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Best Copper Stocks To Buy Now To Reap The Maximum Return (2023)

ByMarcus Lim

Sep 19, 2023
Best Copper Stocks To Buy Now To Reap The Maximum Return

In the vast spectrum of commodities, copper shines as an essential metal. Its significance is ever-growing, especially given our technological advancements and environmental shifts.

Interestingly, some market pundits forecast that copper’s demand could surge, potentially doubling before this decade concludes. This projection naturally leads investors to quest for the market’s best copper stocks.

Undoubtedly, from powering electric vehicles to forming the backbone of renewable energy systems, copper is becoming increasingly sought after. Leading mining corporations responsible for extracting and producing this metal are now at the epicenter of this burgeoning demand.

Do you know: a bold prediction from Goldman Sachs suggests that by 2023’s close, copper stock prices might soar to an impressive $11,000 per tonne. Yet, it’s vital to remember that while the allure of high returns is tempting, it’s accompanied by inherent risks.

This guide offers a deep dive into the copper stock domain. We’ll spotlight the industry’s elite, weaving in data-driven insights and expert analyses.

Whether you’re an investment veteran or a newcomer, we aim to arm you with the knowledge required for informed decision-making. Join us as we navigate the promising landscape of best copper stocks to buy now and explore their gleaming for 2023 and the following years.

7 Best Copper Stocks with High Potential Return (2023 List)

Stocks Market Cap Current Price
BHP Group (NYSE: BHP) $139.489B $54.99
Southern Copper (NYSE: SCCO) $60.859B $78.72
Freeport-McMoRan (NYSE: FCX) $57.002B $39.29
Rio Tinto (NYSE: RIO) $101.479B $61.22
Vale S.A. (NYSE:VALE) $59.533B $13.31
Newmont Corporation (NYSE:NEM) $30.752B $38.73
Teck Resources (NYSE:TECK) $20.87B $40.31

1. BHP Group (NYSE: BHP)

bhp group

BHP Group, prominently listed as BHP on the New York Stock Exchange, stands as a titan in the global mining landscape. With its roots in Australia, this multifaceted company, delving into mining, metals, and petroleum, ranks among the world’s most colossal in terms of market cap.

While BHP’s repertoire consists of many minerals, its copper ventures are considered the best copper stocks to buy now.

The past few years have seen an exponential rise in copper’s demand, primarily attributed to its crucial role in sustainable energy innovations. Sensing this massive potential, BHP Group has amplified its endeavors in copper production.

Recent figures reveal a consistent uptick in BHP’s copper yield, reflecting its strategy to leverage the escalating demand. To illustrate, data from the 2022 fiscal year showcases BHP’s copper yield at a commendable 1.57 million metric tonnes.

Our further research suggests that BHP’s workplace extends to copper-abundant territories, notably the Escondida mine in Chile, recognized as one of the planet’s best copper mines. The mine extracts up to 1011 tonnes of copper.

Therefore, its recent financial disclosures spotlight a sturdy revenue trajectory for the company.

So, what implications does this hold for prospective investors?

With market analysts forecasting copper prices to touch an eye-watering $11,000 per tonne by 2023’s finale, entities like BHP are poised for substantial gains. Adding to this, BHP’s diverse mineral and metal portfolio acts as a safety net, mitigating market fluctuations, thereby cementing its position as one of the best copper stocks to buy now for a well-rounded investment strategy.

2. Southern Copper (NYSE:SCCO)

Southern Copper

Southern Copper Corporation (NYSE:SCCO) is a dominant force in the world of copper. Founded in Delaware back in 1952, it has since broadened its reach, especially in regions like South America and Peru. Today, it holds the title of having the world’s most extensive copper reserves.

Positioned with the best copper stocks and a strategic operational blueprint, Southern Copper is primed to harness this growing demand.

Remarkably, by 2023, the company’s stock has soared by over 37%, leaving behind many competitors in the sector. This upward trend highlights the company’s adeptness in managing operations and maneuvering through unpredictable commodities.

On the financial front, Southern Copper is rock-solid. It claims a hefty market capitalization of $60.859 billion and a stock valuation of $78.72, promising investors a mix of security and growth avenues.

The company shines bright for dividend enthusiasts, with a dividend yield standing at 5.08%, reflecting its dedication to enhancing shareholder returns.

However, it’s not just about the numbers.

As the global momentum shifts towards green energy, copper’s significance is bound to amplify. And Southern Copper, armed with its reserves and production prowess, is geared up for this challenge. Therefore, the company has some of the best copper stocks to buy now for those eyeing a harmonious blend of growth prospects, stability, and dividend returns.

3. Freeport-McMoRan (NYSE: FCX)

freeport-mcmoran

Freeport-McMoRan, commonly known as FCX, has carved a significant niche in the world of copper. Based in Phoenix, Arizona, this copper giant has risen to a global reputation as a top-tier producer of copper and gold. Its expansive mining footprint stretches across America, reinforcing its dominant position in the copper sector.

FCX has strategically positioned itself to harness the increasing demand for the best copper stocks. Investors have taken note of the company’s impressive strides, both in terms of financial health and strategic endeavors.

Recent financial data underscores FCX’s commitment to the copper realm, revealed by their robust cash reserve of $6.683 billion.

Furthermore, Their mining activities, particularly in copper-rich territories, have been amplified to cater to the escalating demand. While FCX’s efforts are geared towards current market needs, they also have an eye on the horizon, preparing for future copper requisites.

As the momentum towards eco-friendly energy solutions gains pace, the appetite for copper is anticipated to intensify, solidifying Freeport-McMoRan’s status among the best copper stocks.

4. Rio Tinto (NYSE: RIO)

rio tinto

Rio Tinto, a titan in the mining world, boasts a staggering market capitalization of around $101 billion. This diversified mining colossus delves into various minerals, from aluminum to diamonds. Yet, their significant stride in the copper sector is turning heads.

Their recent $55 million investment in Utah clearly indicates their commitment to the copper industry. This project, slated for full production by mid-2023, showcases the company’s dedication to meeting the massive demand for copper.

The global momentum and increasing copper demand places Rio Tinto in a prime position. However, like all investments, Rio Tinto isn’t without challenges.

The mining sector’s inherent cyclicality and commodity price fluctuations can influence the company’s bottom line. But, with a diverse portfolio and forward-thinking investments, Rio Tinto appears well-equipped to handle these challenges.

In a nutshell, for those scouting the best copper stocks, Rio Tinto emerges as a compelling choice. Their significant investments in the copper sector, coupled with the projected global demand for this metal, position them as a frontrunner in the copper stock market.

5. Vale S.A. (NYSE:VALE)

Vale S.A_

Vale S.A. (NYSE: VALE) has its focus set on iron ore and iron ore pellets. Headquartered in Rio de Janeiro, Brazil, Vale has expanded its operations globally, making it one of the world’s largest iron ore producers.

However, its best copper stocks are also noteworthy, especially given the rising demand for this essential metal.

Vale has been actively involved in catering to copper’s growing demand. Their financials reveal a strong position, with a reported cash reserve of $5.03 billion and a market capitalization of approximately $59.533 billion.

In the fiscal year 2022, Vale’s endeavors in the copper sector were evident. Their operations, particularly in regions abundant in copper ore, have been intensified to address the escalating demand.

Thanks to those initiatives, Vale has one of the best copper stocks to buy now.

6. Newmont Corporation (NYSE:NEM)

Newmont Corporation

Newmont Corporation, trading as NEM on the NYSE, stands tall as a beacon in the list of best copper stocks to buy now. With its roots in Greenwood Village, Colorado, Newmont has carved a significant reputation as a premier gold producer while delving into the realms of copper, silver, lead, and zinc extraction.

With its diversified mining portfolio and strategic operations, Newmont is well-poised to leverage the increasing demand for copper. As of 2023, the company’s stock performance is noteworthy, reflecting its operational excellence and market strategy. A glance at the financials of Yahoo Finance reveals a market capitalization of approximately $30.752 billion, indicating its significant market presence.

Newmont’s copper production unit has showcased its commitment to meeting the rising demand for this essential metal. Their mining operations, especially in Boddington and Phoenix, have been optimized to ensure consistent supply.

The company’s recent financial reports and strategic investments in copper mining projects further underscore its dedication to the copper sector, making it ideal for the best copper stock hunters.

7. Teck Resources (NYSE:TECK)

teck resources

Teck Resources Limited, trading as TECK on the New York Stock Exchange, stands tall in the realm of mining. Established in 1913 and anchored in Vancouver, Canada, Teck has carved a niche in extracting diverse natural resources, with a pronounced emphasis on copper.

With its expansive reserves and strategic foresight, Teck Resources will surely come up with the best copper stocks to buy now. As the data from September 8, 2023, reveals, Teck’s stock price is pegged at $40.31, and its market cap touches an impressive $20.87 billion.

Such formidable financial metrics reflect Teck’s adeptness in managing the complex commodities in the industry.

Zooming into the fiscal landscape of 2023, Teck Resources announced a revenue stream hitting $14.7 billion, reinforcing its dominant stance in the sector. Beyond copper, Teck’s portfolio encompasses a spectrum of vital minerals and metals, offering investors a diversified investment avenue.

This multifaceted approach acts as a shield, cushioning against the unpredictable swings of the market, thus positioning Teck as a resilient contender in the commodities domain. To wrap up, Teck Resources emerges as a top pick if you are looking for the best copper stocks to buy now.

The Increasing Demand for Copper Stocks

As 2023 unfolds, we’re witnessing a pronounced uptick in the appetite for copper stocks, mirroring the metal’s escalating significance across diverse industries. A myriad of elements is driving this intensified demand.

At the forefront is the global pivot towards green energy solutions like solar panels and wind turbines, or what we usually call ESG stocks.

(If you wish to learn more, we have an article on the different types of stocks.)

These renewable sources are heavily dependent on copper for their foundational structures. In perspective, just one wind turbine might house up to 3 metric tons of the metal.

Further elevating this demand is the transportation sector’s electrification, particularly the pivot to electric vehicles (EVs). An EV typically houses around 183 lbs of copper, quadrupling the amount found in traditional gasoline-powered cars.

With forecasts suggesting that EVs might constitute 10% of worldwide vehicle sales by 2025, the ramifications for copper consumption are vast.

Additionally, rapid urbanization, especially in burgeoning economies, is spurring construction booms. Copper finds extensive application in buildings, notably in electrical wiring, plumbing systems, and heating mechanisms.

Yet, the allure of the best copper stocks isn’t solely tethered to its burgeoning demand. Supply-side challenges and geopolitical upheavals in key copper-rich territories have raised alarms about possible supply shortfalls. Current data suggests a potential shortfall in the global copper supply, with a deficit nearing 114,000 tons as 2023 concludes.

As global dynamics shift, copper’s intrinsic value in our daily existence and economic industries will undoubtedly magnify. Therefore, for investors, monitoring the copper market’s pulse is imperative.

Final Words on Copper Stocks

Navigating the intricate realm of the best copper stocks has been a revealing journey. Several pivotal insights have surfaced as we’ve explored the nuances of each dominant entity in this sector.

The first is the undeniable global transition towards green energy and the electrification wave in transportation. The data we’ve sifted through, from the meteoric rise in EV adoption to windmill energy initiatives, underscores a trajectory where copper’s role becomes even more central.

Moreover, while all the best copper stocks we’ve discussed hold promise, investors must approach the copper market with a discerning eye. Like any other, the industry is fraught with challenges – from geopolitical tensions to environmental concerns. However, these challenges also present opportunities. So, companies prioritizing sustainable mining practices and investing in R&D to improve ore extraction efficiencies will likely emerge as frontrunners in the long run.

Furthermore, a particularly intriguing statistic that caught our attention was the potential deficit in the global copper supply. This imminent supply-demand disparity could significantly influence the best copper stocks and valuations.

All in all, the copper sector is bound to go through the roof in the coming years. The market capitalization of multiple copper stocks has already skyrocketed, and it would not surprise us if the remaining ones do the same.

Therefore, buying copper stocks as a long-term investment is an excellent opportunity for seasoned investors and industrial enthusiasts.

 

**Disclaimer: This article is only offered for general informational reasons and is not meant to cover all facets of the subjects it addresses. It is not meant to be taken as legitimate investment advice you should rely on. You must seek expert or professional advice before acting or refraining from acting based on the information in this publication. The content in this publication does not represent advice from the BizTech Community. A comparable outcome is not always assured by past performance. We give no assurances that the information in the publication is accurate, full, or up to date, either explicitly or implicitly.

Frequently Asked Questions (FAQs)

Is Copper A Good Investment In 2023?

Undoubtedly, 2023 positions copper as a prime investment avenue. A multitude of elements bolster its appeal.

To begin with, the world’s pivot to green energy solutions, notably solar and wind, has heightened copper’s significance. Such renewable platforms are tied to this metal for their foundational needs. Take, for example, a wind turbine; it integrates a considerable copper quantity.

Furthermore, the drive towards vehicular electrification, notably the transition to electric vehicles (EVs), accentuates this demand curve. An EV, on average, incorporates an impressive copper volume, dwarfing the amount found in its gasoline-driven counterpart. Given the forecasted uptick in EV market penetration, the ramifications for copper’s market dynamics are profound.

Moreover, urbanization trends, especially in emerging economies, have led to increased construction activities.

Considering these factors and potential supply constraints due to declining ore grades and geopolitical tensions, the best copper stocks’ investment prospects in 2023 appear promising. However, like all investments, it’s essential to conduct thorough research and possibly consult with financial experts before making any decisions.

What Is The Best Copper ETF To Buy?

Copper-focused Exchange-Traded Funds (ETFs) have risen in popularity as investors seek avenues to tap into the copper market without directly engaging with individual mining entities. Like the best copper stocks to buy now, there are multiple distinguished copper ETFs in 2023.

The Global X Copper Miners ETF (NYSEMKT: COPX) stands out prominently. Managing assets worth $1.56 billion, this ETF grants investors a gateway to a diverse set of copper mining entities. This ETF offers a broad spectrum of the copper mining realm and maintains an expense ratio of 0.65%.

Another notable mention is the United States Copper Index ETF (NYSEMKT:CPER). With assets valued at $150.52 million, its primary focus is copper futures contracts. Its objective is to mirror the returns of a copper futures index, accounting for expenses. With an expense ratio pegged at 0.97%, it’s optimally designed for investors eyeing short-term trades, especially when anticipating swift movements in copper prices.

The iPath Series B Bloomberg Copper Subindex Total Return ETN (NYSEMKT:JJC) offers a different flavor. This exchange-traded note (ETN), overseeing assets of $37.97 million, delves into copper futures contracts. Charging a fee rate of 0.45%, its goal is to align with its index’s daily returns, making it a fit for short-term trading strategies over long-term investment horizons.

These ideal copper ETFs serve as a streamlined entry point into the copper arena, just like the best copper stocks. However, a thorough assessment and comprehension of each ETF’s metrics are paramount for investors before committing their capital.

Is There A Copper Index Fund?

Yes, several index funds and ETFs (Exchange-Traded Funds) track the performance of copper and the broader metals market. Copper index funds typically invest in futures contracts for copper, aiming to replicate the performance of the metal’s price.

These funds expose investors to the copper market without investing directly in physical copper or individual mining companies. Some popular copper ETFs include the Global X Copper Miners ETF (COPX) and the United States Copper Index Fund (CPER). Remember, investors need to research each fund’s strategy, holdings, and performance before making an investment decision.

What Is The Biggest Copper Stock?

Like the best copper stocks, identifying the “biggest” can also be intricate. That is because it depends on various factors, including market capitalization, volume of production, and mineral reserves.

Historically, heavyweights like Freeport-McMoRan (FCX), BHP Group, and Southern Copper Corporation (SCCO) have consistently emerged as dominant forces within the copper realm. As per the data of 2023, Southern Copper has produced 44.8 million tons of copper. Considering this production number, the company has the biggest copper stock.

Yet, it’s essential to recognize that the sector’s terrain is fluid. Elements such as shifting market dynamics, the performance trajectory of individual companies, and strategic corporate moves can recalibrate these standings periodically. Therefore, investors are encouraged to research the best copper stocks for insightful investment strategies to make an informed decision.

Marcus Lim

Marcus Lim is a seasoned financial writer specialising in stocks and trading in Malaysia. With over a decade of experience...

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