By industry estimates, copper demand is on track to double over the next 20 to 30 years. That’s driven by the metal’s use in traditional industries like plumbing and construction, but all thanks to a push for a low-carbon economy.
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Copper is one of the most affordable conductors out there, which makes it a crucial metal for the electrification of the modern economy. Throw in the recent reopening efforts in China, one of the largest markets for copper on the planet, and it’s hard to see the outlook for this industry as anything but bright. If you’re looking to play these trends, here are a handful of dedicated copper investments that may be worth a look in 2023.
| Stock or fund | Year-to-date performance as of April 14 |
| BHP Group Ltd. (ticker: BHP) | -0.8% |
| Rio Tinto PLC (RIO) | -0.6% |
| Freeport-McMoRan Inc. (FCX) | 14.4% |
| Southern Copper Corp. (SCCO) | 35.2% |
| Teck Resources Ltd. (TECK) | 21.1% |
| Hudbay Minerals Inc. (HBM) | 0.8% |
| Global X Copper Miners ETF (COPX) | 17.4% |
BHP Group Ltd. (BHP)
Clocking in at a $228 billion market capitalization, Australia’s BHP is one of the largest materials and mining companies on the planet. It has diversified operations that span the globe and mines that extract everything from copper to iron ore to gold to coal. BHP tallied more than 1.5 million tonnes of copper in fiscal year 2022 alone. For investors looking to play copper but not go all-in on a smaller miner with volatile operations, world-class BHP is a good investment to consider. It’s also worth noting that while payouts can be volatile, the trailing yield of 4.3% from this mining giant also adds to its appeal.
Rio Tinto PLC (RIO)
Though it’s half the size of BHP, diversified miner Rio Tinto is also worth a look. It’s not exactly small potatoes, with a $113 billion market value at present. Like BHP, it mines a bunch of materials including aluminum, gold, diamonds and lithium in addition to copper. In late 2022, Rio Tinto approved a new $55 million investment in Utah to begin mining copper in the region. Full production is expected by the second half of this year. If you’re looking to play a big miner that is increasingly getting into copper, then Rio Tinto’s recent investments could make it a good candidate. Beyond the immediate production coming this year, RIO stock should benefit from industry tailwinds for decades to come.
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Freeport-McMoRan Inc. (FCX)
At $60 billion in market value, FCX is the largest dedicated copper miner on this list. While it does extract other materials from its properties, including gold and even oil, its primary business is this base metal. In fact, its corporate slogan is “Foremost in Copper.” In its last annual report for fiscal year 2022, FCX recorded 4.2 billion pounds of copper sold that year. Based on this strong history as well as future growth potential for copper consumption worldwide, there’s little doubt that Freeport-McMoRan will have plenty of customers in the years ahead.
Southern Copper Corp. (SCCO)
SCCO is a copper company that operates mainly in Mexico and South and Central America. Through both its outright ownership as well as mineral interests, the company has some 3,300 square miles of explorable land in Peru, Argentina, Chile, Ecuador and Mexico. For comparison, that’s on par with the size of Miami-Dade County or San Diego County in size. With regional expertise as well as specialization in copper, SCCO is a great option for investors who want to play emerging-market demand for this metal in the years ahead.
Teck Resources Ltd. (TECK)
Teck is a kind of “goldilocks” copper play that is neither too big nor too small. It is a diversified Canadian mining company valued at about $25 billion, and about 25% of all its revenue comes from copper at present. It’s also investing heavily in future production, including at home via mines in British Columbia as well as newer mines in Chile and Peru.
That includes its Quebrada Blanca Phase 2 Project, currently under construction to help meet future demand. If and when copper demand or copper prices rise, it may not be immediately apparent in the balance sheet of larger and more diversified miners. But Teck is a midsize company that may see a bigger lift if the market changes in a significant way to favor its operations.
Hudbay Minerals Inc. (HBM)
The smallest individual stock on this list, diversified mining company Hudbay mainly mines copper, but like other picks here it also extracts gold, silver and other metals as part of its operations. In a March 30 resource update, HBM noted that its Constancia mine in Peru is expected to average 110,000 tonnes of copper production over the next three years, a 23% increase from 2022 levels.
The company also continues to expand its North American operations, including profitable Copper World site in Arizona, where Hudbay purchased the underlying minerals but left the privately-owned lands with the original property owners. Additionally, Hudbay announced on April 13 it had agreed to acquire Vancouver-based Copper Mountain Mining Corp., a deal it said would create the third-largest copper producer in Canada.
Global X Copper Miners ETF (COPX)
Can’t decide from among these individual names? Fortunately there is an established exchange-traded product to offer exposure to these stocks and others in the copper sector. COPX is a roughly $2 billion ETF that is composed of 48 holdings, including international names like Eastern Europe’s KGHM Polksa Miedz SA (KGHPF) and Asia’s Zijin Mining Group Co. Ltd. (ZIJMF) that aren’t easily accessible by Western investors. If you truly want to play global copper trends without worrying about which specific company is a winner and which one is a loser, then COPX is a good one-stop shop.
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7 Best Copper Stocks for 2023 originally appeared on usnews.com
Update 04/17/23: This story was previously published at an earlier date and has been updated with new information.
