They also have a strong dividend yield of 3.85 percent right now, making them a good choice for income investors. Southern Copper also has the lowest production costs in the copper industry at around $0.80 per pound. Copper is a very diverse metal with various applications, from electronics to construction and more. Born in Maine and Living just outside of New York City, Jenna holds an MBA in Finance from the University of Maryland and has been actively trading stocks for nearly 11 years. Copper products account for more than 80% on average of the total sales earned by Southern Copper Corporation.
Copper is a key component in green energy technologies, notably electric vehicle (EV) production. In the short term, these circumstances are likely to result in dramatic price swings, including the projected price spike in 2023. Like many miners, Freeport McMoRan is currently caught in a push-pull scenario.
Today we’ll take a look at why there’s a projected price spike, and some stocks that could stand to benefit over the short term. Growing focus on sustainability may force copper miners to use more expensive methods to extract the metal and could add to the world supply shortage. Top copper stocks for the third quarter include Capstone Copper Corp., Ero Copper Corp., and Ivanhoe Electric Inc., whose shares have returned as much as 153% in the last year. These developments have hit the copper industry that was on a bull run following the rise in demand for the metal as the economy reopened following the pandemic lockdowns. Copper is used in many electrical products like wires, motors, mobile devices, and others. It was taken from Insider Monkey’s database of 895 elite hedge funds at the end of the second quarter of 2022.
Global X Copper Miners ETF (COPX)
As the global economy emerges from the slump driven by the COVID-19 pandemic, the price of copper and its derivative products have increased based on higher anticipated consumption. I want to emphasize this point as this is not a Southern Copper isolated phenomenon due to the perception that the Fed can control inflation with interest rates. Southern Copper’s consensus estimates are only for about $3.50 in 2023, about a 15% YoY decline. However, these EPS estimates should be based on substantially lower inflation readings and a much lower price of copper. We may be looking at persistent high inflation, a copper price well above $5, and a much higher stock price for Southern Copper and other top companies with copper and additional metal exposure. The company’s dividend is around 5.5%, and its technical image appears constructive here.
- Solaris is managed by the Augusta Group that has a track record of creating over CA$4.5 billion in exit transactions over the last 10 years.
- The emphasis on responsible sourcing and ethical supply chains is gaining momentum in the copper mining industry.
- Moody’s Investors Service has revised its worldwide outlook for Metals & Mining from negative to stable due to a slight improvement in business conditions in the US and Europe.
Investors can multiply earnings by leveraging or hedging based on the predictions of the market. This doesn’t mean junior stocks aren’t worth considering, but we’re much more careful when it comes to recommending junior stocks for copper investors. Solaris Resources’ focus is on the acquisition, exploration and development of mineral properties, primarily in South America. The company’s largest mining asset is the Warintza property that covers 26,777 hectares in southeastern Ecuador. Other assets Solaris has an interest in include the Ricardo and Tamarugo properties in Chile and the Paco Orco project in Peru.
For example, Freeport-McMoRan is one of the best stocks on our list because it operates large mining assets that have been proven to contain substantial reserves of copper and other valuable metals. Copper production, then, is an easy way to buy into this base metal instead of buying copper on the precious metals market. The largest copper producers in the world have announced their plan to reduce both direct and indirect greenhouse https://1investing.in/ gas emissions to zero by 2050. This initiative is aimed at attracting investment funds that prioritize environmental concerns. The International Copper Association (ICA) has projected a doubling of copper demand from 2020 levels to 50 million tonnes by 2050. Thus, it has set targets for its members to decrease their direct and indirect emissions by 30% to 40% by 2030, 70% to 80% by 2040, and ultimately reaching zero by 2050.
Buy Gold & Silver
Southern Copper Corporation is the world’s largest copper mining company, with over $69 million in copper reserves. Although share prices took a hit during the pandemic, Southern Copper still managed to provide returns of 64% to investors over a 12-moth period. And with the pandemic slowly winding down, capitalizing on the stocks of this company might be as important now annuity table as ever. If you’re looking for copper mining companies to invest in, the Southern Copper Corporation is the way to go. The Mexico-based company mined almost one million metric tons of copper in 2019. Out of the 25 hedge funds currently investing in the Rio Tinto Group, Fisher Asset Management is the largest with over 12.5 million shares worth more than $971 million.
In this article, we will take a look at the 11 best zinc stocks to buy in 2023. If you want to skip our discussion on the zinc industry, go to the 5 Best Zinc Stocks to Buy in 2023. The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate.
Fastest-Growing Copper Stocks
Dealing in copper futures contracts, the American ETF tracks the daily changes of USCF’s SummerHaven Copper Index Total Return. We want to clarify that IG International does not have an official Line account at this time. We have not established any official presence on Line messaging platform. Therefore, any accounts claiming to represent IG International on Line are unauthorized and should be considered as fake.
Solaris is managed by the Augusta Group that has a track record of creating over CA$4.5 billion in exit transactions over the last 10 years. We see a broad bullish reverse head and shoulders pattern in SCCO here. This stock also bottomed last fall and has been trending higher ever since. We see a series of higher highs and higher lows developing, implying that the bullish trend could continue long term. If Freeport McMoRan did find larger copper deposits than expected, it could position them well for both the immediate shortages and upcoming ones further in the future. The company’s net income has been on a downward trajectory over the past few years, but the decreases are basically incremental.
Best Copper Stocks
The mine is still in the development process, with Rio Tinto in talks with the Mongolian government to expedite the process and get the mine up and running within 2022. Once Oyu Tolgoi is complete, it should increase Rio Tinto’s copper production levels significantly. There are a total of 68 hedge funds investing stakes worth $3.2 billion.
While nickel is expected to have a surplus in 2023, the electric vehicle market’s gradual growth in demand will result in supply deficits. Finally, zinc prices will be supported by limited supply, low inventories, and high energy costs, which will push out high-cost producers. As the name suggests, Southern Copper’s main focus is the production of copper. However, it also mines by-products such as molybdenum, zinc, silver and various other metals. The Mexico-based company also has operations in Peru and, with a market cap of almost $50 billion, is considered one of the world’s largest copper miners. It’s important to note though that proper research and close observation are essential when investing in copper stocks.
However, many analysts may be early in their lower inflation forecasts, as relatively high inflation could persist longer than anticipated. Therefore, we should see sales growth continue at BHP, leading to multiple expansion, and a higher stock price. 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. Several copper-related companies in my All-Weather Portfolio have appreciated considerably recently.
This means you’ll put down a small initial deposit (called margin) to open a larger position. However, because profits and losses are calculated on your full position size and not your margin amount, these can outweigh your deposit significantly. It’s an excellent conductor of electricity, making it vital for electrical applications.
Copper is also widely used in the minting of coins and in industrial machinery such as heat exchangers. Copper salts have historically been used as pigments, while other copper compounds have been used as bacteriostatic agents and fungicides. Copper is also an essential mineral for all living organisms and is found in humans primarily in the liver, muscles and bones. Originally named Solaris Copper, the Vancouver, Canada-based company changed its name to Solaris Resources in December 2019.
Related investing topics
The price of copper should break out to new ATHs this year, powering copper-related equities significantly higher in 2022 and beyond. If you want to see more stocks in this selection, check out 5 Best Copper Stocks To Buy for 2023. Net income has been erratic over the past several years, starting at a loss of $76 million in 2017, peaking at $2.88 billion net income in 2019, and settling down to $1.11 billion in 2021. All of this turbulence is offset by the company’s 96 million ounces of gold reserves, which help stabilize business operations. Annual gross profit has been on the rise at Southern Copper Corp. since 2019 when it brought in $3.79 billion. This number is expected to fall in 2022, but only because the company has made expansive investments in its mines throughout Mexico and South America.
Certain global factors, like labor disputes or the pandemic, can slow down and affect copper supply, especially if mines close. Copper Mountain is also in the development stage of its Eva Copper Project in Queensland, Australia. The Eva project is expected to add another 100 million pounds of copper to the company’s annual production. Copper Mountain is also developing a 210,000-hectare mining parcel in the Mount Isa region of Australia.