- Recent reports show Southern Copper’s short interest has risen 9.14% since the last update, with 9.47 million shares now sold short, representing 9.91% of the freely tradable float and far exceeding the sector’s 1.57% average.
- This elevated short positioning signals a sharp shift toward caution among traders and places Southern Copper under much closer scrutiny than its peers.
- With short interest now far above industry levels, we’ll explore how this growing bearish positioning may influence Southern Copper’s investment narrative.
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Southern Copper Investment Narrative Recap
To own Southern Copper, you generally need to believe in sustained demand for copper and the company’s ability to convert high margins into long term cash generation, despite sizable capex and cost pressures. The sharp rise in short interest heightens short term scrutiny but does not directly change the core catalyst around earnings resilience or the main risk of rising operating costs and large, long duration investment commitments.
Against that backdrop, the recent pattern of rising cash dividends, including the US$0.90 per share payout authorized on October 29, 2025, highlights management’s confidence in current earnings power. While supportive for the near term narrative, these higher distributions sit alongside more than US$15,000,000,000 in planned capital spending, which could test the balance between rewarding shareholders today and funding future growth.
Yet investors should be aware that if operating costs continue to rise faster than sales growth, then...
Read the full narrative on Southern Copper (it's free!)
Southern Copper's narrative projects $13.0 billion revenue and $4.3 billion earnings by 2028.
Uncover how Southern Copper's forecasts yield a $118.29 fair value, a 20% downside to its current price.
Exploring Other Perspectives
Four Simply Wall St Community fair value estimates for Southern Copper cluster between US$100 and about US$124.82 per share, showing how differently individual investors can size up the same business. Set against elevated short interest and rising operating cost risk, these contrasting views underline why it helps to compare several independent opinions before deciding how Southern Copper fits into your own expectations.
Explore 4 other fair value estimates on Southern Copper - why the stock might be worth 32% less than the current price!
Build Your Own Southern Copper Narrative
Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.
- A great starting point for your Southern Copper research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
- Our free Southern Copper research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Southern Copper's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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