Forget Southern Copper: 1 Domestic Copper King to Buy Hand Over Fist as the Global Supply Crunch Intensifies

2 hours ago 2

Alex Sirois

Tue, June 30, 2026 astatine 9:31 AM CDT 4 min read

Quick Read

Freeport-McMoRan trades astatine fractional Southern Copper's valuation multiples portion straight capturing tariff-driven COMEX premiums arsenic America's largest home copper producer.
Southern Copper trades astatine a guardant P/E of 39 contempt declining production, carrying six beardown merchantability ratings and zero beardown buys.
Kathleen Quirk targets a 60% U.S. copper accumulation summation from home assets alone, with a Bagdad enlargement determination expected successful 2026.
Act now: the expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks — and Freeport-McMoRan didn't marque the cut. Grab the names FREE today.

Southern Copper (NYSE:SCCO) is the sanction connected each commodity desk's lips close now, with the banal up 73.95% implicit the past twelvemonth connected the backmost of a screaming copper tape.

A bronze bull statue faces forward, partially obscured by glowing bluish fiscal inclination lines and barroom graphs that bespeak upward movement. In the blurred background, stacks of U.S. dollar bills are visible, on with translucent dollar signs floating supra the scene. The wide colour strategy is lukewarm bronze and chill blue.

Southern Copper is the incorrect conveyance for the copper supercycle, and the marketplace is starting to fig it out. The banal has already slid 11.23% successful the past week, and the fundamentals warrant more. Southern Copper's $142.89 cardinal marketplace headdress commands a guardant P/E of 39 and an EV/EBITDA of 16, premium multiples for a shaper whose Q1 2026 results were a pricing story, not a measurement story. Copper accumulation really declined 4.0% twelvemonth implicit year, with Peruvian operations disconnected 9.8% connected softer ore grades, portion the header $1.92 EPS and 36.2% gross maturation were astir wholly driven by metallic terms tailwinds the institution does not control.

Worse, Southern Copper produces thing successful the United States. The 50% U.S. copper import tariff that took effect August 1, 2025 is simply a nonstop headwind for a Peru and Mexico based producer, and the maturation pipeline (Tia Maria, Los Chancas, Michiquillay, El Arco) is back-loaded into 2027 done 2032 and exposed to permitting and governmental hazard connected 2 unfriendly borders. Analysts person noticed: six complaint the banal beardown merchantability against zero beardown buys.

The Domestic Copper King Trading astatine a Discount

Freeport-McMoRan (NYSE:FCX) is the redirect. At $62.45 with an EV/EBITDA of 10 and a guardant P/E of 23, the banal is materially cheaper than Southern Copper connected each cash-flow aggregate that matters.

Act now: the expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks — and Freeport-McMoRan didn't marque the cut. Grab the names FREE today.

1. The tariff moat is existent cash. Freeport is the largest home U.S. copper producer, with the U.S. mines conception generating $2.20 cardinal successful Q1 2026 revenue. The COMEX premium baked into the tariff operation flows consecutive to Freeport. Southern Copper sees nary of it.

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