Southern Copper vs Vale
Southern Copper vs Vale: this page compares business models, financial performance, and market context for the two companies. It outlines how each organisation approaches production, growth, and capital allocation, with attention to scale and geographic exposure. Educational content, not financial advice.
Southern Copper vs Vale: this page compares business models, financial performance, and market context for the two companies. It outlines how each organisation approaches production, growth, and capit...
Why It's Moving
Southern Copper Hits 52-Week High After Crushing Q3 Earnings Expectations
- Q3 net sales soared 15.2% year-over-year to a record $3.38 billion, beating estimates of $3.05 billion, driven by higher volumes of silver, molybdenum, and zinc, signaling diversified revenue resilience.[1][3][4]
- Earnings per share of $1.35 topped forecasts by $0.09, highlighting cost discipline and expansion plans that position SCCO for sustained copper market deficits tied to AI and decarbonization trends.[1][3]
- Board hiked quarterly dividend to $0.90 per share in late October, reflecting confidence in converting profitability into shareholder returns despite a minor insider sale of 400 shares on December 3.[1][3][4]
Vale Goes Ex-Dividend Today as Earnings Strength and Iron Ore Outlook Drive Investor Focus
- Ex-dividend date hits December 12 for $0.37697 regular dividend and $0.29404 special dividend, signaling strong cash flow return to investors after Q3 EPS crushed estimates at $0.63 vs. $0.49 expected.
- Q3 revenue edged past forecasts at $10.42B, with robust 42.4% pre-tax margins underscoring operational resilience despite legal headwinds like Fundao dam provisions.
- 2026 iron ore output guidance cut to 335-345M tonnes due to softer global demand and rising African supply, though CEO eyes growth from India and Vietnam.
Southern Copper Hits 52-Week High After Crushing Q3 Earnings Expectations
- Q3 net sales soared 15.2% year-over-year to a record $3.38 billion, beating estimates of $3.05 billion, driven by higher volumes of silver, molybdenum, and zinc, signaling diversified revenue resilience.[1][3][4]
- Earnings per share of $1.35 topped forecasts by $0.09, highlighting cost discipline and expansion plans that position SCCO for sustained copper market deficits tied to AI and decarbonization trends.[1][3]
- Board hiked quarterly dividend to $0.90 per share in late October, reflecting confidence in converting profitability into shareholder returns despite a minor insider sale of 400 shares on December 3.[1][3][4]
Vale Goes Ex-Dividend Today as Earnings Strength and Iron Ore Outlook Drive Investor Focus
- Ex-dividend date hits December 12 for $0.37697 regular dividend and $0.29404 special dividend, signaling strong cash flow return to investors after Q3 EPS crushed estimates at $0.63 vs. $0.49 expected.
- Q3 revenue edged past forecasts at $10.42B, with robust 42.4% pre-tax margins underscoring operational resilience despite legal headwinds like Fundao dam provisions.
- 2026 iron ore output guidance cut to 335-345M tonnes due to softer global demand and rising African supply, though CEO eyes growth from India and Vietnam.
Which Baskets Do They Appear In?
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Explore BasketWhich Baskets Do They Appear In?
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Published: June 17, 2025
Explore BasketInvestment Analysis
Southern Copper
SCCO
Pros
- Southern Copper is one of the largest integrated copper producers globally with operations across multiple South American countries, providing geographic diversification.
- The company reports solid profitability with recent net income around $3.82 billion and positive cash flow generation.
- Southern Copper pays a stable dividend with a current yield near 2.3% and plans for increasing dividends in coming years.
Considerations
- Analyst consensus is predominantly 'Hold' with price targets implying a downside potential of approximately 14-16% over the next 12 months.
- The company has a relatively high valuation with forward P/E ratios near 26, which may limit upside during market downturns.
- Revenue concentration in copper exposes Southern Copper to commodity price volatility and geopolitical risks in Latin America.
Vale
VALE
Pros
- Vale has a diversified product portfolio including iron ore, nickel, copper, and other metals, mitigating risks from any single commodity.
- The company maintains strong EBITDA margins with recent figures around $10.5 billion, supporting solid operational cash flows.
- Vale is currently trading at an attractive valuation with a P/E ratio below 10, suggesting it is undervalued relative to sector peers.
Considerations
- The balance sheet shows a significant debt load of approximately $20.3 billion, which could increase risk in a rising interest rate environment.
- Exposure to cyclical industries like iron ore and nickel subjects Vale to macroeconomic fluctuations impacting demand and prices.
- Operational risks include environmental and regulatory challenges in Brazil, as well as competition from major global mining companies.
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