The world of copper stocks has been performing well lately. The copper sector involves corporations that explore for, extract, develop, and produce copper. Copper just so happens to be one of the most widely used metals in the world. As a result of the pandemic, copper has gone up in price exponentially over time. This didn’t happen overnight though. In fact the market for copper got crushed by the pandemic at first.
But copper was able to bounce back because of the worry for supply, and recovery of industrial activity. The demand for copper in China also increased a lot, which is one of copper’s largest markets. The metal is used in electronics, power generation, construction, among many other uses. Copper stocks follow the Global X Copper Miners ETF. This ETF, COPX, has given investors a more than 50% return in the last year.
The price of copper per ton is at about $7,800 at the moment. This is right near copper’s all time high price in the market. Often investing in copper companies can be a very good investment. Many will shy away from metals like copper and steel because they’d rather invest in gold and silver. But the truth of the matter is, there are plenty of mining stocks that have been consistently trading higher for the last year.
While maybe not as valuable as silver or gold, the metal is valuable for the economy. Most if not all wires rely on copper, and it is the most cost effective electric conductor on the market. Copper mining companies often will search for gold, silver, and zinc as well. Let’s look at four copper stocks that have been trending in the market.Top Copper Stocks To Watch
- Teck Resources Limited (NYSE: TECK)
- Southern Copper Corporation (NYSE: SCCO)
- Hudbay Minerals Inc. (NYSE: HBM)
- Turquoise Hill Resources Ltd. (NYSE: TRQ)
The first copper stock to watch is Teck Resources Limited. Teck Resources is a mining corporation with a focus on research, exploration, development, and production of natural resources. It actively operates in the Asia Pacific, the Americas, and Europe. Teck’s different segments include copper, steel, zinc, and energy. In these segments the company produces coal, copper, zinc, bitumen, gold, silver, and plenty more resources. It owns interest in Frontier oil sands projects, and exploration and development projects. These many projects are located in Alberta, Australia, Chile, Ireland, Mexico, Peru, Turkey, and the United States. So what has its performance looked like recently in the market?
Teck’s latest update comes from February 17th. This is when the corporation decided to release its unaudited annual and fourth quarter results for 2020. The President and CEO of Teck said, “In the fourth quarter we delivered the strongest quarterly financial results of 2020, while also outperforming the same period in 2019. As of the end of the year we achieved our target of forty percent overall completion of our QB2 Project which, when operating at full capacity, will double our total consolidated copper production.” That is the latest from Teck Resources.Southern Copper Corporation
Next up on this list of copper stocks is Southern Copper Corporation. SCCO explores, mines, smelts, and refines copper primarily. Southern Copper operates mines in Peru, Mexico, Ecuador, Argentina, and Chile. The company’s primary functions are mining and milling copper ore. To date it has more than 290,000 hectares of land across all of its properties. Let’s dive into what the recent company performance has looked like in 2021 so far.
Hudbay Minerals Inc.
On January 29th, the latest update from the Southern Copper was put out. This press release included its fourth quarter 2020 earnings. The company’s earnings beat all estimates, and rose year over year. Its net sales went up 27% year over year, and its operating costs went up 5% year over year as well. In the last 6 months SCCO stock price has gone from $45 a share to over $74 a share. It will be interesting to see what SCCO stock’s performance will look like for the rest of this year.
Now let’s talk about Hudbay Minerals Inc. Hudbay Minerals is a mining company that will discover, produce, and market base and precious metals. It produces copper concentrates, containing copper, gold, and silver. Also contained is molybdenum concentrates and zinc metals. Hudbay owns three polymetallic mines, four ore concentrators, zinc production factories, and various copper projects. Let’s dive into its recent performance in the market.
On February 18th, Hudbay announced its fourth quarter and full year 2020 results as well as its 2021 guidance. In 2020, its annual gold sales volumes increased by 24% year over year. The company expects its consolidated copper production to increase by 7% in 2021 compared to 2020. The increase is expected to increase more in 2022, with higher grades at its Pampacancha deposit in Peru. Its consolidated gold production is forecasted to go up by 62%. Peter Kukielski, the President and CEO of Hudbay said, “Our Peru operations continued to perform well despite COVID-19 challenges and the team successfully completed the Consulta Previa process for Pampacancha.”Turquoise Hill Resources Ltd.
Last up on this list of copper stocks is Turquoise Hill Resources Ltd. Turquoise Hill is a mining company that primarily will explore for copper, gold, and silver deposits. Its main property is the Oyu Tolgoi copper and gold mine located in Mongolia. Previously known as Ivanhoe Mines, the company has made a name for itself.
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Now the company faces some trouble trying to consider the temporary injunction ordered by the arbitrator in the British Columbia arbitration. This was announced on February 4th, and Turquoise hill and Rio Tinto were supposed to hold a hearing about this. As of February 11th, this hearing has been cancelled. TRQ stock price broker above $16.50 a share this week marking the first time it traded this high since 2019.