MS-Southern Copper Corp. Risk Reward Update-20251104

We are equal-weight SCCO on attractive high dividends, supported by elevated copper prices. SCCO is one of the few pure copper plays that had no operational issues in the recent past, but valuation remains stretched. In our 2025 and 2026 numbers,the stock trades well above its 5-year average, both on the EV/EBITDA and P/E multiple of 10.8x and 20.0x, respectively.On top of that, there is a potential higher capex related to the development of the Tia Maria copper project in Peru, that we do not add to our base case given uncertainties around it.