Copper stocks that should not be missed? The rising trend of Southern Copper (SCCO.US) continues.

1. The southern copper mine will take advantage of the east wind of economic recovery to soar again.

Global economic growth stagnated after the first health incident at the beginning of the year, and now economic data show a strong recovery, which is good for commodities such as copper, which are often used in manufacturing, a trend that can accelerate the development of the following companies.

SCCO.US, the world's fifth-largest copper producer, mined nearly 2.2 billion pounds of copper in 2019. Copper prices have risen in recent months, with higher sales prices for copper mined in the south. SCCO's latest results reveal that southern copper's sales rose 14.5% in the most recent quarter from a year earlier, thanks in part to higher sales and copper prices.

As the chart below shows, Southern Copper's share price recently hit a 52-week high. Berry also analyzed the investment opportunities of southern copper for the first time on September 3, which was up 18.3% by the close of trading on November 6.

2. Berry reviews the main points of the first bullish southern copper industry on September 3:

Copper has outperformed gold since the market bottomed out. It's just that the light of gold is so dazzling that ordinary investors don't notice copper.

When we are bullish on copper, but have no experience in futures investment, what should we do?

We can configure copper stocks in the non-ferrous sector. Next Berry analyst Bill Shaw will recommend a copper stock.

Southern Copper is a southern copper company based in Lima, Peru, founded in 1952. At that time it was called the copper mine in southern Peru. But after acquiring Mexican copper miner Minera M é xico in 2005, the company removed "Peru" from its name. It is currently the fifth largest copper producer in the world.

Southern Copper still operates mainly in Mexico and Peru. It has four important open-pit copper mines and five underground mines that produce zinc, copper, silver and gold. The company also has exploration projects in both countries, as well as in Argentina, Chile and Ecuador. As a comprehensive producer, Southern Copper also has smelting and refining facilities.

Southern Copper mined nearly 2.2 billion pounds of copper last year. It also mined 21 million ounces of silver, 60 million pounds of molybdenum and 163 million pounds of zinc.

In Peru, the company's most important assets are the Toquipala and Cuahone open-pit mines. The two mines are only 20 miles apart and are more than 10000 feet above sea level in the Andes. They are about 540 miles southeast of Lima, Peru. The two mines produced 912 million pounds of copper in 2019, up 25 per cent from 2018. Equivalent to 41% of the total output of the southern copper industry last year.

In Mexico, the flagship assets of Southern Copper are Buenavista and La Caridad open-pit mines. Its Buenavista mine is located 25 miles south of the Mexican town of Cana Arizona. This is the oldest copper mine in North America and its operation dates back to 1899. Despite more than a century of copper production, the Buenavista mine still has reserves of more than 20 million metric tons. This makes it one of the largest copper deposits in the world. This is also the most important asset of Southern Copper. In 2019, it produced 966 million pounds of copper. This is an increase of about 6% over 2018, accounting for 44% of last year's total output. This year, Southern Copper has $1.1 billion earmarked for capital projects in Peru and Mexico. It has several other potential projects in the pipeline.

Another particularly noteworthy mineral deposit is the Tia Maria project in Peru. Southern Copper received permission to build the $1.4 billion mine last July. The Peruvian government finally approved the project in October. However, local opponents have slowed down the development of the mine. Given that Southern Copper has been operating in Peru for 70 years, the company believes that the project will eventually make progress. If the mine is completed, it is expected to produce 120000 tons of copper a year within 20 years. In the meantime, however, Southern Copper can wait patiently. Its operating assets will continue to provide an adequate supply.

The company claims to have the world's largest copper reserves. It has reserves of more than 67 million metric tons. This means that if the company maintains its current production rate, it will have sufficient reserves to sustain it for nearly 70 years. In other words, Southern Copper can supply the world with copper production for more than three years.

In 2019, the company generated about $7.3 billion in revenue. About 80 per cent of that income ($5.8 billion) comes from copper and the rest from silver, molybdenum, zinc and other metals. About 60% of the company's revenue comes from Mexico and the remaining 40% from Peru.

Last year, Southern Copper had a free cash flow (FCF) of just over $1.2 billion. Friends who have followed Berry for a long time know that this is one of Berry's favorite indicators because cash flow does not lie.

Last year, Southern Copper returned 100 per cent of its free cash flow to shareholders. Investors should be happy to see that. Southern Copper often does this. Over the past decade, Southern Copper has paid more than $13 billion in dividends to shareholders.

The company's balance sheet is also in good shape. At the end of 2019, the company had $2 billion in cash and $4.1 billion in liquid assets. It has about $7.4 billion in debt, but all of this is long-term debt, so its balance sheet is very healthy.

The last time copper prices soared was after the 2008 financial crisis. Southern copper's shares soared 444 per cent as copper prices rose more than 260 per cent in two years. The conditions are now in place for another strong growth.

Owning Southern Copper means buying a "safe" miner with nearly 70 years of proven reserves. It will be patient and will not overspend on marginal assets in pursuit of growth.

Best of all, it has a history of generating free cash flow and rewarding shareholders.

In terms of precious metals investment targets, the three gold mining companies recommended by analyst Bill Shaw earlier this year, Victoria Gold,Alamos Gold (AGI.US) and Tudor Gold, have also seen big gains, but Berry believes they are still worth holding or buying. But remember to control the position.

3. Berry is bullish on Southern Copper Mine again on September 23. The following is the main point analysis:

The depreciation of the dollar means an increase in demand for real assets. Like emerging markets, commodities such as copper are likely to soar in this case.

Spot copper prices hit a low of $4635 a tonne on March 23, the day S & P hit bottom. As of Friday, prices were up 47 per cent at $6833 a tonne.

Bill Shaw, an analyst at Berry Research, believes that the company is now in a position to grow strongly again. In short, copper prices are exploding and the company will benefit from the continuation of the upward trend in copper prices. When copper prices rise, SCCO can soar to incredible heights.

Southern Copper, an established copper mining company, performed well in the first half of 2020, reporting net profit of $474 million from common shareholders belonging to the parent company in fiscal year 2020, down 40.01 per cent from a year earlier, and operating revenue of $3.505 billion, down 1.86 per cent from a year earlier. In the first half of 2020, copper production in the southern copper industry rose 2.1 per cent year-on-year to 484981 tons.

The current price of Southern Copper exceeds UBS's target price of $38 in the first quarter.

In short, copper prices are exploding, and Southern Copper will be the big winner as the uptrend continues, which is part of the reason Berry analysts rated SCCO as a buy today.