Press release 3/27 on Tia Maria says Grupo owns 85.1%. Proxy statement says 84.6% as of 12/31/14.
That's a big increase. Public now owns less than 15%. IMO, the forced buyout at a 15% to 18% premium will come before 6/30/16. Might even be at end of this year.
Stupid public can't see it coming and continue to sell shares to Grupo for no premium. Can't blame Grupo. They should cause scco to buy as many as they can without paying a premium.
Here's the "corrective" press release. Message was still sent to Peru economic development people.
SOUTHERN PERU WILL CONTINUE THE TIA MARIA PROJECT
Lima, March 27, 2015- The mining company, Southern Peru Copper Corporation (SPCC), the Peruvian Branch of Southern Copper Corporation (SCC), announced today that it will continue its best efforts to develop the Tia Maria project, located in the district of Cocachacra, province of Islay, region of Arequipa, (Perú).
Regarding the statements made by a representative of the company, Eng. Oscar Gonzalez Rocha, Executive President of SPCC indicated that “the statements do not reflect the will of the company. We consider the Tia Maria project important and very beneficial to the company, its workers, the community in the surrounding area of the project, as well as to the Arequipa region and the country. Completion of such project represents the regaining of trust of the mining investor community.
Additionally, we are grateful for the efforts of the authorities of the Peruvian government to promote the creation of a development dialogue roundtable. We believe that this mechanism will permit synergies between agriculture and mining, as it happens in other countries of the world and is happening with the communities near our operations of Cuajone and Toquepala in the regions of Moquegua and Tacna. Based on this experience, SPCC firmly believes in the favorable integration of agriculture and mining.
SPCC joins the appeals made by various parties to resume a constructive dialogue. There will always be an opportunity to look forward and to find common ground between investors, communities and the Peruvian Government”.
Southern Peru Copper Corporation is one of the largest integrated copper producers of the country and has one of the largest copper reserves of the industry. Southern Copper Corporation (SCC), our parent company, is listed on the New York and Lima stock exchanges and is owned 85.1% by Grupo Mexico, a Mexican company listed on the Mexican stock exchange. The remaining 14.9% is owned by the international community of investors. Southern Copper Corporation operates mines and metallurgical complexes in Mexico and Peru and has exploration activities in Argentina, Chile, Ecuador, Mexico and Peru.
This clipped from proxy statement.....the part disclosing fees paid to the auditor:
".......... $228,925 for advice on potential financing, related expenses, and review of Ireland office,.........."
Smells to me like part of the stealth buyout plan which would escape from United States taxation on Peru and Mexico profits at the same time.
Mortgage reits were slightly negative today.
Equity reit index VNQ......up 1.43%
Hotel reit CLDT.......up 1.66%
Healthcare reit.......HCN up 1.14%
Mfg housing reit.....SUI up 1.27%
NRF.....pathetic today....up .17%
NSAM just as pathetic...up .17%.....joined at the hip.
That assumes no preferred goes with a spinoff. I expect Healthcare and/or Hotels will take some preferred with it. Other than the coupon and call provision, all of the preferred are pari passu (equal to each other in all respects).
Don't know how it's done, but expect it will be done. Otherwise, at the end of the line (after healthcare, hotels and mfg housing are spun off), you only have mortgage, apartments, industrial and private equity supporting all equity. So much preferred would leave very little value to common, and very little cushion in front of the preferred.
BTW, on a split adjusted basis, the May 2012 dividend was 30 cents. I expect the May 2015 dividend will total 52 cents (41 nrf + 11 nsam). Hmmmmm, 30 to 52 in 3 years....that's a 73% increase. Even if neither dividend increases, it's 50 cents, a 66.7% increase from May 2012.
I do not expect such increases going forward. However 4% annually compounded for 10 years is a 48.02% increase in the 10th year, comparing year 10 to year 1.
What will your preferred dividend be 10 years from now? It will be exactly the same as today. If inflation is exactly 2% per year for 10 years, the purchasing power of 1.00 in the 10th year will be the same as 82 cents today.
As to roc, preferred carries out taxable income first. Preferred is 100% taxable before the first penny to common is taxable. I'm hoping for 50% roc on common for 2015, but I really can't even begin to quantify it. I thought for sure 2014 common would be 100% roc because of the 308 million loss on refinancing the exchangeable notes plus all the new depreciation. I was wrong. But I know as a fact that if any of my common dividend is a taxable ordinary dividend, then 100% of preferred is ordinary.
Your problem ain't gunna go away. Dying holding the preferred makes the income tax go away, but the fact that inflation will eventually erode the purchasing power of both the principal and the never increasing dividend will not.
I first suggested on this board swapping preferred for common in April, 2012. Those who did are very, very happy. Those who did not are in your situation.