Are These Top Copper Mining Stocks Worth Investing In Right Now?
When looking for good stocks to invest in in the stock market now, investors may want to consider copper mining stocks. Why? For starters, copper is one of, if not, the most versatile metals in the world now. Whether it is the construction, electronics, or even automobile industries, copper is a significant component. Notably, demand for the metal could continue to rise thanks to growing global green initiatives as well. According to the International Copper Association, the electric vehicle and renewable energy industries use much more copper compared to their non-green predecessors. Specifically, these industries use upwards of four to five times the copper. In turn, all this could drive interest towards copper in organizations and investors alike.
Given the current momentum of copper, I could understand if investors are eyeing the precious metal now. For investors choosing between stocks and commodities, copper mining stocks could also offer a good middle ground. Moreover, Bank of America (NYSE: BAC) commodity strategist Michael Widmer seems keen on the long-term growth potential of copper. Namely, Widmer argues that dwindling copper supplies could drive the price per ton of copper to $20,000 by 2025. If this occurs, it will mean that copper could more than double in price over the next four years. Of course, copper prices recently hit the $10,000 per ton mark after a decade.
As a result, it would not surprise me to see investors looking towards the top copper mining stocks now. Key players in the copper industry such as BHP Group (NYSE: BHP) and Glencore (OTCMKTS: GLNCY) are already up by over 90% in the past year. Could one of these stock market copper plays be your next big investment?
Best Copper Mining Stocks To Watch In May
- Rio Tinto (NYSE: RIO)
- Southern Copper Corporation (NYSE: SCCO)
- Newmont Corporation (NYSE: NEM)
- Freeport-McMoRan Inc. (NYSE: FCX)
Rio Tinto plc
Rio Tinto is a multinational company and is one of the world’s largest metals and mining corporations. It produces iron ore, copper, diamonds, gold, and uranium. Besides focusing on the extraction of materials, the company also has significant operations in refining. The company has operations in 35 countries all over the world and is a key player in the copper industry. RIO stock currently trades at $93.17 as of the closing bell on Friday and has doubled in the last year.
In February, the company reported its full-year financials for 2020. Rio Tinto had weathered through the pandemic and seems poised to make a strong recovery. Firstly, the company’s net cash generated from operating activities was $15.87 billion, up by 6% year-over-year.
Secondly, net earnings for the year was $9.76 billion, a 22% increase compared to a year earlier. Given the resilience of its business operations coupled with strong commodity prices, the company has managed to deliver a commendable quarter. All things considered, will you consider buying RIO stock?
Southern Copper Corporation
Southern Copper is one of the largest integrated copper producers in the world. Its mining operations are located in Peru and Mexico while its exploration activities are also in those countries and Chile. The company utilizes state-of-the-art mining and processing methods, which include a global positioning system and computerized mining operations. SCCO stock currently trades at $76.87 as of 4:00 pm ET Friday and has been up by over 110% in the last year. Last week, the company reported its first-quarter financials for 2021.
In it, net sales for the quarter were $2.53 billion, which was a 47.3% increase year-over-year. Growth was mainly driven by significantly higher metal prices for copper, silver, and zinc. Net income for the quarter was $763.8 million, which was a staggering 255.6% increase compared to a year earlier.
The company has also been investing heavily to expand its operations. For the quarter, it spent $232.6 million on capital investments, which represented a 130.3% increase from what it spent last year. Southern Copper also announced a dividend of $0.70 per share. With that in mind, will you consider SCCO stock a top copper mining stock to buy?
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Newmont is the world’s largest gold mining company. In addition to gold, the company also mines copper, silver, zinc, and lead. It boasts over 31,600 employees and contractors worldwide and is the only gold company in the S&P 500. NEM stock closed Friday’s trading session at $67.33 a share and has been trading sideways year-to-date. Could this be an opportunity for investors to buy NEM stock given the rise in copper prices? Last week, the company delivered solid first-quarter financials and is on track to meet its full-year guidance.
For the quarter, the company produced 1.5 million attributable ounces of gold and 317,000 attributable gold equivalent ounces from co-products. It also reported an adjusted net income of $594 million for the quarter, an 82.2% increase year-over-year. Impressively, it ended the quarter with $5.5 billion of consolidated cash.
Newmont’s capital-efficient project pipeline supports improving production, lowering costs, and extending mine life. Funding for the current development capital project Tanami Expansion 2 has been approved and the project is in the execution stage. Given these developments, will you consider buying NEM stock?
Topping off our list today is Freeport-McMoRan Inc. (Freeport). In brief, the Arizona-based company is a leading name in the international mining industry. Freeport mainly operates large and long-lived geographically diverse assets with reserves of copper, gold, and molybdenum.
For a sense of scale, the company’s portfolio includes the Grasberg minerals district in Indonesia, one of the largest copper and gold deposits in the world. On top of that, Freeport also boasts significant mining operations across the Americas. Safe to say, Freeport is no newcomer when it comes to copper. In fact, FCX stock is currently looking at gains of over 370% in the past year. Could it still be worth investing in now?
Well, we could take a look at the company’s recent quarter fiscal posted late April. In it, Freeport posted stellar figures across the board. In particular, the company saw massive year-over-year surges of 73% in revenue and 245% in earnings per share. Moreover, Freeport also posted a year-over-year increase of 185% in cash on hand, adding up to $4.58 billion. CEO Richard Adkerson cited solid operational execution from Freeport’s global team as a key growth driver for the quarter. Given the company’s strong cash position and current momentum, would you consider FCX stock a buy?