1 Copper Stock to Buy as Copper Prices Shine

The price of copper continues to climb, and more copper production is on the way for this top stock up 75% from 52-week lows.

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The price of copper continues to climb, and it’s causing many copper stocks to climb right along with it. But to really understand what’s been influencing these price movements, let’s take a step back. Today, we’ll look at what’s really going on with the price of copper, highlighting a copper stock that should continue to shine.

What’s happening with copper

The price of copper has been on a rising trend recently. As of early June 2024, the price of copper reached approximately $10,139 per metric ton, reflecting a 7.1% increase from the previous month and a 23.4% increase from the same period last year.

Key supply disruptions have significantly impacted the copper market. The closure of the Cobre Panama mine, which accounts for a substantial portion of global copper output, has tightened supply. Additionally, production issues in other major mining regions like Chile and Zambia have exacerbated the supply constraints.

Furthermore, while there are uncertainties in the Chinese economy, especially with its property sector, the overall global outlook is improving. Investments in infrastructure and the ongoing energy transition are boosting copper demand. This positive sentiment is partly driving the price surge despite headwinds from traditional industrial sectors.

Copper inventories tracked by exchanges like the Shanghai Futures Exchange have seen fluctuations, with recent increases in stockpiles. However, the market expects these inventories to decline as demand remains strong, further supporting higher prices. So, with more demand on deck, here is one that has seen a massive rise in stock price.

Ero Copper

Shares of Ero Copper (TSX:ERO) have been climbing higher on the back of higher copper prices. But there have been several positive developments influencing the rise in share price as well. 

Ero Copper’s Tucumã Project in Brazil has reached over 85% physical completion and is on track for its first copper production in the second half of 2024. This milestone significantly boosts investor confidence as it promises future revenue growth and expansion of the company’s production capabilities. 

The company reported strong financial results for the first quarter of 2024, showing robust earnings and solid cash flow. These positive financial metrics have likely contributed to the rising stock price as they indicate the company’s healthy operational and financial status.

As mentioned, the overall market for copper has been favourable, with copper prices increasing due to supply constraints and growing demand from the green energy sector. This broader market trend benefits copper producers like Ero Copper, enhancing their revenue prospects.

There has been an improvement in investor sentiment towards Ero Copper. Recent reports suggest that investors are becoming more optimistic about the company’s future prospects, which is reflected in the stock’s upward movement.

Bottom line

As copper prices continue to drive higher, Ero Copper stock is one to continue considering for your growth portfolio. With improving finances and more copper production on the way, it’s a great time to climb on board. Especially with shares up a whopping 75% from 52-week lows.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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