Along Peru's mining corridor, Big Copper faces a snarl of trucks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 19 2024
0mins
Source: reuters
- Surging Copper Prices Impacting Peru: Surging copper prices have led to a significant increase in the number of trucks carrying copper from illegal mines in Peru, causing congestion, accidents, and hazardous conditions along key highways.
- Illegal Mining Boom: The demand for copper due to the rise of electric vehicles and clean energy has fueled a boom in illegal mining operations in Peru, leading to overcrowding on roads used by legitimate mines.
- Accidents and Delays: Informal mining trucks have been involved in multiple accidents along the essential highway for transporting copper concentrate to the coast, resulting in delays and stoppages.
- Government Challenges: Stand-offs between large mines and artisan miners are complicating government efforts to boost investment and production in Peru's mining sector, which was recently surpassed by Congo in global copper production.
- Regulation Efforts: Peru's government is attempting to regulate the artisan mining sector more strictly, but faces pushback from small-scale miners, leading to uncontrolled activities and increased traffic along mining corridors.
Analyst Views on SCCO
Wall Street analysts forecast SCCO stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SCCO is 127.95 USD with a low forecast of 90.00 USD and a high forecast of 152.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
0 Buy
5 Hold
5 Sell
Moderate Sell
Current: 176.410
Low
90.00
Averages
127.95
High
152.00
Current: 176.410
Low
90.00
Averages
127.95
High
152.00
About SCCO
Southern Copper Corporation is an integrated copper producer. The Company is engaged in the production of copper, molybdenum, silver, and zinc. The Company’s mining, smelting and refining facilities are located in Peru and Mexico and conducts exploration activities in those countries and in Argentina, Chile and Ecuador. Its segments include the Peruvian operations, Mexican open-pit operations and Mexican underground mining operations. Its Peruvian operations include the Toquepala and Cuajone mine complexes and smelting and refining plants, including a precious metals plant, industrial railroad and port facilities. Its Mexican open-pit operations include the La Caridad and Buenavista mine complexes and the smelting and refining plants, including a precious metals plant and a copper rod plant and support facilities that service both mines. Its Mexican underground mining operations include five underground mines that produce zinc, copper, lead, silver and gold, and a zinc refinery.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
