Will these copper stocks continue rising in value this month?
The market for copper stocks has grown a lot in the last few years. Copper stocks usually will move in tandem with the Global X Copper Miners ETF (NYSE: COPX). This ETF has given a return of more than 50% in the last year or so. This metal is important for a variety of reasons. Most wires in the world are made from copper because it is cost-effective and very conductive. This has resulted in all production of electric vehicles using many pounds of copper. There are already at least 5 million EVs on public roads in 2021.
Everyone has seen the huge growth of electric vehicles stocks like Tesla over the last year. As a result, copper stocks have experienced a lot of growth as well. Currently, the pandemic is impacting the price of copper. Many places around the world are recovering from COVID-19 still. There are also inflation fears right now that are impacting the price of metals like copper as well.
As the pandemic calms down, the industrial use of copper is increasing in the market. Because industrial corporations can operate to a full capacity now, the metal is being used a lot more. In addition to this information, the metal is performing well as the retail sector opens up as well. As more products that use copper are being sold, it is helping the sector perform better. Let’s take a look at three copper stocks that have shown good performance in the last few years.
Top Copper Stocks To Watch
Southern Copper Corporation (NYSE: SCCO)
Southern Copper Corporation is a copper stock that mines, explores, smelts, and refines copper. Its operations take place in countries like Peru, Mexico, Argentina, and more. It will also mine and mill copper ore to produce the metal. The company has over 290,000 hectares of land across all of its properties.
Not much recent information has come from Southern Copper recently. In fact, no company-specific news has been released in a while. So what is bringing SCCO stock up and down? Well, this copper stock often moves with the price of the metal itself. SCCO stock often follows the patterns of the Global X Copper Miners ETF as well. So even when the company has no recent news, there are ways to keep track of what may be impacting its stock price. One year ago, SCCO stock was at $43 per share while it is now at $60 per share on average. With this in mind, will you add SCCO stock to your copper watchlist this month?
Newmont Corporation (NYSE: NEM)
Newmont Corporation is a copper stock that produces and explores for various mineral resources. The company’s resources include copper, silver, gold, zinc, and lead. Newmont’s land is located in the United States, Mexico, Canada, Peru, and others. Its proven and probable gold reserves as of December 31st, 2019 totaled 100.2 million ounces. Overall this mining company holds more than 68,000 square km of land.
On July 15th, Newmont announced that it has enhanced its portfolio with the approval of the Ahafo North Project. The President and CEO Tom Palmer said, “I am pleased to announce the approval of full funding for the Ahafo North Project, expanding our existing footprint in Ghana and adding more than three million ounces of gold production over initial 13-year mine life. The development of this prolific ore body will leverage our proven operating model and will be supported by our existing world-class Ahafo South operation. The project will be developed and operated in a sustainable and responsible manner to create value for all our stakeholders.”
This project will create 1,800 jobs with more than 550 permanent jobs after the mine is operational. Before the pandemic, NEM stock was at $45 per share. In July 2021, the company’s stock price is at $60 per share on average. Is NEM a contender for your list of copper stocks to watch?
Rio Tinto Group (NYSE: RIO)
Rio Tinto Group is a copper stock that explores, mines, and processes mineral resources. This company offers a large variety of these resources. This includes copper, gold, iron ore, uranium, diamonds, and much more. In addition to its mines, it also operates mills, refineries, smelters, R&D facilities, and more.
On July 15th, Rio Tinto released its long-awaited second-quarter production results to the world. Chief Executive Jakob Stausholm said, “The global economy, in particular China, recovered strongly and we are intensely focused on servicing our customers with as much product as we can. However, we faced some challenges in the first half notably at our Pilbara operations, which were impacted by replacement mine tie-ins and materially higher rainfall.”
Stausholm went on to explain how heightened COVID-19 constraints added a lot of pressure on the business during these times. In the days following these results, RIO stock has fallen down in price. But this is a mining stock that often travels with the price of metals themselves. So if metals start to increase in value again, do you think that RIO stock could improve? And with that being said, will this be a contender for your copper stock watchlist?
Best Copper Stocks To Buy?
Some investors prefer to buy copper stocks while they are high, with the potential that they will move up more. Other investors will buy copper stocks while they are low, in hopes that they increase in value. No matter which way you decide to invest, what is most important is conducting proper research. Look into the company you plan on investing in, the state of the world, the current sector news, and more. Which copper stocks will make your watchlist in July?
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