Southern Copper sits at the bottom of the global copper cost curve, which has kept it profitable through every downturn. Byproduct sales of molybdenum, zinc and silver from the same ore cut its net cost to 5 cents a pound last quarter. Over 21 years its worst net margin was +12.7%, while Freeport-McMoRan's was -82.7% in 2015; when prices fall, higher-cost mines slip into losses while Southern Copper stays above the line. x.com  x.com 

Southern Copper is outperforming copper itself thanks to operating leverage, as AI and grid demand push copper toward a widening deficit. Copper gained about 50% over the past year to a record near $14,545 per tonne in August, supported by demand from AI data centers and power grid expansion, while major producers cut output, pushing the market toward a deficit expected to widen through 2030. Southern Copper has the highest momentum rating among US mega-caps. x.com 

Southern Copper looks expensive against its sales. At $203.92 and a $172.2 billion market cap, it trades about 98% above the high end of a $80.84-102.89 fair value range based on 5x mid-cycle sales. It also trades at 28x forward earnings, 11x EV/sales and a PEG of 5.41. x.com 

Copper could see extreme demand from the AI buildout over the next few years, enough that $8,000 may end up being the Wave 5 target zone. x.com 

Copper will follow the AI trade lower, making it a good catch-up short. x.com 

Southern Copper is a critical upstream supplier to AI: it doesn't make AI software or chips, but mines the copper the massive physical infrastructure behind AI requires. It fits a relevant theme flagged by a proprietary algorithm. x.com 

Copper miners stand to benefit from a massive undersupply of copper right now, making the copper miners ETF a candidate for selling puts. x.com 

Copper miners should catch up to copper once oil comes down and logistics chains reopen. Supply pressure plus AI demand have created a perfect storm that pushed copper to new all-time highs. The pattern target is 115, with 92 as the breakout line. x.com 

Freeport-McMoRan and Southern Copper own the real AI bottleneck, copper, a link almost no one is pricing yet. AI data centers are wrapped in copper wire, EVs need 2-3x the copper of gas cars, and every grid upgrade needs it; per S&P Global, demand nearly doubles by 2035. Supply can't respond fast: a US mine takes 29 years from discovery to production, and only three major US mines have opened since 2002. Freeport is the liquid bellwether; Southern Copper is the lowest-cost producer. x.com  x.com  … Show more

Copper miners look attractive because copper could quickly double and become a true AI supply-chain bottleneck, though the trade is fairly consensus. Per a quoted thread on S&P Global data, tier-1 discoveries fell from 714.8Mt in the 1990s to 8.7Mt over 2020-2025 despite exploration spending above $3 billion a year. A mix of explorers and producers works best: Hudbay and Taseko for US assets, Ero as cheap, Solaris as built for a sale, plus Glencore, Teck, Southern Copper and Freeport. x.com  … Show more