As 2021 continues on, many copper stocks are performing well in the market
Copper stocks can sometimes be overlooked when investors are looking to enter the mining sector. This is due to the popularity of commodities related to gold and silver. What these investors do not realize is that many copper stocks are making large gains in the market. In the last year, the market for copper has grown exponentially.
So why is copper going up in value so much? The metal’s rise to fame is due in part to electric vehicles. All battery electric vehicles used hundreds of pounds of copper in them. Even your traditional gas-powered vehicles use copper. As the electric vehicle market has grown to be very popular, the demand for copper has increased a lot in the market. This is similar to the market for lithium stocks, which have also performed very well in the last year.
Looking out for sector news is a very essential step when investing in mining stocks. For example, if there is a copper shortage and the price goes up, you will want to know this information right away as it affects related stocks. While copper prices are the main driving factor of these stocks, often company-specific news will have a large impact on a company too. This can be anything from financial results to sustainability reports. There is a lot of mining companies that have potential in the market right now. With that in mind, let’s have a look at three copper stocks to watch as July continues forward.
Top Copper Stocks To Watch
- Rio Tinto Group (NYSE: RIO)
- BHP Group (NYSE: BHP)
- Vale S.A. (NYSE: VALE)
Rio Tinto Group (NYSE: RIO)
Rio Tinto Group is a mining stock that has been performing well in the market recently. The company explores, mines for, and processes various mineral resources. Its offerings include copper, gold, diamonds, aluminum, among much more. The company actively owns and operates open-pit mines and underground mines.
On July 8th, Rio Tinto and POSCO, the largest steel producer in South Korea, signed a memorandum of understanding for a joint venture. This climate-related MOU will have the companies exploring and developing tech for transitioning to low-carbon emission steel operations. Both companies aim to achieve net-zero carbon emissions by the time 2050 arrives.
The VP of Iron Ore Sales and Market at Rio Tinto, Simon Farry said, “This partnership with POSCO, a valued and long-standing customer, demonstrates our combined commitment to working together to identify ways to reduce emissions across the steel-making process. The agreement also complements Rio Tinto‘s partnerships with other customers as the industry focuses on developing technologies that support the transition to a low-carbon economy.” When 2021 started, RIO stock was at $77 per share on average. Now the company’s stock price is at $85.50 per share on average as of July 9th. Throughout 2021, the company has experienced a lot of ups and downs in the market. With all of this in mind, is RIO a contender for your list of copper stocks to watch?
BHP Group (NYSE: BHP)
BHP Group is a copper stock that explores and develops properties. The company’s primary resources are copper, gold, silver, zinc, uranium, iron ore, and more. BHP is involved in the processes of mining, smelting, and refining metals. In addition to the materials it mines for, the company has production operations at oil and gas properties as well.
On June 23rd, the company’s Chief Technical Officer Laura Tyler announced that it plans to double its exploration budget for base metals in the next 5 years. Tyler claims that the company has spent less than it should have been on exploration. The spending will now go from the current $70 million to $80 million. Back in March, the company moved its head office for global exploration to Toronto from Chile. Tyler stated, “That allows us almost to be closer to the action”.
In the last 5 days, BHP stock has gone from $72 per share on average to $76 per share. This increase in value has to do with the rising prices of copper and other materials this week. The company’s volume is currently lower than its average. With all of this info to note, will BHP make your copper stock watchlist?
Vale S.A. (NYSE: VALE)
Vale S.A. is a copper stock that has been increasing in market value this week. The company has various operations that contribute to its success. Its ferrous minerals operations include producing and extracting iron ore and manganese among other products. The company’s base metals operations produce and extract copper, nickel, gold, silver, and more. Vale also engages in the extraction of various types of coal.
At the very end of June, Vale invested $150 million CAD into extending the life of its operations in Manitoba. Its current mining activities in the region have now been extended by 10 years. The Executive VP for Base Metals at Vale, Mark Travers said, “This is the largest single investment we have made in our Thompson operations in the past two decades. It is significant news for our employees, for the Thompson community, and for the Province of Manitoba. The global movement to electric vehicles, renewable energies, and carbon reduction has shone a welcome spotlight on nickel – positioning the metal we mine as a key contributor to a greener future and boosting world demand. We are proud that Thompson can be part of that future and part of the low carbon solution.”
[Read More] Top Copper Stocks To Watch
When 2021 started, VALE stock was at $17.40 per share on average. On July 9th, VALE’s stock price has reached $22.45 per share. This is significant progress for a mining stock in 2021, as not all companies in the sector have had similar performance. Will you add VALE to your copper stock watchlist?
The Future of Copper Stocks
Copper continues to be one of the most used metals in the entire world. As the electric vehicle sector grows, more of the metal will be needed. Increased demand and higher prices are what is driving many copper stocks up at the moment. Multi-faceted mining stocks that look for other materials are performing well because of rising metal prices as well. Which companies will make your list of copper stocks to watch?
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