Top 5 Copper Stocks to buy in 2022 by analyst from Blue Royal Investments


London, UK — Since the red metal Bull Run in late 2020, copper has made quite a spark among investors. Experts have predicted metal copper will emerge in a bull market. Because of its industrial value, adaptable metal has become a global market essential.

The introduction of electric cars is booming. As more manufacturers announce the end of petrol cars, investors’ interest in battery metals has increased. Lithium and cobalt are the battery metals that are getting the most attention. Tesla just signed a cobalt supply agreement with Glencore to prevent a potential supply constraint.

Carbon neutrality and electric vehicles are focusing a lot of attention on battery metals. Because of its versatility, copper has become a cornerstone in the struggle for carbon neutrality. It is utilized in electric vehicles and in wind turbines, solar panels, hydroelectric power plants, and energy storage.

There are many options to consider when it comes to investing in copper. Investing directly in metal copper or derivatives is one option. This is a safe investment with minimal risk and gives a low profit. According to George Walton, a stock analyst at Blue Royal Investments, Copper mining stocks and copper exploration stocks are the simplest and most indirect ways to invest.

What are copper stocks?

Copper stocks are the shares of companies that mine and operate copper. These shares (stocks) indicate a portion of the company’s ownership. Depending on the amount of copper stock owned, the owner is allowed To share the company’s assets and revenue. The level of risk differs according to the nature of copper stock.

Copper stocks are seeing a rise in demand for a variety of reasons. The goal of achieving zero pollution by 2050 is one of them. Copper is an excellent conductor of electricity and hence plays a critical role in the evolution of renewable power. The shift to electric vehicles would also play a crucial role in achieving zero pollution. In comparison to traditional petrol cars, electric vehicles require up to 5 times the amount of copper.

Unfortunately, supply and demand do not always match. By 2030, it is expected that there will be a huge gap between copper supply and demand unless there are significant additional copper discoveries.

In Canada and the United States, numerous mining and research organizations are listed on various stock exchanges. These “copper stocks” come in a variety of pricing points and risk levels.

Top 5 Copper stocks to buy in 2022

Your investment goals will guide you in selecting the best Copper stocks for your portfolio. To assist you with your search, this Copper stocks list covers the top five performing companies in the market.

1. BHP GROUP (BHP)

BHP Group is a global leader in natural resource production. Copper, iron ore, nickel, metallurgical coal, and potash are all mined there. This corporation owns and runs multiple copper mines in Chile as well as one in Australia. In 2021, its firm generated 1.6 million tons of copper. To satisfy rising demand, it is substantially investing in expanding its copper output.

The BHP Group expects to complete an expansion of its Spence copper mine in Chile’s desert by the end of 2020. It has also secured many long-term exploration collaborations and early-stage expansion possibilities to satisfy the predicted rise in copper demand over the next few years.

The BHP GROUP was established in 1885. It has its headquarters in Melbourne, Australia. The shares of this company are listed on NYSE under the ticker symbol BHP. The current Earnings per Share (EPS) are 6.28, and the Price to Earnings Ratio (P/E) is 11.30. The current market capitalization of BHP GROUP (BHP) is $ 158.03 Billion.

2. FREEPORT-MCMORAN (FCX)

Freeport-McMoRan is one of the top publicly listed copper producers in the world. It also yields gold and molybdenum, which are utilized in elevated steel alloys. The Grasberg project in Indonesia, and the world’s biggest copper and gold sources, is the royal gemstone of Freeport’s portfolio. In addition, the business manages large-scale mines in Arizona and Peru. In 2021, the firm produced 3.8 million pounds of copper.

The company’s expanding copper output could support higher cash returns to stockholders. It has established a structure for allocating up to 50% of its excess cash flow to shareholder distributions such as dividends and share purchases.

The FREEPORT-MCMORAN was established on November 10, 1987. It has a headquarters in Phoenix, Arizona, United States. The shares of this company are listed on NYSE under the ticker symbol FCX. The current Earnings per Share (EPS) are 3.45, and the Price to Earnings Ratio (P/E) is 11.50. During first quarter 2022, Freeport-McMoRan revenues increased 36% to $6.6B. The current market capitalization of FREEPORT-MCMORAN (FCX) is $ 57.46 Billion.

3. SOUTHERN COPPER (SCCO)

Southern Copper is one of the world’s biggest copper producers. It has copper mines in both Mexico and Peru. In the short term, the corporation predicts a decrease in output as legacy reserves dwindle. However, the company expects strong output increases in the long run.

The firm has approved several large-scale expansion projects that will boost long-term copper growth. It plans to invest an average of $1.9 billion per year over the next decade to enhance copper production. Southern Copper intends to continue paying out a large share of its earnings in dividends, even with additional investments.

The SOUTHERN COPPER was established in 1952. It has a headquarters in Phoenix, Arizona, United States. The shares of this company are listed on NYSE under the ticker symbol SCCO. The current Earnings per Share (EPS) are 4.42, and the Price to Earnings Ratio (P/E) is 14.20. For the first quarter 2022, Southern Copper Corp revenues increased 9% to $2.76B. Net income increased 3% to $784.7M. The current market capitalization of SOUTHERN COPPER (SCCO) is $ 48.47 Billion.

4. Turquoise Hill Resources (TRQ)

Turquoise Hill is a global mining corporation focusing on the operation and expansion of the Oyu Tolgoi copper-gold mine in Mongolia, Which is the company’s primary and only material mineral resource asset. The company’s operations are focused on copper, gold, and silver. In 2020, the company produced 149,631 tons of copper, exceeding its target of 140,000 tons.

The company was established in 1994. It has headquarters in Montreal, Canada. The shares of this company are listed on NYSE under the ticker symbol TRQ. The current Earnings per Share (EPS) are 2.8, and the Price to Earnings Ratio (P/E) is 9.98The current market capitalization of Turquoise Hill Resources (TRQ) is $ 5.62 Billion.

5. Vale S.A. (VALE)

Vale S.A. is a metals mining organization that primarily produces copper, iron ore, nickel, and other metals. In addition to mining and development, the company is one of the largest in Brazil and provides logistical services connected to these metals. According to valuation indicators, the firm may be undervalued. Its Value Score suggests that it would be a solid choice for value investing. VALE’s financial health and development prospects show that this company could make a lot of money.

The company Vale S.A. was established on June 1, 1942. The headquarters are in Rio de Janeiro, the State of Rio de Janeiro, Brazil. The shares of this company are listed on NYSE under the ticker symbol VALE. The current Earnings per Share (EPS) are 5.38, and the Price to Earnings Ratio (P/E) is 3.36. Vale SA revenues decreased 18% to R$56.72B. Net income applicable to common stockholders was decreased 27% to R$23.04B. The current market capitalization of Vale S.A. (VALE) is $ 85.88 Billion.

Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find in this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.

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