Southern Copper Corporation produces copper, molybdenum, zinc, and silver. It engages in mining, milling, and flotation of copper ore to produce copper concentrates and molybdenum concentrates; the smelting of copper concentrates to produce anode and blister copper; and the refining of blister/anode copper to produce copper cathodes. The company also engages in the mining and processing of gold and lead, as well as produces refined copper using SX/EW technology. It operates the Toquepala and Cuajone mines in the Andes Mountains, which is located approximately 984 kilometers southeast of the city of Lima, Peru; and a smelter and refinery west of the Toquepala and Cuajone mines in the coastal city of Ilo, Peru. Southern Copper Corporation has its mining, smelting and refining operations in Peru and Mexico, as well as exploration operations in Chile. The company, formerly known as Southern Peru Copper Corporation, was founded in 1952 and is based in Phoenix, Arizona. Southern Copper Corporation is a subsidiary of Americas Mining Corporation.
There is a positive outlook on Southern Copper's profit picture based on the favorable global demand for copper and lower interest rates. The company is in a very good position to expand production amidst higher-grade ores at its mines. Further, the company has undertaken various exploration projects, which will enhance the production capacity, once operational. This, in conjunction with high copper prices, provides a favorable backdrop for revenue. Based on these positive fundamental factors, this remains a good buy.
$108.76 (06/03/08)
