Southern Copper’s (SCCO) stellar performance over the past year can be attributed to soaring copper prices amid accelerating demand for the red metal for clean energy initiatives. Because global efforts to transition to clean energy are expected to continue driving the demand for copper, we think the company is well-positioned to benefit and its shares should keep ascending. Read on.Copper mining company Southern Copper Corporation (NYSE:SCCO) has been rallying as copper prices continue to surge amid a widening supply/demand gap. The stock has gained 97.7% over the past year and 9% so far this year.
Since copper is crucial for renewable energy, the metal’s price could keep climbing with rising global sustainable energy initiatives worldwide. Also, copper is a major component in electric vehicles, so SCCO should witness solid demand. Last, President Biden’s $2 trillion infrastructure package proposal bodes well for the copper miner.
The company reported strong first quarter results, in-part due to the timely roll-out of its expansion program and significant cost control measures, despite unprecedented challenges resulting from the pandemic-related downturn.