Forgot to add: This Q dividend = 80.5 million vs 100.0 million same Q last year.
Look at the ratio...1Q 2014....100.0 + 52.5 = 152.5 total payout. Dividend = 65.6% of total.
This year 1Q 2015................. 80.5 + 370.1 = 450.6 total. Dividend = 17.9% of total.
Notice a little acceleration and shift in mix?
The forceout is coming.
In 1Q scco spent 370.1 million buying back 13.1 million shares (average = 28.25). These are approximations due to rounding. Actual will be in 10-Q.
BTW, in money....370.1 million this Q vs 52.5 million same Q last year. Up over 7 times. I'd call that an acceleration. Less than 800 million outstanding at 3/31/15.
From scco earnings release: " Operating cash costii per pound of copper before by-product credits was $1.66 in 1Q15, a 9.3% improvement,
compared to 1Q14. Operating cash cost per pound of copper net of by-product credits was $0.98 in 1Q15"
SCCO's GROSS cost is only 2 cents higher than the bloated pig's NET cost per pound. On net, it's 1.64 vs .98.
Yeah, yeah, I know they calculate differently. FCX leaves out administrative cost, among others.
They both produce all they can and sell all they produce at a price set by the world market. The only thing left to profit is cost to produce. 66 cents per pound in scco's pocket is HUGE.
Yesterday's dividend announcement......."Southern Copper Corporation is one of the largest integrated copper producers in the world and has the largest
copper reserves of the industry. We are a NYSE and Lima Stock Exchange listed company that is 86.1% owned byGrupo Mexico,
In 4/17 release it was 86%.
From FCX earnings release: "Consolidated unit net cash costs for first-quarter 2015 averaged $1.64 per pound of copper for mining operations......"
And the bloated, overpaid management wrote off another 2 billion of their oil purchase......make believe it isn't a real expense, just like writing off 9 billion of the Phelps Dodge purchase.
Only through SCCO buybacks for the moment. Grupo has not bought a share since 2012 when I looked a week ago. If SCCO uses the full authorization at current prices, Grupo will get up to just shy of 90% ownership, I believe even counting German's shares. BTW, German personally once built a bigger stake in SCCO and then reduced it significantly, so he is not exclusively an accumulator.
SCCO has $2.8bn capex this year and if divs are maintained,, over $3bn of expenditures. This is not simply borrowing for a buyback, they need to borrow for operations in all likelihood, and if the identified projects in the out years are real, they will need all the cash flow - even from expanded operations - and then some for that.
That said, this is part and parcel of funding continued buyback of shares as I see it.
NEW YORK, April 20 (IFR) - Southern Copper, a miner with operations in Peru and Mexico, hogged the limelight Monday with a rare US$2bn bond sale in an otherwise quiet session for Latin America credit markets.
Latest update from the USW website dated 4/10/15.
Blah, Blah, Blah.
Company is not open to any wage increases. We've made progress and will continue to push forward. We've been at the table for almost two years and we've done a good job, you should be proud of us but we're still not "there".
Bottom line, union is softening its language.
Pitiful (actually scary), the yahoo speech police would not let me say h*o*r*n*y in front of cats. They changed it to symbols.
Unbelievable. This is where speech police are going. Since when is "less h*o*r*n*y cats" offensive to anybody but the neutered cats who can't read anyway.
Yeah, yeah, the yahoo message boards are yahoo property and they can set whatever rules they want for somebody to use their property. But where does this kind of censorship stop?
You could be right about a low base, but to maintain that low base SCCO/GRUPO must not only out smart us "stupid" retail investors (no big deal) but they've also got to out smart the institutional investor which we should expect will be a lot tougher.
Who would cry foul if the buy out is for $34.50? What about if the buy out is for $40.50 after a quick run up shortly before an offering?
dar, you are slipping. Higher ownership than 85.1% was reported over a month ago.
As to rog's point - from what is the key question. Grupo knows how to play hardball. The base from which a premium is calculated could end up being lower than today's price, as well as higher. Today's price might well end up being the buyout price. It does not take a lot to engineer such an outcome legitimately.
You are both right about localities being just as bad if not worse than federal govt in spending money on worthless stuff. Locally our conservative dominated community is are very happy to raise taxes repeatedly and spend money on worthless stuff. That said, our local public corporations also spend boatloads of money on CEO interests that have nothing to do with shareholders.
You think you got me beat ….. NO WAY!
This is an ABSOLUTELY TRUE story: My mother who died in 2010 at the age of 99 let this slip in conversation with me during her later years ….. in her opinion cats taste a lot better than dogs …... sweeter meat, in her opinion.
Upon further probing she admitted that she and her family ate cats, dogs and horse flesh whenever they were lucky enough to get some …... but they never stooped to rats (!!). Of the three she preferred the cat meat. Now, I once ate horse meat and it's not bad …. so how good is cat meat?
Ask yourself why would someone do this? The answer is it was post WW1 in Germany. So whenever you think you got it bad with your flat screens, smart phones, internet and bottled water think about this story.
Dar ….. I agree with you, spend a buck on a shotgun shell and help feed a few homeless people …. what could be more compassionate?