Investors can also buy copper directly by investing in the underlying commodity, which may be done by purchasing copper bullion bars or coins. Although not as straightforward as buying coins or bullion, investors may get exposure to the value of copper by buying futures. “The acceleration towards lowering carbon output through alternative energy sources has become a top priority around the world, particularly in the transportation sector.
Although investors looking for short-term gains may be able to make some money, with the expansion plans many of these copper companies have in place, long-term investors are likely to see better profits. By 2021, according to the World Bank, copper’s spot price will average $8,500 per metric ton. The cost is anticipated to drop to $7,500 in 2022 and then rise to $8,250 by 2035.
That mine will add 320 million tons to its annual production capacity, doubling its copper output. The company has the resources to expand to as much as 1.5 billion tons of annual copper production over the next decade. If you’re looking for copper mining companies to invest in, the Southern Copper https://bigbostrade.com/ Corporation is the way to go. The Mexico-based company mined almost one million metric tons of copper in 2019. The largest of these shareholders is GMT Capital with 37 million shares worth more than $259 million. They’re a Canadian mining firm that focuses mostly on the mining of zinc and copper.
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It has diversified operations that span the globe and mines that extract everything from copper to iron ore to gold to coal. Specifically for its copper business, BHP tallied more than 1.5 billion tonnes of the metal in fiscal year 2022 alone. For investors looking to play copper but not go all-in on a smaller miner with volatile operations, world-class BHP is a good investment to consider. It’s also worth noting that while payouts can be volatile, the trailing yield of 9.5% from this mining giant also adds to its appeal. Freeport-McMoRan recorded 1.53 million metric tons (MT) of copper production in 2022.
The company has a reputation for being good to its stockholders, announcing it issued a record $7.2 billion of distributions in Q2 of this year (dividends and stock buybacks combined). Despite the volatility in crude oil prices, Chevron still managed to produce a record 772,000 barrels of oil equivalent per day at its Permian Basin operations in Texas during Q2. Copper saw historically high prices in the first half of 2022, and although it fell in the second half, 2023 has seen them move back up. In Q1 and into Q2, copper prices on the COMEX ranged between US$3.74 and US$4.27 and for the same time period on the LME, copper moved between US$8,200 and US$9,436. Diversified base metals miner Lundin Mining has properties in a variety of locations across the world. Operating in Argentina, Brazil, Chile, Portugal, Sweden and the US, the company produces copper, zinc, gold and nickel.
As clean energy solutions continue to spread across the country, the demand for the electricity-conducting metal is growing dramatically. In fact, some experts suggest that copper demand will more than double by the year 2030. Lundin Mining is a Canadian firm specializing in copper producers, zinc, gold, nickel, and other metals, as well as mineral property development in Chile, Brazil, Portugal, Sweden, and the United States. In the United States, it is also available over-the-counter (OTC) under the ticker LUNMF. In addition, Lundin Mining announced in late April that it had completed its purchase of Josemaria Resources Inc. The project is huge for furthering the company’s copper production at a time it’s in significant demand.
Recently, the firm announced a partnership with an Australian firm in a shift towards the usage of hydrogen instead of natural gas in their refineries. This is to reduce their CO2 emissions and curb the negative views the public has about mining companies being environmentally irresponsible. Founded in the United States, the firm operates in over 10 countries. When it comes to mining copper, it’s hard to compete with a company that produced 56 million pounds of it even during the Covid-19 pandemic.
Zijin Mining Group (SHA:
Zinc-based batteries present a promising alternative due to their advantageous features. One key feature is that zinc-based batteries have lower carbon emissions compared to their counterparts. Additionally, Zinc batteries are considered to be safer with a prolonged lifespan and a lower cost of manufacturing. According to Polaris Market Research, the end-market size for zinc-based batteries is expected to expand from a size of $9.46 billion in 2022 to $12.56 billion by the end of this decade.
This article will discuss the best copper stocks on the market and why you should invest in them. Both Wolfe Research and Morgan Stanley have high hopes for the company. This quarter, famous investors Wolfe started the copper company at Peer Perform with a $62 price target. Meanwhile, Morgan Stanley boosted its Underweight rating to Equalweight and kept its $55 price target.
- Freeport McMoran also invested $850 million in the Lone Star development project.
- Not only is Newmont the No. 1 producer of gold, but it also has a strong portfolio of copper.
- Demand for copper likely will rise steadily, as it is a critical element in the energy transition because the metal is used in electric vehicles, charging stations, wind turbines, and solar panels.
All of this turbulence is offset by the company’s 96 million ounces of gold reserves, which help stabilize business operations. BHP mines more copper than Mexico-based Southern Copper Corp., but the smaller company is primarily focused on this specific metal. As you learn about the copper market, remember that speculative investing is typically a quick way to lose money.
Therefore Rio’s earnings will likely increase more than anticipated, and the stock should run higher. Copper hit an all-time high (“ATH”) around $5 recently and could soon break out to new ATHs. I’ve been bullish on copper since the latest leg of the commodities bull market began in 2015, and we could see a significant move higher soon.
Anglo American (LSE:AAL,OTCQX:AAUKF)
This is due to copper’s widespread applications in all sectors of the economy, as mentioned, and also in construction, factory equipment, and electronics. Still, as electric vehicle technology improves, the need for copper in these products—and, consequently, the overall demand for the metal—may be reduced. Copper stocks as a group, represented by the benchmark Global X Copper Miners ETF (COPX), rose 38% in the last year, compared with the Russell 1000 Index’s 14% improvement.
- If you’re looking to play these trends, here are a handful of dedicated copper investments that may be worth a look in 2023.
- There are reasons to speculate that copper value may go up over the long term too, though to what degree is still unknown.
- Last year, the company delivered $4.40 in EPS, illustrating a TTM P/E ratio of about 16.
Commodity-based stocks will never be as safe as a Treasury bill, but some of them can be less volatile than the overall market. Rio Tinto is a great example, as it has a beta of just 0.68, making it about 30% less volatile than the market as a whole. Over the past five years, the stock has only returned about 10%, but its fat dividend yield — currently 8.08% — has no doubt kept investors happy.
In addition to metals mining, BHP provides exposure to coal, petroleum, and other commodities that should do well in the current high inflation economic environment. Much like Rio’s revenues, BHP’s YoY sales were up by more than 40% in 2021. This year, the company should bring in about $7 in EPS, putting its forward P/E ratio at only 11.
The Investing News Network’s guide on copper refining goes into further detail about how those processes work. Once these processes are complete, the copper is concentrated to up to 99.99 percent purity. Once copper is mined, the ore goes through multiple steps to reach a market-ready state. First, the ore is ground to roughly separate the rock from the copper, as copper typically only makes up 1 percent of the mined rock.
Earnings like this more than make up for the sad fact that the company does not engage in paying out dividends. Instead, we just published the full details on a small Texas-based oil company that could hand you gains of 100% or more as the oil crisis escalates. The shutdown of a major energy pipeline to deter Russia… limited production capacity by OPEC… and Biden’s determination to rely on alternative energy in 2022 are adding up to one thing. Sadly, the company does not offer any dividend which might deter you if you’re looking to acquire a source of passive income.
Major diversified miner Glencore produced 1.01 million MT of copper in 2022. In the Democratic Republic of Congo, the Swiss-based company operates the Katanga and Mutanda copper-cobalt mines. Its Australia operations are the Mount Isa mines, which produce copper anode material, silver/lead bullion and zinc concentrates, and the CSA underground copper mine. Additionally, Glencore holds interests in the Collahuasi mine (44 percent) in Chile and the Antamina mine (33.75 percent) in Peru. Although the red metal is only one of the resources BHP produces, the company has been increasing its foothold in the copper market through exploration and development, as well as through acquisitions.
Ero Copper (TSX:ERO)
If you’re worried about beating inflation, another tool you could apply to your portfolio is the Precious Metals Kit from Q.ai. There are reasons to speculate that copper value may go up over the long term too, though to what degree is still unknown. Copper is a key component in green energy technologies, notably electric vehicle (EV) production. Southern Copper is currently the fifth-largest copper producer in the world.
Invest in up to 20 stocks and ETFs by adding a single Kit to your portfolio. Our AI will rebalance your investments on a weekly basis to optimize performance. All you have to do is build a portfolio of Kits and leave the rest of portfolio management to AI. Unsurprisingly, Barrick Gold Corporation’s bread and butter is gold, but it also dabbles in copper mining.
As a result, copper is the third most utilized metal, behind steel and aluminum, owing to its low cost and versatility. However, due to their increasing usefulness, precious metal is one of the most anticipated commodities in the next several years. Morgan Stanely’s analysts maintain Equal-Weight; Stifel started the mining company with a Buy.
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What’s more, metals like copper are in high demand not only for EVs but also for hybrid vehicles. Then you’ve got to consider that ancillary platforms (I.E., charging stations) will also increase copper demand. Wood Mackenzie estimates by 2030, there will be over 20 million EV charging points globally, consuming 250% more copper than in 2019. In an effort to strengthen its position as one of the world’s top copper producers, the company is advancing its Quellaveco copper project in Peru. Once in operation, the mine is expected to deliver around 300,000 MT per annum of copper on average in the first 10 years.