As the supply-demand imbalance grows, copper will become the new gold. According to a Bank of America forecast, copper prices might rise to $20,000 per metric ton in the next three years. On the other hand, the copper sector has been battered in recent weeks as the US prepares to raise interest rates, sending the dollar price up to and lowering demand for the metal. China has decided to release the metal from its national reserves to regulate commodity prices, dealing a double blow to the sector.
These changes had harmed the copper sector, which had been on a roll after a surge in demand when the economy reopened following the pandemic lockdowns. Copper is utilized in various electrical items, including cables, motors, and mobile devices. It's also employed in consumer goods and residential interiors. Copper is fast being utilized as the demand for electric cars grows. It provides durability, high conductivity, and efficiency and is used in EV vehicles, charging stations, and other EV related items.
Freeport-McMoRan Inc. (NYSE: FCX), Rio Tinto Group (NYSE: RIO), and Newmont Corporation are among the firms that are at the forefront of copper production and should benefit from the metal's predicted long-term growth (NYSE: NEM). Freeport-McMoRan Inc. (NYSE: FCX) CEO Richard Adkerson revealed that the company was seeking approval for expansions at US-based copper mines to meet rising demand, particularly because copper is a key component of the US government's new climate programs.
Barrick Gold Corporation (NYSE: GOLD)
Barrick Gold Corporation (NYSE: GOLD) is a gold and copper mining company that focuses on extraction and development. It operates in over ten countries all over the globe. It ranks tenth on our list of the top ten copper stocks to purchase. Over the last three months, the stock has returned more than 2.8 percent to investors. A rise in prices helped the company raise income from copper mines in Chile, Saudi Arabia, and Zambia by 31% quarter over quarter in the first quarter of 2021.
Mark Bristow, CEO of Barrick Gold Corporation (NYSE: GOLD), informed the press on June 4 that the firm wanted to resume a mining operation in Papua New Guinea (PNG) under a new contract that would utilize the project's resources in a joint venture with PNG stakeholders.
In the first quarter of 2021, 49 hedge funds in database owned holdings in Barrick Gold Corporation (NYSE: GOLD) worth $1.3 billion, down from 53 in the previous quarter worth $1.7 billion.
Barrick Gold Corporation (NYSE: GOLD), like Freeport-McMoRan Inc. (NYSE: FCX), Rio Tinto Group (NYSE: RIO), and Newmont Corporation (NYSE: NEM), is one of the top copper companies to purchase right now.
GoodHaven Capital Management, an asset management business, featured a few equities in its Q4 2020 investor letter, one of which was Barrick Gold Corporation (NYSE: GOLD). Here's what the fund had to say:
"Barrick's recent performance has met or exceeded our expectations. Barrick has been gradually growing its dividend, which should continue until they make a substantial purchase (they want additional copper assets) or gold prices fall significantly. During periods of higher gold prices, we may also expect extraordinary dividends. We anticipate Barrick's normalized free cash flow to be above $1.60 per share at current gold prices. The corporation is now debt-free. We expect lots of potential and not much downside in the absence of a gold crash. The supply/demand background is mostly absent from public conversations about gold, although it is potentially intriguing.
"Gold is among the rarest metals in the earth's crust, and most of the easier to get at ore has already been extracted," according to the Wall Street Journal (8/16/20). What's left is more difficult to locate and remove..." According to the World Platinum Council, a worldwide supply and demand mismatch of 1.2 million ounces is expected. Currency worries, excessive debt, and continued negative real interest rates are all possible macro tailwinds that might enhance the value of an alternative currency like gold. While the stock did well throughout the year, it struggled in the second half and is now more reasonably valued."
Teck Resources Limited (Teck) (NYSE: TECK)
Teck Resources Limited (NYSE: TECK) is a mining company that specializes in copper, zinc, and other metals. It's number nine on our list of the top ten copper stocks to purchase. The stock has returned more than 102 percent to investors in the last year. Australia, Chile, Ireland, Mexico, Peru, Turkey, and the United States are just a few nations where the company has mining interests. With copper mines in Canada and South America, the company is one of the world's largest copper producers.
Teck Resources Limited (NYSE: TECK) was raised to Buy from Hold on May 26 by financial adviser Deutsche Bank, with a price objective of $30, based on the QB2 copper project's expansion potential and the medium-term returns it projected.
With 9.3 million shares worth more than $179 million, Boston-based investment company Arrowstreet Capital is the largest stakeholder in Teck Resources Limited (NYSE: TECK) among the hedge funds monitored by Insider Monkey.
Teck Resources Limited (NYSE: TECK), like Freeport-McMoRan Inc. (NYSE: FCX), Rio Tinto Group (NYSE: RIO), and Newmont Corporation (NYSE: NEM), is one of the top copper companies to purchase right now.
Vale S.A. (NYSE: VALE)
Vale S.A. (NYSE: VALE) is a metals mining business that primarily produces iron ore, nickel, and other metals. In addition to mining and development, the company is one of Brazil's biggest and sells logistics services relating to these metals. It ranks eighth on our list of the top ten copper stocks to purchase. Over the last year, the company's stock has returned more than 109 percent to investors, and the company generated over 360,000 metric tons of copper last year.
After local authorities evacuated residents from the Xingu dam site, Vale S.A. (NYSE: VALE) suspended operations at two mines in the Minas Gerais area of Brazil on June 4. Officials in Brazil claim the dam is on the verge of crumbling, although Vale rejects this.
With 38 million shares worth more than $661 million, Washington-based investment company Fisher Asset Management is the largest stakeholder in Vale S.A. (NYSE: VALE) among the hedge funds monitored by Insider Monkey.
Vale S.A. (NYSE: VALE) is one of the top copper stocks to buy right now, with Freeport-McMoRan Inc. (NYSE: FCX), Rio Tinto Group (NYSE: RIO), and Newmont Corporation (NYSE: NEM).
The BHP Group (NYSE: BHP)
BHP Group (NYSE: BHP) is a natural resources company based in Australia with holdings in petroleum, copper, iron, and coal. The company has a copper mine in Chile and other copper-related properties worldwide. In 2020, it produced about 1.3 million tons of copper. In South Australia, the company has a copper mine. It's number seven on our list of the top ten copper stocks to purchase. Over the last year, the stock has returned more than 43 percent to investors.
BHP Group (NYSE: BHP) shares gained about 1% on June 11 after the company stated that employees at a copper mine in Chile had signed work contracts, putting an end to rumors of a strike that might have halted output at the mine and globally.
With 7.9 million shares worth more than $553 million, Washington-based investment company Fisher Asset Management is the largest stakeholder in BHP Group (NYSE: BHP) among the hedge funds monitored by Insider Monkey.
BHP Group (NYSE: BHP) is one of the top copper companies to purchase right now, with Freeport-McMoRan Inc. (NYSE: FCX), Rio Tinto Group (NYSE: RIO), and Newmont Corporation (NYSE: NEM).
Turquoise Hill Resources Ltd. (NYSE: TRQ)
Turquoise Hill Resources Ltd. (NYSE: TRQ) specializes in mineral exploration and development. It ranks sixth among the top ten copper stocks to purchase right now. The stock has returned more than 142 percent to investors in the last year. Copper, gold, and silver activities are the company's main focus.
The company produced 149,631 tons of copper in 2020, above expectations of 140,000 tons.
Turquoise Hill Resources Ltd. (NYSE: TRQ) reported earnings per share of $1.18 for the first quarter of 2021 on May 12, exceeding market forecasts by $0.63. Revenue increased by 302 percent year over year to just over $520 million.
Turquoise Hill Resources Ltd. (NYSE: TRQ) was owned by 13 hedge funds in database at the end of the first quarter of 2021, up from 12 hedge funds worth $374 million the previous quarter.
Turquoise Hill Resources Ltd. (NYSE: TRQ), like Freeport-McMoRan Inc. (NYSE: FCX), Rio Tinto Group (NYSE: RIO), and Newmont Corporation (NYSE: NEM), is one of the top copper companies to purchase right now.
Hudbay Minerals Inc. (NYSE: HBM)
Hudbay Minerals Inc. (NYSE: HBM) is the fifth-best copper stock to purchase right now, according to our ranking. The stock has returned more than 116 percent to investors in the last year. It is a Canadian mining company specializing in copper and zinc production, and it's active in both North and South America. For nearly nine decades, the firm has mined for precious metals in the Flin Flon region of Manitoba. Copper, zinc, gold, and silver are all found in the vicinity.
Hudbay Minerals Inc. (NYSE: HBM) was upgraded by investment advisors Bank of American to Buy from Underperform with a price target of $9.5 on April 6, citing a better outlook for the copper industry and an anticipated improvement in metal prices.
According to Insider Monkey, GMT Capital, an Atlanta-based investment company, is the largest stakeholder in Hudbay Minerals Inc. (NYSE: HBM), with 37 million shares valued at more than $259 million.
Newmont Mining Company (NYSE: NEM)
The Newmont Corporation (NYSE: NEM) is the world's biggest gold mining business. Other metals with which it is involved include copper and zinc. Apart from the United States, the company has operations in Canada, Mexico, the Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, and Ghana. The company produced over 56 million pounds of copper in 2020, a minor decrease from the previous year due to the COVID-19. Copper output in 2019 was 79 million pounds. It ranks fourth on our list of the top ten copper stocks to purchase right now.
On May 17, Newmont Corporation (NYSE: NEM) was one of the best-performing stocks of the day, gaining about 5% during a stock market bull run for the gold and mining sector. In mid-May, gold prices reached a year-to-date high before falling in the weeks following.
In the first quarter of 2021, 43 hedge funds in database owned holdings in Newmont Corporation (NYSE: NEM) worth $994 million, down from 50 in the previous quarter worth $1.2 billion.
First Eagle Investment Management, an asset management business, featured a few equities in its Q1 2020 investor letter, with Newmont Corporation (NYSE: NEM) being one of them. Here's what the fund had to say:
"The gold price supported the stock price of Newmont Corporation, a Colorado-based miner with high-quality assets in favorable mining jurisdictions in North America, South America, Australia, and Africa." Newmont is well positioned to endure the economic difficulties associated with the coronavirus pandemic, with what we consider an exceptional portfolio of assets, strong management team, stable bank sheet, and history of producing free cash flow."
Group Rio Tinto (NYSE: RIO)
Rio Tinto Group (NYSE: RIO) is the world's second-biggest metals and mining company, operating in copper, aluminum, gold, silver, and other precious metals. It comes in third on our list of the top ten copper stocks to purchase. The stock has returned more than 46 percent to investors in the last year. The company produced almost 527,900 metric tons of copper in 2020. The corporation also has large uranium and iron mining activities.
Rio Tinto Group (NYSE: RIO) stated on June 15 that it would collaborate with an Australian company to investigate the use of hydrogen rather than natural gas in metal refineries. The move is part of the company's larger aim to minimize fossil fuel emissions.
With 12.5 million shares worth more than $971 million, Washington-based investment company Fisher Asset Management is the largest stakeholder in Rio Tinto Group (NYSE: RIO) among the hedge funds monitored by Insider Monkey.
Freeport-McMoRan Inc. (NYSE: FCX)
Freeport-McMoRan Inc. (NYSE: FCX) is a copper, gold, silver, and other metals exploration and mining business based in the United States. Morenci, Bagdad, Safford, Sierrita, Miami, Chino, and Tyrone are among the company's seven open-pit copper mines in North America. It is ranked number two on our list of the top ten copper stocks to purchase. The stock has returned more than 233 percent to investors in the last year.
Due to the scarcity of major copper mines, Freeport-McMoRan Inc. (NYSE: FCX) CEO Richard Adkerson told Bloomberg on May 27 that copper was a long-term and incredibly robust industry that would gain from substitution and more recycling.
In the first quarter of 2021, 68 hedge funds in database owned holdings in Freeport-McMoRan Inc. (NYSE: FCX) worth $3.2 billion, down from 71 in the previous quarter worth $2.6 billion.
Southern Copper Corporation (NYSE: SCCO)
Southern Copper Corporation (NYSE: SCCO) is a mining firm established in Mexico specializing in copper production. It comes first on our list of the top ten copper stocks to purchase right now. In the last year, investors have received gains of more than 64% on the company's stock, and copper goods make for more than 80% of the company's overall sales value. The firm extracted 993,822 tons of copper in 2019.
Southern Copper Corporation (NYSE: SCCO) is a good choice for income investors. The corporation announced a quarterly dividend of $0.70 per share on May 7, an increase of about 17% over the previous payment. 3.85 percent was the future yield.
With 3.9 million shares worth more than $270 million, Washington-based investment company Fisher Asset Management is the largest stakeholder in Southern Copper Corporation (NYSE: SCCO) among the hedge funds monitored by Insider Monkey.
Copper-fueled expansion
More copper is needed to help the globe move to lower-carbon energy sources like renewable energy. In the following years, demand for the metal should skyrocket. Increased demand could encourage more copper expansion projects from the world's leading mining corporations, enabling them to boost output while benefiting from higher pricing.
Copper miners should be able to enhance their cash flow due to increased output and better prices, providing them more money to pay dividends and repurchase shares, boosting their overall returns. The Copper Mining Stocks is appealing to investors because of its upside potential.
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