Many Canadian copper stocks are performing strongly in 2024, thanks in part to several tailwinds for the sector this year.
The price has since eased to US$4.37 per pound or US$10,296 per MT as of October 16, but remains elevated compared to 2023 prices.
Year-to-date gain: 80.16 percent
Market cap: C$970.99 million
Share price: C$3.32
Taseko Mines is a copper producer and developer that holds a portfolio of assets in British Columbia, Canada, and Arizona, US. Its primary asset is the Gibraltar copper mine, which is located in Central BC.
A crusher relocation project and general maintenance at one of the mine’s concentrators, alongside the strike, were the cause for the decreased production in H1. According to the company, it expects production in the second half of the year to be stronger now that operations are back online.
The announcement also provided an update on development progress of Taseko’s Florence project; all key permits are now in place for commercial production and construction has commenced. The company expects the first production from the site in Q4 2025, with an annual copper production of 85 million pounds.
Shares of Taseko reached a year-to-date high of C$4.12 on May 21.
Year-to-date gain: 74.66 percent
Market cap: C$4.86 billion
Share price: C$12.68
Hudbay Minerals is a copper production and development company with producing mines in Peru and Canada. It also has projects in Peru and in the US.
In Canada, Hudbay’s 75 percent owned Copper Mountain mine in BC produced 6,719 MT of copper, and its wholly owned Snow Lake operations in Manitoba produced 2,429 MT of copper despite forest fires causing interruptions at the Lalor mine. Both mines also produce gold and silver, and Snow Lake produces zinc as well.
In addition to its mining assets, the company is advancing its Copper World project in Arizona, US. In its report for the first quarter, the company indicates that it is continuing to work on getting final state permits for the site and expects to receive them sometime in 2024. When complete, Copper World is expected to have a 20 year life.
The company is also working on its Mason project in Nevada, US. Hudbay is developing Mason as a long-term future asset, and expects it to have a 27 year mine life. A resource estimate shows measured and indicated resources of 2.22 billion MT at an average grade of 0.29 percent copper, and inferred resources of 237 million MT grading 0.24 percent copper.
Shares of Hudbay reached a year-to-date high of C$14.15 on May 21.
Year-to-date gain: 72.22 percent
Market cap: C$53.89 million
Share price: C$0.62
Alta Copper is a copper exploration company that is working to advance its flagship Cañariaco project in Northern Peru. The project includes the Cañariaco Norte and Cañariaco Sur deposits and the Quebrada Verde prospect.
On the production side, Alta reported that the projected mine life is 27 years, with average annual metal production in the first 10 years of 347 million pounds of copper, 70,000 ounces of gold and 1.5 million ounces of silver.
The company said the drill programs will be used to cross and fill recently identified zones of mineralization extending to depth in the Canariaco Norte deposit, which were not included in the current mineral resource estimate.
It also said it had received Certificates of Non-Existence of Archaeological Remains on Surface from the Ministry of Culture of Peru.
Shares of Alta reached their year-to-date high of C$0.79 on May 21.
Year-to-date gain: 66.9 percent
Market cap: C$7.9 billion
Share price: C$10.62
Capstone Copper is a mining company with a portfolio of assets in the US, Mexico and Chile.
Capstone is the sole owner of the Cozamin copper-silver mine in Zecatacas, Mexico, which has a 1,000 MT per day throughput and is projected to generate 22,000 to 24,000 MT of copper in 2024. It also holds the Mantos Blancos copper mine in Antofagasta, Chile, which underwent an expansion in 2021 to extend its mine life significantly.
The figures were based on an annual copper production of 106,000 metric tons for the first seven years.
Shares of Capstone reached a year-to-date high of C$11.20 on May 17.
Year-to-date gain: 65.06 percent
Market cap: C$14.57 billion
Share price: C$17.86
First Quantum Minerals is a copper mining and development company with a global portfolio of assets.
The company is also operating several mines in Zambia, including its Kansanshi copper-gold mine, Sentinel copper mine and Enterprise nickel mine. First Quantum noted that production may be impacted in 2024 due to severe drought conditions in Zambia caused by El Nino, which has reduced water levels in the Kafue and Zambezi rivers. The government declared a national emergency in March, and power generation in the country has been impacted.
The increase has pushed the expected copper cash costs up to US$0.06 per pound from US$0.03 per pound. First Quantum says it will be able to sufficiently substitute curtailed power with imports for the duration of the emergency. The energy deficit is expected to ease with Zambia’s next rainy season, with hydro generation recovering by early 2025.
Shares of First Quantum reached a year-to-date high of C$20.00 on May 21.
Many experts have a positive long-term outlook for the red metal based on supply concerns and its growing role in the energy transition. Copper’s price has climbed to new all time highs in 2024, bringing many stocks with it.
Investors who are interested in copper should make sure to perform their due diligence, as the volatility and unpredictability of markets and economies at the moment means that nothing is guaranteed.
Two other growing sectors for copper are the burgeoning electric vehicle and green energy industries. Electric vehicles require a significant amount of the red metal per vehicle.
Investors can get exposure to copper in a variety of ways. Holding physical copper is possible, but plenty of storage would be required to hold any significant value of the metal.
Copper exchange-traded funds (ETFs) can be a good way to diversify an investment portfolio, and they can be a more stable option compared to individual copper miners or explorers. There are multiple options available on the market, and they can usually be purchased in the same way one could purchase stocks through a broker or trading platform.
The copper price is tracked in two ways: COMEX copper and London Metal Exchange (LME) copper. The COMEX and LME are both options and futures metal exchanges, with the former being headquartered in New York and the latter in London. COMEX copper is priced by the pound, while LME copper is priced per metric ton.
Once copper is mined, the ore goes through multiple steps to reach a market-ready state. First, the ore is ground to roughly separate the rock from the copper, as copper typically only makes up 1 percent of the mined rock.
The resultant copper is then slurried with water and chemical reagents, after which air is used to float the copper to the top of the mixture. After the copper is removed from this, it is typically at 24 to 40 percent purity.
Copper is mined throughout the world, with significant production found on every continent besides Antarctica. Chile was the top producer in 2022, putting out 5 million metric tons of the metal. Rounding out the top five are Peru with 2.6 million MT, the Democratic Republic of Congo with 2.5 million MT, China with 1.7 million MT and the United States with 1.1 million MT.
Article by Dean Belder; FAQs by Lauren Kelly.
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.
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