These Copper Stocks Show High Performance
When it comes to copper stocks, they can often be overlooked by the average investor. When speaking mining stocks, many turn to assets like gold stocks and silver stocks. But the truth is, there are many other types of mining assets that are performing well in the market. One prime example of this is copper stocks. Copper companies like many other sectors will explore, extract, and produce the metal. Copper is a lot more than just pennies. The metal just so happens to be the third most used in the world. Like most assets, this sector experienced some downtime as a result of the pandemic. But once recovery began, the market for copper started booming. Many feared that there would be a copper shortage which caused an increase of demand. This happened specifically in China as well where demand grew strong for copper.
One potential investment some make is in to the Global X Copper Miners ETF. This ETF will generally show how copper is performing, and has given more than a 50% return to investors in the last year. Another reason that copper is performing well has to do with electric vehicles. Maybe you have seen how EVs caused lithium stocks to skyrocket. Well, copper is an important material when creating electric vehicles. Copper is used in various components in the vehicles, and its charging stations too. A fully electric car will use 183 pounds of copper per vehicle. An electric bus could use more than 800 pounds of copper within. Due to its conductivity, durability, and malleability it has become a primary component when making an electric vehicle. Let’s take a look at four copper stocks that have been performing well in the market.
Top Copper Stocks To Buy Or Sell
- Freeport-McMoRan Inc. (NYSE: FCX)
- Southern Copper Corporation (NYSE: SCCO)
- Rio Tinto Group (NYSE: RIO)
- BHP Group (NYSE: BHP)
First up on this copper stock list is Freeport-McMoRan Inc. Freeport-McMoRan is a mining company searching Tw 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. So let’s check out the most recent performance for this copper stock as of March 2021.
On March 24th, the company declared its quarterly cash dividend on common stock. The company’s dividend is for $0.075 per share of its common stock, payable on May 3rd, 2021. This will be given to stockholders on record as of April 15th, 2021. In its last quarterly reports, it reported copper and gold sales 3% and 9% above October 2020 estimates respectively. Its cash flow was strong, its capital management was solid, and it has been actively executing its operating plans. The President and CEO Richard C. Adkerson said, “During 2020, our global team responded to the challenges of the pandemic in an exceptional fashion, safeguarding our people, communities and assets as we executed and delivered on our clearly defined strategy. Together we achieved strong operating performance and project execution, establishing a solid foundation for future growth in sales volumes and cash flows.”
Southern Copper Corporation
Next up on this list of copper stocks to watch is Southern Copper Corporation. Southern Copper Corporation is a mining company 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. Let’s see how Southern Copper is performing in March 2021.
Its last earnings report missed EPS by 8.7%, despite beating revenue expectations by 2.9%. Its total sales were $8 billion in 2020. Its earnings per share were $2.03, which was 8.7% lower than analyst estimates. But now analysts predict revenues of $8.73 billion in revenue for 2021, which would be a 9.3% improvement if true. In the last year, SCCO stock has seen some solid gains. One year ago SCCO stock price was at $27 a share on average. Now SCCO stock is over $60 a share on average.
Rio Tinto Group
Now let’s talk about Rio Tinto Group. Rio Tinto Group will explore for, mine, and process various mineral resources. Its main products include aluminum, silver, molybdenum, copper, diamonds, gold, borates, titanium, salt, iron ore, and uranium. The company will also produce alumina, do aluminum smelting, and many types of mining. So what has Rio Tinto Group been up to in late March 2021?
Recently, Rio Tinto signed a memorandum of understanding with Heliogen. This is to use its technology at its borates mines located in California. This could lead to the roll out of operations worldwide. Heliogen uses thousands of computer controlled mirrors to get energy from the sun. The end goal is to make carbon free power and heat. Heliogen is recently notable by being backed by Bill Gates. The CEO of Rio Tinto, Jakob Stausholm said, “Addressing climate change effectively will require businesses, governments and society to work together through partnerships like this one, to explore innovative new solutions throughout the entire value chain. Our work with Heliogen is part of Rio Tinto’s commitment to spend approximately $1 billion on emissions reduction initiatives through to 2025 and our commitment to work with world-leading technology providers to achieve this goal.”
The final copper stock to watch is BHP Group. BHP Group works 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. So what is BHP Group up to now?
BHP stock was at just $35 a share as of March 2020. Now in March 2021, BHP stock price is at $67 a share on average. In the last 6 months, the company has moved up $17 a share in price. The company recently urged rivals to step up trading in the Australian spot gas market. It wants them to back a domestic price index, to keep government interference in the market. The head of energy at BHP, Sam Batholomaeus said, “We may not be able to emulate Henry Hub or large European gas markets … but that doesn’t mean we can’t have a healthy spot market.”
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