Copper Stocks to Consider in 2022

Copper has been one of the most successful precious metals of the past five years, with increasing demand for the metal. The best copper stocks in 2022 are gaining ground as critical sectors like EVs demand it.

Furthermore, demand does not appear to be slowing down anytime soon. In a research note, Goldman Sachs (NYSE: GS) says copper prices are “poised for the next leg higher” as growing demand is fueling prices. In addition, the firm is raising its long-term outlook for gold with the anticipated electric vehicle (EV) injunction to stay strong for at least ten years.

Last year, China released 50,000 tons of copper to keep prices from skyrocketing. Copper, on the other hand, is holding fast. 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.

Best Value Copper Stocks

The numbers below are the lowest-12-month trailing price-to-earnings (P/E) ratios for top copper stocks. A low P/E ratio reveals that you’re paying less for each dollar of profit generated, which is good because profits may be returned to shareholders in the form of dividends and buybacks.

Ero Copper Corp.:

Ero Copper is a Canadian-based mining company that produces and sells copper, gold, and silver in mining regions, mainly in Brazil. In addition, the firm has shares that trade on the New York Stock Exchange (NYSE) in the United States under the ticker ERO.

Lundin Mining Corp.:

Lundin Mining is a Canadian firm specializing in copper, zinc, gold deposits, nickel, and other metals and mineral property development in Chile, Brazil, Portugal, Sweden, and the United States. It is also available over the counter (OTC) in the United States, with the ticker LUNMF. In late April, Lundin Mining announced that it had completed its purchase of Josemaria Resources Inc.

 In December 2021, the company announced its intention to acquire Josemaria for around CA$625 million ($485 million).

Copper Mountain Mining Corp.:

Copper Mountain Mining is a Canadian-based copper mining company. The Copper Mountain mine, which the firm owns, is located in southern British Columbia. In early May, Copper Mountain Mining named Don Strickland as a director of corporate responsibility (COO) from executive vice president of sustainability. Strickland will now lead Operations and Technical services for the company, in addition to Sustainability and People functions.

Fastest Growing Copper Stocks

According to a growth model, the top 10 copper stocks assign each firm a 50/50 split of its most recent quarterly YOY percentage revenue growth and most recent quarterly YOY EPS growth. Sales and earnings are both essential aspects of a firm’s success. As a result, assessing firms solely on one growth statistic makes them vulnerable to accounting oddities (such as tax law changes or restructuring charges) that may make one figure greater than the other unrepresentative of the company. Therefore, we excluded companies with quarterly EPS or revenue-growth rates of more than 2,500% as outliers.

Lundin Mining Corp.:

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.

First Quantum Minerals Ltd.:

The firm’s name is derived from the first three letters of its primary metals: copper, nickel, gold, silver, zinc, and acid. The first Quantum is a gold mining company that operates mines in Turkey, Spain, Finland, and Zambia. It also has OTC shares on the American over-the-counter market under the ticker FQVLF. In early May, GeoInvesting announced the appointment of Tristan Pascall as CEO (CEO), replacing Philip Pascall, who is retiring from the position but continuing to serve on the board.

Freeport-McMoRan Inc.:

Freeport-McMoRan mines copper, gold, and molybdenum. The firm has mining sites in both North and South America and Indonesia.

Copper Stocks with the Most Momentum

As determined by our study, these copper stocks delivered the most significant returns or had minor declines in total return over the previous year.

Turquoise Hill Resources Ltd.: 

Turquoise Hill Resources is a Canadian mining firm exploring and developing mineral and metal sites in Asia and Australia. The company’s primary asset is southern Mongolia’s Oyu Tolgoi copper and gold mine.

First Quantum Minerals Ltd.:

The firm’s name is derived from the first three letters of its primary metals: copper, nickel, gold, silver, zinc, and acid. The first Quantum is a gold mining company that operates mines in Turkey, Spain, Finland, and Zambia. It also has OTC shares on the American over-the-counter market under the ticker FQVLF. In early May, GeoInvesting announced the appointment of Tristan Pascall as CEO (CEO), replacing Philip Pascall, who is retiring from the position but continuing to serve on the board.

Southern Copper Corp.:

Copper, molybdenum, zinc, and precious metals are all mined by Southern Copper Corporation. The company has mining operations in Peru and Mexico. On June 1, a fire erupted at Peru’s Los Chancas mine operated by Mining Pacific Investments (Mining). A fire broke out at another company’s mine in the area around the same time. Two significant blazes in the Peruvian Amazon have been reported just days apart as environmental activists escalate their calls for more excellent compensation from the mining sector.

Other Copper Stocks to consider:

BHP Group (BHP)

BHP is a large international natural resource producer based in Australia. It extracts copper, iron ore, nickel, metallurgical coal, and potash. It also produces oil and natural gas. However, it will combine those operations with Woodside Petroleum (ASX: WPL) in a merger expected to be completed by 2022.

BHP Billiton is a multinational mining and metals company based in Australia. It has numerous copper mines in Chile and one in Australia. In 2021, the company’s operations generated 1.6 million tons of copper.BHP is investing millions of dollars to increase copper production to meet growing demand. For example, BHP’s Spence copper mine in the Chilean desert was expanded at the end of 2020. The expansion will add 185,000 metric tons of production annually over the next decade and extend the mine’s life for 50 years. In addition, BHP has established several long-term exploration partnerships and early-stage growth opportunities to meet anticipated increases in copper demand in the coming years.

Glencore (GLNCY)

Glencore is a multinational commodities trader specializing in metals, minerals, energy goods, and agricultural products. In addition, the company’s marketing arm provides sourcing, logistics, transportation, storage, and financing to commodity producers and consumers worldwide. The company’s 2013 acquisition of diversified miner Xstrata boosted its position as one of the world’s principal commodity producers. The main products are thermal coal, coking coal, copper, zinc, nickel, and ferroalloys.

Rio Tinto (RIO)

Turquoise Hill Resources (TRQ)

Turquoise Hill Resources Ltd. (NYSE: TRQ) is a mineral exploration and development firm. It ranks sixth on our list of the top 10 copper stocks. The stock has delivered investors more than 142 percent gains in the previous year. The firm focuses on copper, gold, and silver mining operations. The company produced 149,631 tons of copper in 2020, exceeding expectations of 140,000 tons.

Boliden AB (BOLIF)

Boliden is a high-tech metal producer with its mines and smelters that work over the long term to guarantee society’s supply of base and precious metals by mining ore (minerals) and producing and delivering high-quality metals to industry.

Teck Resources (TECK)

Teck Resources Limited is a mining and development firm in the mineral sector. Steelmaking coal, copper, zinc, and energy are divided into business units dedicated to these industries. In addition, the company offers lead, silver, molybdenum, and other metals, chemicals, and fertilizers. It concentrates on its project operations in Canada, Peru, Chile, and the United States. The firm was founded on September 24, 1951, and is based in Vancouver, Canada.

OZ Minerals (OZMLF)

OZ Minerals Ltd. is a copper-centered multinational corporation. It has the following divisions: Prominent Hill, Carrapateena, Carajás, Exploration & Development, and Corporate. The Prominent Hill branch is engaged in the mining and processing high-grade underground ore containing copper, gold, and silver and open-pit ore from stockpiles.

Zijin Mining Group (ZIJMF)

Zijin Mining Group Co., Ltd. is a mining firm specializing in the exploration, mining, and smelting of gold, copper, zinc, and other metals. The primary purpose of IDB Resources is to explore, acquire, and develop mineral resources; mining development capabilities; smelting and processing to enhance the industrial chain; technology research and development; and integration of mining and finance, trade, and logistics. Jing He Chen launched the firm on July 15, 1986, in Longyan, China.

Copper Mountain Mining Corp (CPPMF)

Copper Mountain Mining Corp. is a mineral exploration, development, and operations firm. The price of a bullion bar is based on the value of its precious metals. Some investors are interested in the copper mountain mine, Eva Copper, New Ingerbelle, and Cameron copper projects. The firm was established on April 20, 2006, and is incorporated in Vancouver, Canada.

Capstone Copper Corp (TSE: CS)

The Pinto Valley copper mine, located in Arizona, US, and the Cozamin copper-silver mine in Zacatecas State, Mexico, are operated by Capstone Mining. In addition, Capstone owns 70% of Santo Domingo, a large-scale, fully permitted copper-iron-gold project in Chile with Korea Resources Corporation. Capstone’s strategy is to optimize operational and asset performance in politically stable mining-friendly regions in the Americas.

Solaris Resources (SLSSF)

Solaris Resources Inc. is a mineral property development, acquisition, and exploration company. It concentrates on searching for copper, molybdenum, gold, lead, zinc, and silver. The company’s main project is the 100 percent owned Warintza Copper and Gold Project in Ecuador, which covers 268 km2 of territory and comprises eight metallic mineral concessions.

Final Thoughts

The copper industry comprises firms involved in the search for, extraction, development, and production of copper, one of the most widely utilized metals. Copper demand is closely linked to the economy since it is employed in various fields, including construction, electronics, industrial equipment, transportation, power generation, and transmission. The world’s most prominent firms in the area include Freeport-McMoRan Inc. of the United States, Australia-based OZ Minerals Ltd., and China-based Zijin Mining Group Co. Ltd.

FAQs

How to buy copper stocks?

The copper market offers several opportunities for those who wish to get involved. Exchange-traded funds (ETFs), futures, and mining stocks are popular ways to capitalize on copper, just like other commodities. However, in the case of a copper miners’ ETF, investors may indirectly gain access to the copper market by investing in funds focused on copper or copper-mining corporations.

Copper futures contracts allow investors to participate in the market at a lower risk than other metals, according to InvestingAnswers: “Futures allows buyers and sellers to ‘lock in’ the price at which they buy or sell an asset in the future. This creates a little bit of a safety net for those trading.”

Lastly, there are copper stocks, which can be hazardous but are nevertheless one of the most direct ways to the market. Investors may buy shares in firms that deal with copper mining, production, and exploration and watch how their success rates change and the copper price’s ups and downs.

What are the best copper stocks?

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.

• Freeport-McMoRan Inc. (FCX)
• Glencore Plc (GLNCY)
• BHP Group Ltd. (BHP)
• Teck Resources Ltd. (TECK)
• Southern Copper Corp. (SCCO)
• Steel Dynamics Inc. (STLD)
• Nucor Corp. (NUE)

Is copper a good investment for 2022?

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.

Is there a copper ETF?

Two copper ETFs and one copper ETN trade on US exchanges. A copper ETF may hold Copper futures or stocks of mining companies, but a copper ETN is an uncollateralized debt instrument that can have copper futures.

Who is the largest copper producer?

Chile is not only the world’s largest integrated copper producers but also home to three of the world’s ten biggest copper mines based on capacity. The Escondida mine, which is located in Chile’s Antofagasta Region’s Atacama Desert, comes first.