Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

<ul>
<li>Post our  initiations <a href="https://www.smartkarma.com/insights/southern-copper-in-a-league-of-its-own" target="_blank" data-smartkarma-citation="insights:139839" rel="noopener">Southern Copper: In a League of Its Own</a> and <a href="https://www.smartkarma.com/insights/teck-resources-teck-us-the-new-purish-copper-play-in-town" target="_blank" data-smartkarma-citation="insights:152051" rel="noopener">Teck Resources (TECK US): The New Purish Copper Play In Town</a>, we initiate on <a href="https://www.smartkarma.com/entities/antofagasta-plc" target="_blank" data-smartkarma-citation="entities:21814:1" rel="noopener">Antofagasta PLC (ANTO LN)</a> </li>
<li>The company provides an excellent channel check for Chile's mining environment. It accounts for 24% of global mined production in the copper market. </li>
<li>We provide a comparison between all the mining players' ROIC and which are the favorable names to play in the space. </li>
</ul>


Post our  initiations Southern Copper: In a League of Its Own and Teck Resources (TECK US): The New Purish Copper Play In Town, we initiate on Antofagasta PLC (ANTO LN) 
The company provides an excellent channel check for Chile's mining environment. It accounts for 24% of global mined production in the copper market. 
We provide a comparison between all the mining players' ROIC and which are the favorable names to play in the space. 


Antofagasta (ANTO LN): An Initiation on a Mid-Sized Copper Miner

<ul>
<li>Concerns about a further slowdown in the Chinese and US economies have led to the commodity complex selling off, but copper remains resilient at the 9000 USD/ton level.</li>
<li>Copper inventories on the exchanges have declined by over 6% in the last three weeks, although they remain elevated at over 470k tons. </li>
<li>We see pockets of value emerging in equities post the sell-off but would only trigger stocks like <a href="https://www.smartkarma.com/entities/southern-copper-corp" target="_blank" rel="noopener">Southern Copper (SCCO US)</a> and <a href="https://www.smartkarma.com/entities/ivanhoe-mines-ltd" target="_blank" data-smartkarma-citation="entities:25338:1" rel="noopener">Ivanhoe Mines (IVN CN)</a> at lower levels. </li>
</ul>


Concerns about a further slowdown in the Chinese and US economies have led to the commodity complex selling off, but copper remains resilient at the 9000 USD/ton level.
Copper inventories on the exchanges have declined by over 6% in the last three weeks, although they remain elevated at over 470k tons. 
We see pockets of value emerging in equities post the sell-off but would only trigger stocks like Southern Copper (SCCO US) and Ivanhoe Mines (IVN CN) at lower levels. 


Copper: Holding Its Ground, Value Emerging In Equities

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Southern Copper Corporation's second quarter and 6 months results of 2024 suggest a resilient performance with both positive and negative attributes.</li><li>The company reported a 15% surge in London Metal Exchange copper price in comparison to Q2 2023, which combined with production cuts and market deficit, resulted in positive trends for the corporation.</li><li>Copper made up about 76% of the company's sales in Q2, and despite a weak demand from China, the corporation confidently expects a 0.6% increase in the copper supply for 2024.</li></ul>

Southern Copper Corporation's second quarter and 6 months results of 2024 suggest a resilient performance with both positive and negative attributes.The company reported a 15% surge in London Metal Exchange copper price in comparison to Q2 2023, which combined with production cuts and market deficit, resulted in positive trends for the corporation.Copper made up about 76% of the company's sales in Q2, and despite a weak demand from China, the corporation confidently expects a 0.6% increase in the copper supply for 2024.

Southern Copper Corporation: Exploration and Development of New Deposits! - Major Drivers

<ul>
<li>With increasing market volatility, base metals continue their rocky weekly performance. Copper is up marginally, taking it past 9000 USD/ton.</li>
<li>Copper inventories continue to pile at the exchanges, with ~500k tons combined at Comex, LME, and Shanghai, up almost 7% in the last two weeks. </li>
<li>We believe accumulating names like <a href="https://www.smartkarma.com/entities/southern-copper-corp" target="_blank" rel="noopener">Southern Copper (SCCO US)</a> and <a href="https://www.smartkarma.com/entities/ivanhoe-mines-ltd" target="_blank" rel="noopener">Ivanhoe Mines (IVN CN)</a> with good long-term fundamentals is a great strategy. </li>
</ul>


With increasing market volatility, base metals continue their rocky weekly performance. Copper is up marginally, taking it past 9000 USD/ton.
Copper inventories continue to pile at the exchanges, with ~500k tons combined at Comex, LME, and Shanghai, up almost 7% in the last two weeks. 
We believe accumulating names like Southern Copper (SCCO US) and Ivanhoe Mines (IVN CN) with good long-term fundamentals is a great strategy. 


Copper Tracker August 19th, 2024: Markets Volatile, Accumulate Good Copper Names On Weakness

<ul>
<li>Copper declined below the 9,000 USD/ton levels (WoW by -0.5%) due to weakness in financial markets caused by the Federal Reserve's slowness in cutting rates. </li>
<li>Positive signs for copper were the Yangshan Copper Premium inflecting into positive territory and combined inventory on all exchanges being drawn down by almost 5%. </li>
<li>
<a href="https://www.smartkarma.com/entities/lundin-mining-corp-92352503-3781-4fcb-a4db-62e6f6343783" target="_blank" data-smartkarma-citation="entities:25356:1" rel="noopener">Lundin Mining (LUN CN)</a> and <a href="https://www.smartkarma.com/entities/bhp-group-ltd" target="_blank" data-smartkarma-citation="entities:147:1" rel="noopener">BHP Group Ltd (BHP AU)</a> will acquire <a href="https://www.smartkarma.com/entities/filo-corp" target="_blank" data-smartkarma-citation="entities:42545:1" rel="noopener">Filo (FIL CN)</a> for 4.1 bn CAD and develop the <a href="https://lundinmining.com/news/lundin-mining-and-bhp-to-acquire-filo-and-form-a-5-123162/" target="_blank" rel="noopener">Josemaria project in Argentina</a>. </li>
</ul>


Copper declined below the 9,000 USD/ton levels (WoW by -0.5%) due to weakness in financial markets caused by the Federal Reserve's slowness in cutting rates. 
Positive signs for copper were the Yangshan Copper Premium inflecting into positive territory and combined inventory on all exchanges being drawn down by almost 5%. 

Lundin Mining (LUN CN) and BHP Group Ltd (BHP AU) will acquire Filo (FIL CN) for 4.1 bn CAD and develop the Josemaria project in Argentina. 


Copper Tracker August 5th, 2024: Physical/​Equity Screens And Trades, Positive Signs For Copper

United States

Southern Copper Corporation conducts mining operations in Peru and Mexico.  The Company owns and operates open pit mines and metallurgical complexes that produce copper, molybdenum, zinc, and precious metals.

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Southern Copper (SCCO US)

Antofagasta (ANTO LN): An Initiation on a Mid-Sized Copper Miner

We compare and contrast ANTO LN (Antofagasta), a mid-size copper producer, with competitors using an ROCE analysis and the impacts of this metric...

Sameer Taneja

Copper: Holding Its Ground, Value Emerging In Equities

Copper equities are in the midst of a sell-off, given recessionary fears and weak China data, but copper is resilient. We highlight the stocks we...

Sameer Taneja

Southern Copper Corporation: Exploration and Development of New Deposits! - Major Drivers

Southern Copper Corporation's second quarter and 6 months results of 2024 suggest a resilient performance with both positive and negative...

Baptista Research

Copper Tracker August 19th, 2024: Markets Volatile, Accumulate Good Copper Names On Weakness

This brief insight summarizes Copper's performance and equities on our screens. We highlight our research and trades to explore.

Sameer Taneja

Copper Tracker August 5th, 2024: Physical/Equity Screens And Trades, Positive Signs For Copper

This brief insight summarizes Copper's performance and equities on our screens. We highlight our research and trades to explore.

Sameer Taneja

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Antofagasta (ANTO LN): An Initiation on a Mid-Sized Copper Miner

We compare and contrast ANTO LN (Antofagasta), a mid-size copper producer, with competitors using an ROCE analysis and the impacts of this metric...

Sameer Taneja

Copper: Holding Its Ground, Value Emerging In Equities

Copper equities are in the midst of a sell-off, given recessionary fears and weak China data, but copper is resilient. We highlight the stocks we...

Sameer Taneja

Southern Copper Corporation: Exploration and Development of New Deposits! - Major Drivers

Southern Copper Corporation's second quarter and 6 months results of 2024 suggest a resilient performance with both positive and negative...

Baptista Research

Copper Tracker August 19th, 2024: Markets Volatile, Accumulate Good Copper Names On Weakness

This brief insight summarizes Copper's performance and equities on our screens. We highlight our research and trades to explore.

Sameer Taneja

Copper Tracker August 5th, 2024: Physical/​Equity Screens And Trades, Positive Signs For Copper

This brief insight summarizes Copper's performance and equities on our screens. We highlight our research and trades to explore.

Sameer Taneja

Copper Tracker August 5th, 2024: Physical/Equity Screens And Trades, Positive Signs For Copper