Copper stocks are in the mining sector and generally trade based on the performance of the Global X Copper Miners ETF. Copper companies in general engage in exploration, extracting, and production of the metal. This metal has grown to be the third most used in the entire world. There are a few reasons this has taken place, but one of them is glaring. In the last five years, the production and sales numbers for EVs have drastically increased. Your everyday car has anywhere between 18-49 pounds of copper in it. Battery electric vehicles, on the other hand, use around 183 pounds of copper per vehicle.
The largest electric vehicle producer, Tesla, delivered more than 500,000 electric vehicles in 2020 alone. This is a huge growing industry, and copper is a necessity when it comes to the production of EVs. Its conductivity, durability, and malleability make it very ideal for the batteries used in these vehicles. The metal is used in the motor, inverter, wiring, battery, and more. There is about a mile of copper wiring in most production electric vehicles.
There are a few things to look for if you intend on investing in copper stocks. Recent company news, sector news, and world news all impact the direction that companies move in this sector. Volume is an important factor to look at when investing in these mining stocks as well. If a company’s volume is higher than normal, it can have different implications. Sure, copper is not as valuable as silver as gold, but is a very valuable metal for the economy. Let’s take a look at some copper stocks that have shown positive performance in the market.Top Copper Stocks To Watch
- Southern Copper Corporation (NYSE: SCCO)
- Freeport-McMoRan Inc. (NYSE: FCX)
- Newmont Corporation (NYSE: NEM)
Southern Copper Corporation is a mining stock that mines, explores, smelts, and refines copper. Its operations take place in countries like Peru, Mexico, Argentina, and more. It will also mine and mill copper ore to produce the metal. The company has over 290,000 hectares of land across all of its properties.
In August, Peru asked for help from Southern Copper and Las Bambas. The country would like to build a rail system from a mineral-rich Andean zone to its central Pacific coast. A representative from both companies said that they were open to discussing participation in the railroad. This railroad would be used to transport both people and commodities.
The technical evaluation stage is what the railway is in right now, and construction would start in 2023. The VP of Finance at Southern Copper, Raul Jacob said, “We consider it an interesting project that must be carefully evaluated.” With this potential development in mind, will SCCO make your list of copper stocks to watch?Freeport-McMoRan Inc. (NYSE: FCX)
Freeport-McMoRan is a mining company that finds copper, gold, silver, molybdenum, and other precious metals. It mainly operates assets in North America, South America, and Indonesia as well. Freeport-McMoRan has operations that look for oil and gas too. As of December 31st, 2020, the company operated about 165 wells.
On September 22nd, the company declared its quarterly cash dividend on common stock. The cash dividend of $0.075 per share of FCX’s common stock was declared by its Board of Directors. This dividend is payable on November 1, 2021, to stockholders on record as of October 15, 2021. Freeport-McMoRan expects the Board to consider the number of additional cash returns to shareholders following its 2021 annual results. On September 27th, FCX stock went up by 5% in the market. The company’s volume is also millions higher than its average at the moment. So will FCX make your copper stock watchlist?Newmont Corporation (NYSE: NEM)
Newmont Corporation is a mining penny stock we have mentioned a lot before on goldstocks.com. This is a mining company that operates out of Colorado and has had a lot of momentum in the market this past year and a half. The company primarily focuses on the production and exploration of resources such as gold, silver, copper, zinc, and lead too. It has property or assets in the US, Canada, Mexico, Peru, and more. At the endpoint of 2020, the company had proven and probable gold reserves of 94.2 million ounces, and 58,900 square kilometers of land.
Newmont’s Yanacocha sulfides project to expand gold production in Peru has been delayed as of September 22nd. The company has announced that it will be developed at whatever pace the pandemic allows it to. Newmont has already committed $500 million to invest in this project, which is located near its Yanacocha gold mine. This would extend the life of all of Yanacocha past 2040. Since Peru has the highest per capita death rate caused by the pandemic, restrictions lead to some negative progress for Newmont Corporation. It will be interesting to see how NEM stock performs amid these developments. Keeping this in mind, will NEM stock make your copper watchlist right now?Top Copper Stocks To Buy?
Deciding which copper stocks to buy can be a strenuous process. That is why doing proper research can help a lot when investing in this sector. If you are new to the copper sector, get to know its ins and outs a little first. Whether you’re a seasoned investor or a newbie to copper stocks, there are a lot of great options for your watchlist. Based on this information, which copper stocks will make your watchlist in October 2021?