The copper sector has been a silent but strong growth sector in the last year. Companies involved with copper have seen a surge in high demand for the product. And that demand isn’t going anywhere.
Copper is a key material in renewable energy technologies like wind turbines, solar panels, and electric vehicle batteries. As the world transitions to cleaner energy sources, demand for copper is skyrocketing. Copper is also widely used in construction, electronics, and other industries. A strong global economy tends to lead to increased demand for copper across these sectors.
Furthermore, there continues to be limited mine production. Opening new copper mines can be a lengthy process due to environmental regulations and permitting. Additionally, existing mines may not be expanding production as quickly as demand is rising. Not to mention, there are copper-producing countries facing political instability. This is why today we’re going to look at three copper stocks that are soaring, providing you with growth, even with just $200 to spare.
Lundin stock
One of the biggest winners of the last year has been Lundin Mining (TSX: LUN). Lundin stock is up 51% in the last year alone and climbing, all while earnings are around the corner. The stock saw a huge surge in copper production in the last year. However, it believes even more can be produced in 2024 as well.
Yet, even with so much growth, shares of Lundin stock trade are at just $15.50 as of this writing. It also provides value, trading at 1.8 times book value at the time of writing. The copper stock, therefore, continues to have a strong balance sheet, growth, and even a 2.29% dividend yield to consider. Altogether, it’s likely the best of the best when looking at copper stocks.
Teck stock
Another company that gives investors exposure to copper stocks is Teck Resources (TSX: TECK.B). The company produces copper and other basic materials. This can be beneficial if you want exposure to copper but don’t want a fallback should the price come down in the next few years.
That doesn’t look likely, but diversification is always a great idea. And Teck stock offers that. The company has also been performing well, with production up across the board. Shares are up 14% in the last year, yet again, it still offers value. Teck stock currently trades at $67 per share as of writing. It trades at 1.34 times book value as well, and again offers a small dividend at 0.74% as of writing.
Capstone Copper
For another pure copper stock play, if you really want to get in on the future growth, consider Capstone Copper (TSX: CS). This copper stock has several projects across North and South America. Furthermore, its production is in the hundreds of millions of pounds of copper produced each and every year. And that doesn’t look to be slowing down.
The copper stock is now up 49% in the last year at $9.50 per share and, again, offers value trading at 1.97 times book value. While it doesn’t offer a dividend, it does offer the growth and security you need. It holds a stable balance sheet, low debt, and continued growth from copper production.
