Gold and Silver By-Products Turn Copper Production Costs Negative for Southern Copper and Vale

For copper miners Southern Copper Corp. and Vale SA, rising prices of by-products such as gold and silver are creating an unusual situation: the production cost of the red metal has turned negative. This indicates that by-product revenues have more than fully covered copper production costs. In addition to revenue from copper production, the companies are generating significant gains from gold and silver sales. The increase in prices of these by-products has pulled the net cost of copper production below zero, positively impacting the companies' profitability. Analysts expect a notable improvement in the financial performance of copper miners if this trend continues. This is not investment advice.

📊 SCCO — Piyasa Yorumu

■ neutral · 60%

The news highlights that SCCO's gold and silver by-products have turned its copper production cost negative, a positive long-term fundamental factor. However, technical indicators point to overbought territory: RSI at 74.26 is above 70, and the price is well above the 20-day SMA (173.77). The sharp 7.45% rise in the last 24 hours may increase the risk of profit-taking in the short term. Although the MACD is positive, overbought conditions and the rapid rally limit the risk/reward ratio for new entries. Therefore, a neutral stance is recommended due to short-term directional uncertainty.

RSI 14

74.3

MACD

3.49

24h Δ

7.45%

📊 VALE — Piyasa Yorumu

▲ up · 60%

The news indicates that Vale's gold and silver byproducts have turned its copper costs negative, which could positively impact the company's profitability. Technical indicators support this view: RSI at 62 is above the neutral zone, MACD is above its signal line, and the price is above both the 20-day and 50-day moving averages. A 2% increase in the last 24 hours suggests short-term upward momentum. However, the rally may be limited as the RSI is not yet near overbought territory and the price has not tested a strong resistance level.

RSI 14

62.2

MACD

0.08

24h Δ

2.01%

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