Before this buying spree began Larrea owned 249,367 shares, mostly purchased in the fall 2008 and spring 2009, at the same time Grupo was loading up on dirt cheap shares.
Beginning on 7/30/14 thru 9/10/14, he has purchased in the open market 770,000 shares at an eyeball average of 32 per share......about 24.6 million. After the 9/10 purchase of 50,000 he owned 1,019,367.
So, in less than 1.5 months the chairman bought in the open market more than 3 times what he previously owned directly.
This ain't a token purchase and he is not doing it to prop up the price. IMO, he's doing it to make a profit.
The dividend stinks and will continue to stink until the buildout is finished, so it must be appreciation he is after.
Is this a prelude to Grupo taking out the non-grupo shareholders at a small premium or is it just he knows the price is too low compared to future prospects???? Don't know the answer, but am glad to see the chairman speaking so loudly with his own cash that he thinks the price is too low.
Peru says to issue final permit for Southern Copper mine in daysBY Reuters
— 1:28 PM ET 07/31/2014
LIMA, July 31 (Reuters) - Peru said on Thursday it will issue the long-awaited environmental permit for Southern Copper Corp's (SCCO
) Tia Maria project by Monday, removing the final hurdle to construction on the stalled $1.4 billion project.
Deputy Mines Minister Guillermo Shinno said all questions about the company's environmental impact study for the project in Southern Peru have been answered satisfactorily and that an official approval is being written now.
Better late than never.
Well, if you have been long the stock for over a decade (a little longer than I), you should have an inkling of scco's after tax return on average assets. The dividends you have not been collecting for the past two years are being invested in expanding production capacity. Since this is incremental capacity with very little increase in overhead, the returns on this investment should be very good even at 3.00 copper.
I was tempted to try to time the lag between investing dividend dollars in new capacity and the future increased dividends which will come from it, but the tax cost was too high. Besides, I considered the 11/2012 2.75 dividend 25 cents for 3Q 2012 and windfall prepayment of 25 cents per quarter for 10 quarters while current cash flow finances future increased production.
Why do you suppose Larrea just more than tripled his private ownership to more than 1 million shares, paying about 32 per share? It ain't because he was trying to prop up the price with personal dollars.
I think this is the time of year when roger goes primitive at his cabin in the boonies.....where he wash himself twice a month in the lake. The greenies will be after him for polluting local waters, just like scco. In any event, he's not missing much.
Looks like the tutes have decided to dump both FCX and SCCO today. Is it a lemming reaction?
Maybe if we wait a little longer we will be able to buy-in at the lows of recent insider purchases. So ask yourself are the insiders smarter than the tutes or do the insiders just have a longer horizon?
Maybe, just maybe, the tutes need free-up cash to buy into the Aliabba IPO.
Could be a chance for a flip, or if you can wait, a chance to get more shares on the long side.
I suspect a couple of years from now nobody will be complaining about the dividend.
Just some thoughts.
Velasco has an excellent record of buying low and selling high--you can see all his buys and sells in recent years at the J3SG website. He knows when his company is a bargain, but timing depends on when the market recognizes it. Patience required.
Inversion....good idea. Can you tell us how much U.S. tax they would save with an inversion? Put another way, how much would the effective tax rate drop?
Just found a report:
RENO (Mineweb) -
A second chemical spill has taken place at a North American mine, withMexico’s Procuraduría Federal de Protección al Ambiente (PROFEPA, attorney general for environmental protection) ordering Grupo Mexico subsidiary Southern Copper to make “full remediation” for a 1.4 million cubic feet spill of sulfuric acid into the Bacanuchi River.
Authorities imposed restrictions on the water supply to several towns and cities in northwest Mexico after the spill allegedly turned the water orange. The National Water Commission said it was monitoring chemicals in the Bacanuchi and Sonora Rivers following the spill at the Buenavista copper mine in Cananea, south of the U.S. border in Arizona.
Spill near Cananea mine contaminates river
By Richard Kamp, Wick Environmental Liaison
Fri, 08/15/2014 - 5:52pm
The Grupo Mexico Cananea Buena Vista mine spilled millions of gallons of a sulfuric acid leach solution on Thursday Aug. 7, containing huge amounts of copper and other metals and contaminants into the Rio Bacanuchi, continuing into the Rio Sonora, south and east of Cananea, mine and governmental officials confirmed this week.
The contamination has resulted in miles of a red-flowing river south at least 150 miles to Mazacahui, Sonora, leaving dead fish and dead cattle that drank from the river, in its wake. Seven municipal-county areas are receiving bottled water — prohibited for an indefinite period to drink from municipal and private potable wells, and leaving a population wondering how long their lands and water would be polluted.
Geez you know more than the Chariman. That was a lot of buys he must be moron to have put himself in the position of buying $25M of stock with pocket money.
Insiders already own 81.3% of this company. They have every reason to buy shares with their income from other sources. Insider ownership is a great thing for shareholders in that it gives management incentive to grow shareholder value!
Sentiment: Strong Buy
I'm tempted but concerned we have not seen the last of the charges for the Cananea spill.
Larrea continued buying well into Sep with the spill 8/6. Am conflicted......buy on Larrea or wait for spill damage known.
Hmmm ..... 11/15 am e.s.t ...... SCCO down 5.22%, FCX down 2.0% and VALE down 4.17%.
Clearly the latest spill may be impacting SCCO share price today but it's not the only reason.
Getting into buy territory IMHO for either a flip or long-term hold.
According to 8K, just rainwater with some mineral in it. From 8-K:
Mexico City, September 22, 2014, Buenavista del Cobre, S.A. de C.V. (the "Company"), a subsidiary of Southern Copper Corporation, reports that there was no second spill of acid copper sulfate solution at any of the reservoirs at the Buenavista del Cobre mine.
As a consequence of heavy rains triggered by Hurricane Odile, the Tinajas 1 and Tinajas 2 reservoirs at the mine were overflowing with rainwater. Such incident was timely communicated to the relevant authorities on September 18, 2014. The Mexican Environmental Protection Agency (PROFEPA) has announced that such discharge derives from the rainwater and contains some ferrous elements below hazardous levels, which are not considered a health hazard. (link deleted to get by yahoo police)
Water testing conducted through September 20th, 2014 by PROFEPA, CONAGUA and the Company reported normal acidity levels in the Bacanuchi and Sonora Rivers.
Hi Goldman- still think SCCO might make a play for AUY with large copper deposit?
It would be a steal for SCCO, may be spin off into 2 companies- when gold recover over $1800/oz in 2 to 3 yrs, sell it to GG or highest bidder.
Sentiment: Strong Buy