15 Best Copper Stocks to Buy in 2022

As the trading week begins, investors may be considering the best copper stocks to purchase today. This would be true for the most part, as more investors are exiting less defensive stocks in the market. As a result, all of this is a result of deteriorating Covid conditions and impending interest rate hikes, which are choking growth. You may be asking why Copper is such a massive concern for newer investors. Told, Copper is currently one of the world's hottest commodities, and this is due to its critical position in a variety of booming areas. Copper is prevalent and in high demand, from critical infrastructure to electric vehicle (EV) components.

Similarly, the price of the precious metal has risen and continues to grow as a result of supply chain constraints, depleting reserves, and the continuous shift to sustainable energy. For starters, investors in this industry have a plethora of mining firms to consider. Consider BHP Group (NYSE: BHP). This international mining company annually produces millions of tonnes of Copper. Even gold corporations such as Newmont (NYSE: NEM) are participating in the copper market.

By and large, the case for copper stocks continues to strengthen, and it appears as though businesses are more than willing to comply. After reading thus far, you may have developed an interest in the industry. In that scenario, here are the 15 best copper stocks to buy in 2022.

1. BHP Group

BHP Group is a significant global resource company headquartered in Australia. Copper, iron ore, nickel, metallurgical coal, and potash are all mined by the company. Additionally, it generates crude oil and natural gas. However, in a deal expected to complete in 2022, it integrates those businesses with Woodside Petroleum (ASX: WPL).

BHP owns and runs several copper mines in Chile and one in Australia. In 2021, its operations produced 1.6 million tons of Copper. It is heavily investing in expanding its copper production in order to fulfill growing demand. By the end of 2020, BHP would have completed an expansion of its Spence copper mine in Chile's desert. Over the next decade, the expansion will add 185,000 metric tons of yearly production and extend the mine's life by 50 years. Additionally, BHP has established many long-term exploration partnerships and early-stage expansion possibilities to meet the anticipated increase in copper demand in the future years.

Increased dividend payments should be possible as a result of the company's increased copper production. BHP targets a dividend payout ratio of at least 50% of cash flow, and it frequently pays supplementary dividends, and repurchases share with its excess cash.

2. Freeport-McMoRan

Freeport-McMoRan is one of the world's largest publicly listed producers of Copper. Additionally, it produces gold and molybdenum, an element utilized in the manufacture of high-strength steel alloys.

Freeport's crown jewel is the Grasberg mine in Indonesia, one of the world's most excellent single sources of Copper and gold. Additionally, Freeport runs large-scale operations in Arizona and Peru. In 2021, the company will produce 3.8 million pounds of Copper.

At the end of 2021, Freeport completed a slope of more profound mining activities at Grasberg, adding 1.5 million pounds of copper and 1.6 million ounces of gold to yearly production. Other longer-term development drivers for the corporation include expansions in Arizona and Chile.

Copper production growth should support increased cash distributions to shareholders. Freeport has established a mechanism for allocating up to 50% of excess cash flow to shareholder returns, including dividends and share repurchases.

3. Teck Resources

Teck Resources is a Canadian-based diversified mining business. It is a copper, zinc, and steelmaking coal producer. Additionally, it is a shareholder in oil sands mining operations.

Copper will account for 44% of Teck's total profit in 2020. From four mines in Canada and South America, it produced 276,000 metric tons of Copper.

In the future, the business intends to produce industry-leading growth in copper production, and it is on target to grow production by 102% by 2023. The primary driver is the company's Quebrada Blanca Phase 2 (QB2) project in northern Chile, one of the world's top copper producers. The project is anticipated to begin in the second half of 2022. Along with QB2, Teck is developing several more copper expansion projects to help fulfill future global copper demand.

Teck anticipates that QB2 will result in considerable profits growth, enabling the business to distribute additional cash to shareholders through dividends and share buybacks. It intends to return between 30% and 100% of its available cash flow to investors once QB2 is operational. 

4. Southern Copper

Southern Copper is one of the world's largest fully integrated copper producers. It is a copper miner with operations in Mexico and Peru. Grupo Mexico, a conglomerate focused on mining, transportation, and infrastructure, owns the bulk of the corporation.

Southern Copper is one of the largest companies of copper products in the whole world. Additionally, it owns the largest copper deposits, giving it an excellent opportunity to increase copper production.

The corporation anticipates a drop in production in the short term as legacy reserves dwindle. However, the output is expected to peak in 2022. Southern Copper anticipates strong production growth in the long term. By 2030, it expects to increase production by 73% above the 2020 level. The corporation has approved several large-scale expansion projects expected to support long-term copper growth. It anticipates investing an average of $1.9 billion per year over the next decade to expand copper production.

Southern Copper intends to continue distributing a large share of its revenues in dividends, even with additional investments.

5. Rio Tinto

Rio Tinto is a multinational mining conglomerate headquartered in the United Kingdom. Copper Aluminum, Copper, diamonds, gold, industrial minerals, iron ore, and uranium are all produced by the company. Additionally, it produces borates, lithium, salt, and titanium dioxide.

The copper business of the corporation is comprised of two large-scale mining operations. Mongolia's Oyu Tolgoi deposit is one of the world's largest known copper and gold resources. Rio Tinto owns a 75% share in Turquoise Hill Resources (NYSE: TRQ). In early 2022, it offered to acquire the remaining shares of Turquoise Hill for $2.7 billion in cash. This would give Rio Tinto complete control over the underground mining operation, significantly boosting the company's copper output. By 2030, Oyu Tolgoi is expected to be the fourth-largest copper mine globally. Rio Tinto also owns and runs the Kennecott mine in Utah. Silver and gold are also extracted from the world-class copper mine.

Rio Tinto has a number of expansion projects underway, including Resolution Copper in the United States and Winu in Australia. The Winu copper and gold resource, discovered in 2020, has the potential to become a large-scale mining operation.

Rio Tinto's expanding copper production should enable it to maintain its current level of dividend payments. Each year, the corporation intends to return 40% to 60% of its earnings to shareholders in dividends. 

6. Copper Mountain Mining (OTC: CPPMF)

Based in Vancouver, Canada, Copper Mountain Mining Corp. was established in 2006 and is focused on mineral exploration and development in Canada and Australia. The company's biggest asset is a 75% stake in the Copper Mountain mine in southern British Columbia, which produces over 100 million pounds of copper annually.

Copper Mountain is also developing the Eva Copper Project in Australia's Queensland state. The Eva project is intended to increase the company's yearly copper production by another 100 million pounds. Additionally, Copper Mountain is constructing a 210,000-hectare mining parcel in Australia's Mount Isa region. 

7. First Quantum Minerals (OTC: FQVLF)

Based in Vancouver, Canada, In 1996, First Quantum Minerals acquired the Bwana Mkubwa mining project in Ndola, Zambia. The miner has subsequently expanded to become one of the world's top ten copper producers, employing more than 20,000 people worldwide.

Cobre Panama is located in Panama; the Enterprise, Sentinel, and Kansanshi mines are located in Zambia. Guelb Moghrein is located in Mauritania; the Las Cruces mine is located in Spain; the Cayeli mine is located in Turkey; the Ravensthorpe mine is located in Australia Pyhasalmi mine is located in Finland. In Argentina, the Taca Taca mine and the Haquira mine in Peru are now under development. 

8. Solaris Resources (OTC: SLSSF)

Solaris Copper was the company's original name until December 2019, when it changed to Solaris Resources. Solaris is managed by the Augusta Group, which over the previous decade has generated approximately CA$4.5 billion in exit transactions.

Solaris Resources' primary objective is to acquire, explore for, and develop mineral properties principally in South America. The Warintza property, which encompasses 26,777 hectares in southeastern Ecuador, is the company's largest mining asset. Solaris also holds an interest in the Chilean Ricardo and Tamarugo properties and the Peruvian Paco Orco project.

9. Turquoise Hill Resources Ltd.

Turquoise Hill Resources is a miner and development firm established in Canada. The company focuses on mineral and metal resources throughout Asia and Australia, and its primary asset is southern Mongolia's Oyu Tolgoi copper-gold mine. The corporation announced financial data for the second quarter of its fiscal year (FY) 2021, which ended June 30, 2021, in late July. Net income attributable to shareholders increased 33.5 percent year over year on a 14.3 percent increase in revenue. Turquoise Hill Resources reported that the company grew revenue throughout the quarter despite lockdowns and staffing limits caused by the COVID-19 outbreak.

10. Glencore (GLNCY)

Glencore, the Swiss mining behemoth, is expected to generate 1.3 million tons of Copper in 2020. Copper is mined in Africa, Australia, and South America, and scrap copper is sourced and recycled in North America and Asia. The Katanga and Mutanda mines in the Democratic Republic of the Congo (DRC), the Ernest Henry and Mount Isa mines in Australia, and other mines in Chile and Peru are among the company's significant assets. Glencore is also a significant producer of cobalt. Cobalt, another scarce green metal, is a byproduct of Glencore's copper mining operations in the Democratic Republic of the Congo. Glencore mines nickel, zinc, lead, and a variety of other metals and minerals in addition to Copper and cobalt. On the other hand, Copper accounted for roughly 40% of the group's EBITDA in 2020.

11. OZ Minerals Ltd (OZMLF)

Oz Minerals Ltd. is a copper and gold mining company based in Adelaide, Australia. Oz runs three copper mines in Australia and a copper-gold center in Brazil and conducts international exploratory efforts. The business expects to produce 97,620 tons of Copper in 2020, increasing to 120,000-145,000 tons in 2021. Thus far, output has been following the guidance. The company generated revenue of 2.1 billion Australian dollars in 2021.

12. Vale S.A.

Vale is a Brazilian multinational enterprise specializing in metals and mining. Additionally, it owns one of Brazil's top logistics companies. Apart from logistics and mining, the corporation also operates in the steel and energy sectors. In a nutshell, it owns a portfolio of power supply contracts and self-generation assets, which are made up of renewable energy sources.

The business approved the acquisition of its coal assets last month. It has reached a deal with Vulcan Minerals to purchase the Moatize coal plant and the Nacala Logistics Corridor for a total of $270 million.

This follows Vale's announcement in early 2021 that it intends to divest itself of coal holdings. "I am glad to announce this critical step toward the appropriate divestiture of Moatize and NLC in a manner that benefits the communities and governments on which those enterprises are based and ensures the companies' long-term viability. This is another milestone in this commitment to reorganize the company around our core operations," said Vale CEO Eduardo Bartolomeo.

13. Zijin Mining Group Co., Ltd. (ZIJMF)

Zijin Mining Group is headquartered on the Chinese mainland but runs gold, copper, and zinc mines worldwide. Zijin Mining, China's largest mined copper producer, produced 450,000 tons of Copper in 2020 and plans to increase output to over 1 million tons by 2025. Zijin Mining has copper mines in Serbia, mainland China, Tibet, the Democratic Republic of the Congo, and Eritrea. Additional projects, such as the Rio Blanco in Peru, are in the planning stages. The corporation held Copper reserves of 62 million in 2020.

In October 2021, Zijin Mining entered the lithium market, another critical green metal, through the $770 million acquisition of Canada's Neo Lithium.

14. Capstone Copper Corp (TSE: CS)

Capstone Copper Corp, headquartered in Vancouver, Canada, manufactures Copper and a variety of other metals. It operates two copper mines in the United States and Mexico, in the Pinto Valley in the United States, and Cozamin in Mexico. Additionally, Capstone holds 100% of Santo Domingo, a major copper-iron-gold project in Chile, and many other exploratory prospects. In 2020, the company was expected to generate more than 70,000 tons of Copper. Capstone merged with Mantos Copper in March 2022. 

15. Ero Copper Corporation (ERO)

Ero Copper is a Canadian copper and gold miner based in Brazil. Copper production is expected to expand from 44,000 tons in 2021 to 96,000 tons in 2025. The MCSA Mining Complex, Boa Esperanca, a construction-ready project estimated to generate 35,000 tons of Copper, and the NX Gold mine are among its mining operations. Ero Copper expects to generate $490 million in revenue in 2021.

Is Copper a Good Investment?

Copper is a pinkish-orange metal with excellent conductivity. Indeed, it conducts electricity better than any other metal saves for the somewhat more expensive silver. According to the International Copper Association, Copper is utilized to conduct electricity in 70% of cases.

Copper is utilized in buildings, transmission lines, cell phones, and automobiles, particularly electric vehicles, because of its corrosion resistance and antibacterial properties. Indeed, EVs consume four to five times the amount of Copperas conventional cars. An electric vehicle includes approximately 80kg (176 lbs) of Copper, compared to 20kg (44 lbs) in a gasoline-powered vehicle. Additionally, Copper is recyclable and reusable.

Is There an ETF for Copper?

Various copper funds are available, including the Global X Copper Miners ETF (COPX). This company invests in copper mining firms' equities, the United States Copper Index Fund (CPER), and the iPath Series B Bloomberg Copper Subindex Total Return ETN (JJC). CPER and JJC invest in futures contracts for Copper, not in mining stocks.

How to Trade Copper Shares and Exchange-Traded Funds

Consider copper ETFs if you want broad exposure to the copper business through various equities. With ETFs, you can invest in a variety of copper-related firms or in the copper industry as a whole.

If you wish to speculate directly on the price of Copper rather than through copper mining equities, you can do so via derivative trading products such as CFDs. You can trade CFDs on either the current copper spot price or on copper futures, which means you can guess the future price of Copper. You will benefit from correctly anticipating the copper price and losing if you do not.

Additionally, it is worth mentioning that CFDs are leveraged trading instruments. This means that you will make a bit of initial investment (referred to as margin) to start a more prominent position. However, because profits and losses are determined by the full size of your position, not the margin amount, they can significantly overwhelm your deposit.

• Decide if you wish to trade CFDs.

• Determine whether you want to invest in a single copper stock or a copper ETF.

• Create an account or log in to your existing one.

• Take measures to mitigate your risk.

• Open and keep an eye on your position.

Why Do Individuals Invest in Copper Stocks and ETFs?

Individuals trade copper stocks and exchange-traded funds (ETFs) because they provide an accessible option to obtain exposure without directly owning the metal.

Copper is utilized widely in various operations that ensure the smooth operation of our contemporary society, from electricity generation to infrastructure. This indicates that the metal's demand is reasonably stable.

Because of the large variety of uses for Copper, its price is seen as a reliable indication of macroeconomic health. Demand for Copper will always be high when demand for infrastructure, electricity, and technology is. Indeed, some economists lovingly refer to the metal as 'Doctor Copper.'

Apart from macroeconomic and geopolitical variables, the copper price is influenced by the state of the copper mining industry. For example, the copper price fell temporarily in 2020 following the closure of copper mines due to Covid-19 pandemic lockdowns.

Additionally, there is some concern about the earth's copper supplies being depleted shortly, possibly within 65 years.

15 This information could increase the price of Copper.

Additionally, Copper is a commodity to monitor since it is utilized in the copper-intensive process of making electric vehicles, which is expected to rise tremendously, possibly pushing the copper price even higher. 

Conclusion

Freeport McMoRan, BHP Billiton, and Southern Copper Corporation are the best copper stocks to buy right now.

Freeport McMoRan is the industry leader and the world's largest copper producer. Southern Copper Corporation intends to increase output by 50% over several years. It should boost the share price, while BHP Billiton may have the most potential if fresh explorations locate major new mines - the downside is that the risk is likely to be the greatest.

For investors searching for diversified exposure to the copper market, the United States Copper Index Fund offers a low-cost vehicle for gaining exposure to the returns on a portfolio of copper futures contracts.