While attention might mainly be on gold prices, investors might be more surprised to hear that copper prices have hit a 14-month high! The spot price of copper now sits at about US$9,400 per ton. So let’s get into why, and how investors can get in on the action.
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What happened
The continued rise in the price of copper comes as investors flock to the metal as supply chain demand rises. And, of course, there is hope that the world is currently undergoing a recovery, which would lead to more investment and use of the material.
Prices rose further as comments came from the Federal Reserve noting that interest rates remained tempered. Furthermore, there continue to be disruptions at some major mines, leaving mounting supply risk for those purchasing the material.
With that in mind, any company seeing strong growth and production from its copper arms would be a strong buy. If it doesn’t have disruptions and operates in relatively stable countries on a geopolitical level, then this production could likely continue. And these are the two I would consider first.
Lundin Mining
Lundin Mining (TSX: LUN) has been on a tear this year thanks to its production of copper. Lunden stock has about 63% of its overall production dedicated to copper, with more mines also under way to produce even more. This comes after delivering a record year in terms of copper production to investors, but stating it’s looking to produce even more this next year.
As for where it produces copper, Lundin currently operates out of Portugal, Brazil, the United States, and Sweden, as well as Canada. These are all stable countries that shouldn’t see any risk to copper production over the next year.
What’s more, the company has been expanding. Lundin stock reported that it acquired Chile’s Casseroles copper mine during its recent report. Plus, it’s expanding the Neves-Corvo project, which contributed to record zinc production for the stock as well. So with even more growth coming for Lundin stock, as shares are up 56% in the last year, it’s definitely one to buy as copper prices rise.
Teck stock
Another company that investors will want to consider with the rise in copper prices is Teck Resources (TSX: TECK.B). While Teck stock does invest in copper production, it’s not the only thing it does. Nor does it take up an enormous part of its overall portfolio. So this could be good for investors looking to get more diversification while still seeing a rise from copper prices.
Teck operates copper operations in the Highland Valley Copper mine in British Columbia, as well as in Chile through several mines in the country. It has also been expanding these operations over time. Even as it splits off its steel-making coal business to provide even more growth for shareholders.
Meanwhile, Tech stock’s performance has been improving significantly, with shares up 9% in the last year, and 39% since hitting 52-week lows. So now could be an opportune time while the company climbs past 52-week highs.
