Top copper inventories for Q4 2022

Top copper inventories for Q4 2022

The copper industry is made up of companies involved in the exploration, mining, development and production of copper, one of the most widely used metals. Copper demand is closely linked to economic cycles as it is used for a wide variety of applications including construction, electronics, industrial machinery, transportation, power generation and transmission. The biggest names in the industry include Freeport-McMoRan Inc., Australia-based OZ Minerals Ltd. and China-based Zijin Mining Group Co. Ltd.

Copper stocks, represented by the Global X Copper Miners ETF (COPX), underperformed the broader market. COPX has delivered a total return of -15.5% over the past 12 months, below the -10.7% return for the S&P 500 over the same period. These market performance figures and all statistics in the tables below are as of September 13, 2022.

Here are the top 3 copper stocks with the best value, fastest growth and best performance. These are stocks of companies that mine for copper, rather than futures that track the copper commodity.

These are the copper stocks with the lowest price-earnings ratio over 12 months. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows that you are paying less for every dollar of profit generated.

Best Value Copper Stocks
Price ($) Market Capitalization ($B) 12 month ongoing P/E ratio
Lundin Mining Corp. (LUN.TO) €7.24 €5.6 6.0
EroCopper Corp. (ERO.TO) €14.33 €1.3 6.4
Capstone Copper Corp. (CS.TO) €3.14 € 2.2 6.7

Source: YCharts

  • Lundin Mining Corp.: Lundin Mining is a Canada-based company engaged in the mining and exploration of copper, zinc, gold and nickel and other metals, as well as mineral property development in Chile, Brazil, Portugal, Sweden and the US. over-the-counter (OTC) in the US under the ticker LUNMF. The company said a sinkhole formed on July 30 near the Alcaparrosa mine at Chile’s Minera Ojos del Salado operation. According to the company’s latest report on August 18, operations at the mine remained suspended.
  • Ero Copper Corp.: Ero Copper is a Canadian-based mining company engaged in the production and sale of copper, gold and silver at mining sites, primarily in Brazil. The company also has shares traded on the New York Stock Exchange (NYSE) in the US under the ticker ERO.
  • Capstone Copper Corp.: Capstone Copper is a Canadian-based copper mining company. The activities mainly take place in the US, Mexico and Chile. Capstone also has stocks traded over-the-counter in the US under the ticker CSCCF. On August 25, Capstone announced that its operations in Chile’s Mantos Blancos and Mantoverde had committed to the Copper Mark, a United Nations framework that promotes responsible manufacturing practices and sustainable development. The Copper Mark currently includes six of the 10 largest copper producing companies worldwide.

These are the best copper stocks, ranked by a growth model that rates companies based on a 50/50 weighting of their most recent quarterly YOY percentage revenue growth and their most recent quarterly YOY earnings per share (EPS) growth. Both sales and profits are critical factors for a company’s success. Therefore, ranking companies by only one growth metric makes a ranking susceptible to that quarter’s accounting anomalies (such as changes in tax laws or restructuring costs) that may make one number or the other unrepresentative of the company in general. Companies with quarterly earnings per share or revenue growth of more than 2500% were excluded as outliers.

Fastest Growing Copper Stocks
Price ($) Market Capitalization ($B) EPS growth (%) Revenue growth (%)
First Quantum Minerals Ltd. (FM.TO) €23.49 €16.3 211.5 11.0
Capstone Copper Corp. (CS.TO) €3.14 € 2.2 -4.8 76.9
Turquoise Hill Resources Ltd. (TRQ) 30.96 6.2 -19.6 21.9

Source: YCharts

  • First Quantum Minerals Ltd.: First Quantum Minerals is a Canada-based mining company that explores and produces copper, nickel, gold, silver, zinc and acid. First Quantum operates mines in Turkey, Spain, Finland and Zambia, among others. It also has stocks that trade OTC in the US under the ticker FQVLF. First Quantum reported earnings results for the second quarter of 2022 on July 26. Net income attributable to the company’s shareholders tripled year-over-year (YOY) on rising revenues. The company said COVID-19 restrictions had been largely relaxed, although high inflation and a global economic slowdown negatively impacted performance.
  • Capstone Copper Corp.: See above for company description.
  • Turquoise Hill Resources Ltd.: Turquoise Hill Resources is a Canadian-based mining company engaged in the exploration and development of mineral and metal properties in Asia and Australia. The most important asset is the Oyu Tolgoi copper and gold mine in southern Mongolia. On August 4, Turquoise Hill reported its second quarter 2022 results. Revenue for the period declined 27% year-over-year as revenue increased. Copper and silver revenues were up year on year, while gold revenue growth remained virtually flat.

These are the copper stocks that had the best returns or the smallest decline in total returns in the past 12 months of the companies we looked at.

Best Performance Copper Stocks
Price ($) Market Capitalization ($B) 12 months sequential total return (%)
Turquoise Hill Resources Ltd. (TRQ) 30.96 6.2 103.7
First Quantum Minerals Ltd. (FM.TO) €23.49 €16.3 -1.8
Freeport McMoRan Inc. (FCX) 31.05 44.4 -10.7
Russell 1000 N/A N/A -10.7
Global X Copper Miners ETF (COPX) N/A N/A -15.5

Source: YCharts

  • Turquoise Hill Resources Ltd.: See above for company description.
  • First Quantum Minerals Ltd.: See above for company description.
  • Freeport-McMoRan Inc.: Freeport-McMoRan is engaged in the mining of copper, gold and molybdenum. The company has mining operations in both the Americas and Indonesia.

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