Southern Copper’s Strong Outlook: A Bright Future for Investors
Currently, Southern Copper is among the global Copper giants that is making its largest ripples in the stock market currently. Recently, JPMorgan gave an upgrade to the company’s stock believing that the company has major prospects as a copper proxy as the demand for the metal remains strong. However, as of the late of November, 2024, the performance reveal the great buying signal of this stock because JPMorgan’s analyst pointed out that this company has high operational efficiency level as well as dominating position in copper mining sector.
Copper has historically been used as an indicator of the global economy and this view is seen with Southern Copper. To date, the rising desire to use copper due to the energy shift towards the use of green energy and expansion of cities, remains the main hope for the industry. Indeed, as more electric vehicles or renewable energy installations or infrastructure are built, the need for copper will go up. JPMorgan’s cohort of analysts forecast that the food processing company’s shares may well give a jump in the coming year which investors should look to invest in.
However, while copper produced by Southern Copper has a bright outlook ahead, the outlook in the general copper market I not as bright due to some emerging factors that include; increased cases of copper cables and raw copper materials theft. This emerging problem threatens supply chain and reels out the ugly side of the raised value of copper.
The Getting Drama: The Growing Threat of Copper Theft
Whenever copper prices are high, then there is always a strong reason as to why thieves especially get attracted to copper cables and other related items. A recent report also showed that copper cable has become a blue addition for the community and the recent spate of cable theft in Perth, Australia. Electrical copper cables are stolen for their value and in the process disrupt essential services such as electricity and telecommunications.
As reported by ABC News, the thieves are into worse tantalizingity as they involve both the urban and the rural areas, looking for copper wiring. Due to increased incidents of thefts Police are advising the public and have upped surveillance along areas most often targeted.
Likewise in Sri Lanka copper strips recently stolen from the Isurupaya building worth Rs 5.1 million as reported by Newswire.lk. The event is illustrative of a worrying recent develop when copper thiefs have been fixating on government structures particularly for the metal’s use in electrical and construction projects. In addition to these thefts which leads to losses, project times may be extended, as well as costs incurred for recovering from the thefts.
This paper aims at discussing the effects of copper theft on supply chains.
This is so because the effects of copper theft cognizant with just the monetary losses incurred by various corporations and governments. Inability to farm the copper metal to the market can be a problem for mining firms such as Southern Copper whenever supply chains of the metal are upset. This poses additional problems for firms seeking to satisfy the increasing demand for copper on the international market.