It can feel a bit risky to get in on an investment as the price rises. Take gold, for example. The price is rising right now as investors look to hedge inflation. However, investors are likely to withdraw their cash from gold to put back in the market in a bull market once more.
However, the same theory doesn’t hold for copper stocks. That’s because, overall, the global economy is doing well, particularly in large countries like China and the United States. This is driving up demand for copper across many industries. But an even bigger factor is the demand for copper in the green energy sector. Copper is a key component in things like electric vehicles and renewable energy infrastructure, and the push toward these technologies is creating a long-term increase in demand.
Add to this, it’s getting harder to produce more copper. Existing mines are aging and struggling to increase output, and there aren’t enough new mines being developed to keep up with demand. This imbalance between supply and demand is pushing prices up. So, let’s look at three copper stocks to get in on the action.
Teck stock
While not a solely copper-focused company, Teck Resources (TSX: TECK.B) is a strong investment to consider. Teck stock is a diversified resource company with operations in various commodities, including copper, zinc, and steelmaking coal. This diversification can help mitigate risks associated with fluctuations in copper prices.
However, the company is still heavily invested in copper. Teck stock is one of the largest copper producers in North America. Its established market position, along with its operational expertise, allows it to benefit from economies of scale and maintain competitive advantages.
What’s more, Teck stock has been investing in expanding its copper production capacity and exploring new copper deposits. These growth initiatives can potentially enhance the company’s revenue and profitability in the long run, especially considering the projected increase in demand for copper. And right now, shares are rising by 24% in the last year alone.
Taskeko Mines
Another strong company to consider is Taseko Mines (TSX: TKO). Taseko Mines is primarily focused on copper mining, with its flagship asset being the Gibraltar Mine in British Columbia, Canada. As a copper-focused company, Taseko’s performance is closely tied to copper prices and demand.
Their primary asset, the Gibraltar Mine, is a producing copper mine with strong copper grades expected for 2024. If copper prices continue to climb, Taseko could benefit significantly. Plus, Taseko recently acquired the remaining ownership of the Gibraltar Mine, giving them full control of the project. This could streamline decision-making and potentially improve efficiency.
Overall, Taseko stock offers the potential for significant growth if copper prices keep rising and the Florence Copper project is successful. And shares are already surging, up 95% in the last year alone.
First Quantum
Finally, if you want in on copper stocks then First Quantum (TSX: FM) is also a solid choice. First Quantum has a presence in multiple countries, including Zambia, Panama, Mauritania, and Argentina. This spread reduces risk compared to companies reliant on a single mine. Their biggest mine, Kansanshi in Zambia, is a high-volume producer.
Furthermore, First Quantum has a history of increasing copper production, and they have plans for continued expansion at their Kansanshi mine. This could lead to significant future growth in copper output.
Then there’s the potential resolution in Panama. A major hurdle for First Quantum was a dispute with the Panamanian government regarding their Cobre Panama mine. While not fully resolved, there have been signs of progress in reaching an agreement. Settling this dispute could unlock significant future copper production from this mine. Shares are down 41%, so this is certainly a recovery stock. However, it’s already doubled in share price since 52-week lows.
