Copper stocks are sometimes a sector of mining that is overlooked. This is because investors often place their focus onto gold stocks or silver stocks. But what many do not realize is that the market for copper is growing over time. This is a necessary resource that is used in many things we use every day. Investors who got in early received a great return on investment from the metal in the last year.
So why is copper going up so much in the market? Part of this could have to do with the metal’s affiliation with electric vehicles. A regular gas powered vehicle has anywhere between 18-49 pounds of copper in it. Battery electric vehicles use roughly 183 pounds of copper per vehicle. Many consider to be copper one of the main components in electric vehicles. Its conductivity, durability, and malleability make it very ideal for the batteries used in EVs. In fact copper is used in nearly all of the major components of an electric vehicle. The metal is used in the motor, inverter, wiring, battery, and more. There is about a mile of copper wiring in most of them.
The pandemic is another reason that copper stocks could be performing well. As many world economies are moving towards recovery, copper is being used much more industrially. Industrial companies are able to operate 100% right now unlike in the last year. Retail sales for products that use copper are also increasing with this. Inflation fears could be another reason for the price increase of copper. If the dollar crashes, it is possible that precious metals could increase in price. With all of this in mind, let’s look at three copper stocks that have market potential.Top Copper Stocks To WatchSouthern Copper Corporation (NYSE: SCCO)
Southern Copper Corporation is a copper stock with a primary focus on exploration, mining, smelting, and refining copper and other minerals. It operated mines in Peru, Mexico, Ecuador, Argentina, and Chile. Its main activity is mining, milling, and gloatating copper ore. The company has more than 290,000 hectares of land across all of its properties. So what has Southern Copper been up to in 2021?
On June 17th, the company announced that its projects are on track to meet its goal of producing 1.9 million tons by 2028. This will help the company capitalize on the increased demand for copper because of the global focus on lower carbon emissions. In the company’s most recent earnings released for the first quarter, it beat estimates from analysts. One year ago SCCO stock was at $37 per share on average. Now as of June 22nd, SCCO stock is at $62 per share on average. With this growth in mind, will SCCO stock make your watchlist this month?Freeport-McMoRan Inc. (NYSE: FCX)
Freeport-McMoRan is a copper stock searching for gold, silver, copper, molybdenum, among other metals. It operates out of North America, South America, and Indonesia. The company searches for oil and gas as well. Its oil and gas locations are in California and the Gulf of Mexico. As of December 2020, it operates 165 wells.
On June 23rd the company declared its quarterly cash dividend on common stock. Its cash dividend will be $0.075 per share on FCX’s common stock payable on August 2nd, 2021 to stockholders on record as of July 15th, 2021. At the start of 2021, FCX stock was at $27 per share on average. Now on June 22nd, FCX stock has reached $36 per share on average. As the market for gold, silver, and copper continues to grow, FCX stock seems to as well. So will this company make your copper stock list this week?BHP Group (NYSE: BHP)
BHP Group is a copper stock that operates in the natural resources field. Its business is operated in Australia, Europe, China, Japan, India, and other parts of Asia and North America. The company’s primary products are petroleum, copper, iron ore, and cole. It also will mine for silver, zinc, uranium, and gold. Because of its large variety of assets explored for, the company has grown into a top producer. So what has this corporation been up to recently?
BHP Group recently released statements on its potash production. The company believes that the global demand for potash could grow by as much as 3% a year over the next decade. The world’s biggest miner of the material has seen some good progress with the material. BHP’s chief economist, Huw McKay said, “Potash is a future-facing commodity that is positively leveraged to global mega-trends, including decarbonization. While the industry is currently subject to excess capacity, the demand trajectory is expected to absorb this overhang over the course of this decade.” Will BHP stock make your watchlist as it sees some gains in the market this week?Copper Stocks In The Market
The world is pushing for a more sustainable and energy efficient future at the moment. Copper’s demand in the market will continue to grow with time as long as the world keeps pushing towards this goal. This metal is being used to increase the efficiency of plentiful electrical technologies. Whether it’s motors, transformers, batteries, wires, or solar energy systems, this versatile metal is proving to be a strong asset. So which companies will make your list of copper stocks to watch?