GMBXF - Southern Copper Corporation Stock Almost Tripled - Now What?
2024-05-31 17:06:51 ET
Summary
- Copper prices reached record highs due to increased demand from artificial intelligence, defense spending, and the green energy transition.
- China's weak real estate sector may impact global copper demand and manufacturers' willingness to pay premiums for copper.
- Despite potential challenges, the bull case for copper remains intact as demand continues to rise and meet supply challenges.
- Southern Copper Corporation is boosting output, maintaining strong margins, and focusing on other metals to further improve income.
- I maintain a Hold rating for Southern Copper after the latest rally.
Introduction
It's time to go back to 2022.
Back then, I wrote my most recent article covering the copper giant Southern Copper Corporation ( SCCO ) in an article titled "I'm A Copper Bull, Here's Why Southern Copper Could Double."
In that article, I discussed the strong secular tailwinds of copper, especially regarding its role in the energy transition, which could push annual copper demand to almost 40 million metric tons by 2040....
Southern Copper Corporation Stock Almost Tripled - Now What?