Are these the right copper stocks to buy before next month?
When it comes to mining, copper stocks have been one niche that is increasing in value a lot. Most copper mining companies will explore, extract, and produce the metal. Currently, it is the third most used metal in the world. When the pandemic started, it made the price of copper stocks drop harshly in value.
Shortly after, things changed, and copper has seen a lot of upside in the last year. There is a worry for the supply of it at the moment and increased demand. This is especially the case in China, one of the largest growing markets for the metal. Generally, copper stocks will move with the Global X Copper Miners ETF (NYSE: COPX). This ETF has given a return of more than 50% in the last year.
Copper is important for a variety of reasons. Most wires in the world are made from copper because it is cost-effective and conductive. This has resulted in all production electric vehicles using many pounds of copper. The metal is essential to use in EVs, which there are already 5 million on public roads. Everyone has seen the huge growth of electric vehicle stocks like Tesla over the last year. Often when EVs perform well, copper and lithium will as well, since they are used in the vehicles.
Copper is used in nearly all major electric vehicle components. With markets growing so rapidly, you need to know the best copper stocks to watch if you want to invest. Let’s have a look at four of these assets that are potential buys.
Top Copper Stocks To Buy
- BHP Group (NYSE: BHP)
- Southern Copper Corporation (NYSE: SCCO)
- Hudbay Minerals Inc. (NYSE: HBM)
One of the higher-priced copper stocks is BHP Group. BHP Group works in the natural resources field, its main products being petroleum, copper, iron ore, and coal. It also mines for silver, zinc, uranium, gold, and more. The problem when deciding if BHP stock is good to invest in is that that company has not released any recent updates.
The latest we heard from BHP Group was on April 9th. Samarco Mineracao SA, a joint venture between BHP and Vale S.A., filed for bankruptcy protection to stop creditors’ claims from impacting its operations. Despite not having any recent updates, BHP stock performs very well because of copper demand and prices. BHP stock is up nearly 3% in the last 5 days and about 50% in the last 6 months.
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Now we await the next update from BHP, or the company’s stock price will likely continue moving thanks to copper prices. Its stock price is also going up because of the increased demand for iron ore at the moment.
Southern Copper Corporation
A copper stock similar in price to BHP is Southern Copper Corporation. SCCO explores, mines, smelts, and refines copper primarily. Southern Copper operates mines in Peru, Mexico, Ecuador, Argentina, and Chile. The company’s primary functions are mining and milling copper ore. Just like the last copper stock, southern copper has not released many recent updates.
Copper prices are continuing to grow stronger at the moment. For this reason, SCCO stock is up 1.55% on April 26th. While this may not seem notable, you must look at the bigger picture. This copper stock is up more than 41% in the last 6 months and nearly 6% in the last month. These are sizeable gains for those invested in the company. The next large push for copper stocks could be when earnings season comes around for these companies.
Hudbay Minerals Inc.
Hudbay is a copper stock that actually has released some recent updates. Hudbay Minerals is a mining company that will discover, produce, and market base and precious metals. It also produces copper concentrates containing copper, gold, and silver. On April 6th, Hudbay released a positive preliminary economic assessment for its Mason Copper Project.
The company believes that the project has the potential to more than double its current copper production levels. When brought into production, Mason could become the third-largest copper mine in the U.S.
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The CEO of the company, Peter Kukielski, said, “The Mason PEA demonstrates the success of Hudbay’s consistent growth strategy and our team’s ability to create value from accretive acquisitions of high-quality copper projects in mining-friendly jurisdictions.” The Mason project is a huge copper deposit in Nevada. Its resource estimates are projected to be twice the size of Hudbay’s Constancia and Rosemont deposits.
Now Hudbay will be hosting a conference call for its first quarter 2021 results. This will take place on Wednesday, May 12th. Could May be the month that many copper companies release financial results? That is unsure, but it is for sure with Hudbay Minerals, who has recently seen a lot of positive performance. In the last month, HBM stock has gone up more than 20%.
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