Southern Copper stock hits 52-week low at $80.83

Southern Copper Corporation (NYSE:SCCO) shares tumbled to a 52-week low, touching down at $80.83 amidst market fluctuations. The company, with a substantial market capitalization of $63.7 billion and a healthy dividend yield of 3.23%, maintains strong financial metrics according to InvestingPro analysis. The significant drop reflects a broader trend for the mining giant, which has seen its stock price struggle over the past year. Despite the challenges, the company has maintained dividend payments for 30 consecutive years and operates with a moderate debt level. Investors have been cautious, as evidenced by the 1-year change data showing a substantial decline of 25.62% in the company’s stock value. This downturn has raised concerns among shareholders and market analysts alike, as they watch one of the leading copper producers grapple with the challenges of a volatile commodities market and global economic pressures. InvestingPro subscribers have access to 11 additional investment tips and comprehensive analysis for SCCO.

In other recent news, Southern Copper Corporation has seen a positive shift in analyst sentiment as UBS upgraded the company’s stock rating from Neutral to Buy, with a new price target of $120. This upgrade comes amid expectations of a copper market deficit, which could potentially drive higher copper prices. UBS analyst Myles Allsop highlighted Southern Copper’s growth prospects, particularly from the Tia Maria project, which is anticipated to support significant volume growth over the next few years. In a strategic financial move, Southern Copper’s subsidiary, Minera Mexico, has successfully priced $1 billion in senior notes with an interest rate of 5.625%, maturing in 2032. The proceeds from this offering are intended for capital expenditures and general corporate purposes, reflecting the company’s commitment to strengthening its operational infrastructure. This transaction is part of an unregistered offering under Rule 144A and Regulation S of the Securities Act of 1933. The notes are expected to close on February 12, 2025, pending customary closing conditions. These developments underscore Southern Copper’s ongoing efforts to capitalize on market conditions and secure its financial position in the competitive metal mining industry.

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