Copper stocks have grown in popularity a lot in the last year and a half. Copper companies in general engage in exploration, extracting, and production of the metal. Some just think of pennies when copper is mentioned, but it is much more than this. This metal is also the third most used metal in the world. Copper stocks usually trade based on the performance of the Global X Copper Miners ETF. The COPX ETF has provided a massive return in the last year for investors of the metal.
The market for electric vehicles has exploded in the last decade. Especially in the last five years, the production and sales numbers for EVs have drastically increased. There is already more than 5 million electric vehicles on the road in 2021. The largest electric vehicle producer, Tesla, delivered more than 500,000 electric vehicles in 2020 alone. Copper is an essential material used when making electric cars.
Battery electric vehicles use roughly 183 pounds of copper per vehicle. This means as the demand for EVs has gone up, copper stocks have performed well too. This is similar to the rapid growth of lithium stocks in the market. There are many great copper stocks to watch that are moving up in the market. Let’s look at three copper stocks that have potential in the market.Top Copper Stocks To Watch
- Southern Copper Corporation (NYSE: SCCO)
- Freeport-McMoRan Inc. (NYSE: FCX)
- Rio Tinto Group (NYSE: RIO)
Southern Copper Corporation is a mining company that explores, mines, smelts, and refines copper. The company operates mines in Peru, Mexico, Ecuador, Argentina, and Chile. Its primary functions are mining and milling copper ore. To date, it has more than 290,000 hectares of land across all of its properties.
On July 28th, the company reported its second-quarter earnings for 2021. The company reported $1.21 per share earnings in the quarter. This was an improvement of 256% year over year for Southern Copper. This was caused by higher metal prices and improved cost efficiency and productivity.
Southern Copper’s net sales grew 62% year over year as well. Its copper, molybdenium, silver, zinc, and gold sales were 81.8%, 68.6%, 61.9%, 48.3%, and 6.2% respectively. Its operating cash cost per pound of copper rose 11.5% year over year as well. It is clear that Southern Copper experienced a lot of positive performance in 2021. On September 2nd, the company is up 1% in the market. Keeping this in mind, will SCCO enter your copper stock watchlist?Freeport-McMoRan Inc. (NYSE: FCX)
Freeport-McMoRan is a mining company that searches for gold, silver, copper, molybdenum, among other metals. It operates out of North America, South America, and Indonesia. Additionally, the company owns plenty of oil and gas properties that are in California and the Gulf of Mexico.
In July, the company reported its second-quarter and six-month 2021 results. Its net income, consolidated sales, and average realized prices were all strong. Chairman and CEO Richard C. Adkerson said, “Our global team continues to execute our operating plans safely, efficiently, and responsibly, providing strong cash flows and a solid foundation for future profitability and growth. During the first half of 2021, we reduced our net debt by $2.7 billion and achieved our targeted net debt level, positioning us for increasing cash returns to shareholders and investments in future growth in accordance with our financial policy.” Will FCX enter your list of copper stocks to watch?Rio Tinto Group (NYSE: RIO)
Rio Tinto Group is a mining company that explores for, mines, and processes various mineral resources. Rio’s main products are aluminum, silver, molybdenum, copper, diamonds, gold, borates, titanium, salt, iron ore, and uranium. Rio does aluminum smelting, and many types of mining.
On August 24th, the company resumed its operations at Richards Bay Minerals in South Africa. This is after the stabilization of the security situation around the mine. Chief Executive Minerals Sinead Kaufman said, “The safety and security of our people has been our priority throughout and we recognize the collaboration and constructive dialogue we have had with all stakeholders to get us into a position where we can restart operations and resume contributing to the host communities, KwaZulu-Natal and South Africa. I also acknowledge the resilience and dedication shown by all our people at RBM over the past weeks.” Keeping this in mind, will RIO make your list of copper stocks to watch in September?Top Copper Stocks To Buy?
It can be difficult to decide which copper stocks are the best to buy. Looking at sector news, world news and company news can all be helpful in the process of investing. It will be interesting to see how the sector progresses in the future. For now, which copper stocks will make your watchlist?