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>As part of our series of initiations on copper stocks, <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> is another play with a cheaper multiple than <a href="https://www.smartkarma.com/entities/southern-copper-corp" target="_blank" data-smartkarma-citation="entities:16279:1" rel="noopener">Southern Copper (SCCO US)</a> but an inferior ROCE.</li>
<li>With its most recent acquisition of the Jose Maria copper project in a 50:50 JV with BHP, the mid-size copper-producing company is on its way to growth after 2027.</li>
<li>Trading at 17x FY25e and 5.0x EV-EBITDA, this is another company in our stable worth exploring. </li>
</ul>


As part of our series of initiations on copper stocks, Lundin Mining (LUN CN) is another play with a cheaper multiple than Southern Copper (SCCO US) but an inferior ROCE.
With its most recent acquisition of the Jose Maria copper project in a 50:50 JV with BHP, the mid-size copper-producing company is on its way to growth after 2027.
Trading at 17x FY25e and 5.0x EV-EBITDA, this is another company in our stable worth exploring. 


Lundin Mining (LUN CN): Cheap Play on Copper

<ul>
<li>Disappointing September/October China lending data with TSF down 9%/24% YoY to 3.7/1.4 trillion RMB Vs. (analysts expectations of 4/1.5 trillion RMB) has led to skepticism about China's recovery story.</li>
<li>Copper prices have dropped below 9000 USD/ton and stayed there despite the fall of exchange inventories. </li>
<li>We like the LT copper story and see long-term benefits for stocks like <a href="https://www.smartkarma.com/entities/southern-copper-corp" target="_blank" rel="noopener">Southern Copper (SCCO US)</a>, <a href="https://www.smartkarma.com/entities/ivanhoe-mines-ltd" target="_blank" rel="noopener">Ivanhoe Mines (IVN CN)</a>, and <a href="https://www.smartkarma.com/entities/teck-resources-ltd-36dbdad5-1430-4d7a-8578-31bc50086f72" target="_blank" rel="noopener">Teck Resources (TECK US)</a>. </li>
</ul>


Disappointing September/October China lending data with TSF down 9%/24% YoY to 3.7/1.4 trillion RMB Vs. (analysts expectations of 4/1.5 trillion RMB) has led to skepticism about China's recovery story.
Copper prices have dropped below 9000 USD/ton and stayed there despite the fall of exchange inventories. 
We like the LT copper story and see long-term benefits for stocks like Southern Copper (SCCO US), Ivanhoe Mines (IVN CN), and Teck Resources (TECK US). 


Copper Tracker 25th November 2024: TSF Disappoints, What Next?

<ul>
<li>The Ministry of Finance has decided to end the 13% export tax rebate on copper effective December 1st, 2024. Copper semi-producers rely on this rebate to remain profitable. </li>
<li>Copper semi-producers might rush to sell their inventory by 1st December when changes take effect, which may affect prices and distort differentials on the SHFE-LME. </li>
<li>As long-term bulls, we like <a href="https://www.smartkarma.com/entities/southern-copper-corp" target="_blank" rel="noopener">Southern Copper (SCCO US)</a>; under 100 USD/share, it is worth exploring. We also believe a long LME short SHFE trade in the short-term could work.  </li>
</ul>


The Ministry of Finance has decided to end the 13% export tax rebate on copper effective December 1st, 2024. Copper semi-producers rely on this rebate to remain profitable. 
Copper semi-producers might rush to sell their inventory by 1st December when changes take effect, which may affect prices and distort differentials on the SHFE-LME. 
As long-term bulls, we like Southern Copper (SCCO US); under 100 USD/share, it is worth exploring. We also believe a long LME short SHFE trade in the short-term could work.  


Copper Tracker Nov 18th, 2024: Export Tax Rebate Cancellation on Copper Throws Market in A Tizzy

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 reported notable progress and financial growth in its third quarter and nine-month financial results for 2024, highlighting a comprehensive blend of achievements and forward-looking strategies amid fluctuating market conditions.</li><li>This analysis delves into both the positive advancements and the challenges facing the company.</li><li>On the positive side, Southern Copper showcased a robust increase in copper production, which saw an 11% rise in the third quarter, reaching 252,219 tons.</li></ul>

Southern Copper Corporation reported notable progress and financial growth in its third quarter and nine-month financial results for 2024, highlighting a comprehensive blend of achievements and forward-looking strategies amid fluctuating market conditions.This analysis delves into both the positive advancements and the challenges facing the company.On the positive side, Southern Copper showcased a robust increase in copper production, which saw an 11% rise in the third quarter, reaching 252,219 tons.

Southern Copper Corporation:  Expansion of Key Mining Projects & Other Major Drivers

<ul>
<li>We follow up on our coverage of <a href="https://www.smartkarma.com/entities/southern-copper-corp" target="_blank" data-smartkarma-citation="entities:16279:1" rel="noopener">Southern Copper (SCCO US)</a> since our first insight, <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> </li>
<li>The company's revenues/profits have beaten estimates for Q3 2024, up 17%/45% YoY, as opposed to the street estimates of 13%/32% YoY; we expect minor upgrades to earnings. </li>
<li>Trading at 30x PE FY24e, with a 3.5% dividend yield (with 10 Yr- ROCE&gt;22%), we would be excited whenever we see this name at a &lt;100 USD/share level. </li>
</ul>


We follow up on our coverage of Southern Copper (SCCO US) since our first insight, Southern Copper: In a League of Its Own 
The company's revenues/profits have beaten estimates for Q3 2024, up 17%/45% YoY, as opposed to the street estimates of 13%/32% YoY; we expect minor upgrades to earnings. 
Trading at 30x PE FY24e, with a 3.5% dividend yield (with 10 Yr- ROCE&gt;22%), we would be excited whenever we see this name at a &lt;100 USD/share level. 


Southern Copper Q3 2024 Concall: Another Small Beat, Future Production Estimates Inline

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)

Lundin Mining (LUN CN): Cheap Play on Copper

We compare Lundin Mining with its peers among the pure copper/base metals miners. Lundin mining has a rich portfolio of long-life copper mines in...

Sameer Taneja

Copper Tracker 25th November 2024: TSF Disappoints, What Next?

We analyze China lending (TSF), a forward indicator for copper demand. There has been no pick up in lending yet in China, which has resulted in the...

Sameer Taneja

Copper Tracker Nov 18th, 2024: Export Tax Rebate Cancellation on Copper Throws Market in A Tizzy

We analyze the impact of China's recent 13% export duty rebate cancellation on copper and the valuations of our favorite copper picks after the...

Sameer Taneja

Southern Copper Corporation: Expansion of Key Mining Projects & Other Major Drivers

Southern Copper Corporation reported notable progress and financial growth in its third quarter and nine-month financial results for 2024,...

Baptista Research

Southern Copper Q3 2024 Concall: Another Small Beat, Future Production Estimates Inline

We summarize the Q3 2024 results and the conference call for Southern Copper (SCCO US), the low-cost copper producer with a >20% ROCE across the...

Sameer Taneja

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