Best Copper Stocks on the TSX

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Copper had a stellar first half of 2021, with prices rallying to their all-time highest level on record during Q2.

Unlike the first half of 2020, the trend in copper prices was upward for most of the first half of this year, with the red metal hitting an all-time high in May.

Heading into the home stretch of 2021, copper prices still reflect a robust market, and there is plenty of optimism that the red metal remains in bullish territory. Many analysts and companies expect copper to boom in the coming years as electrification and electric vehicles grow in popularity, and subsequently increase the world’s appetite for the vital base metal.

Some of the top copper stocks on the TSX so far have seen significant gains year-to-date, as shown on the list below. The list was generated on October 28, 2021, using TradingView’s stock screener, and only companies with market capitalizations greater than C$50 million at that time were included.

1. Solaris Resources (TSX:SLS)

Current share price: C$14.35; year-to-date gain: 136.02 percent

Solaris Resources has a portfolio of copper and gold projects in the Latin American region, including in Ecuador, Chile, Peru and Mexico. The company has established a high-grade resource with expansion and additional discovery potential at the Warintza copper-gold project in Ecuador.

Solaris has had steady flow of news in 2021 from its drilling program at Warintza. In September, the company reported 1,184 meters of 0.68 percent copper equivalent from surface at the project’s Central zone. The company’s drilling efforts continue to expand the footprint of this zone toward defining a large, high-grade open-pit resource.

2. Copper Mountain Mining (TSX:CMMC)

Current share price: C$3.74; year-to-date gain: 106.08 percent

Copper Mountain Mining’s flagship asset is the Copper Mountain mine, located in British Columbia near the town of Princeton. It produces about 100 million pounds of copper equivalent per year.

In Q2, Copper Mountain’s production was 29.6 million pounds of copper equivalent. The company has raised its 2021 production guidance to a range of 90 million to 100 million pounds.

3. Josemaria Resources (TSX:JOSE)

Current share price: C$1.30; year-to-date gain: 68.83 percent

Josemaria Resources is advancing its wholly owned namesake Josemaria copper-gold-silver project in Argentina’s San Juan province. According to the company, the asset is one of the largest undeveloped copper-gold projects in the world, with a proven and probable reserve profile of 6.7 billion pounds of copper, 7 million ounces of gold and 31 million ounces of silver.

An October 2020 feasibility study shows an open-pit operation and a 152,000 tonne per day conventional process plant with a 19 year mine life. Highlights from the study include a US$1.53 billion after-tax net present value at a discount of 8 percent, and a 15.4 percent internal rate or return; figures are based on metal prices of US$3 per pound copper, US$1,500 per ounce gold and US$18 per ounce silver. The project is proceeding to basic engineering with the goal of completion during Q2 2022; the company anticipates that the environmental social impact assessment process will be completed in H1 2022.

4. Amerigo Resources (TSX:ARG)

Current share price: C$1.35; year-to-date gain: 68.75 percent

Amerigo Resources has a long-term relationship with the world’s largest copper producer, Chilean state-owned Codelco. Through this relationship, Amerigo produces copper concentrate and molybdenum concentrate as a by-product by processing fresh and historic tailings from the world’s largest underground copper mine, Codelco’s El Teniente operation.

Amerigo’s Q3 production figures from its Minera Valle Central tailings processing facility in Chile include 16 million pounds of copper, of which 11.5 million pounds were from fresh tailings. The company notes that its third quarter production was 109 percent above guidance for the period due to higher fresh tailings tonnage and grade.

5. Teck Resources (TSX:TECK.A,TSX:TECK.B)

Current share price: C$35.63; year-to-date gain: 54.07 percent

Last on this best copper stocks list is Teck Resources, one of Canada’s top mining companies. Teck has a diverse portfolio in terms of both metals and geography. When it comes to copper, Teck is a significant producer with four operating copper mines and a robust pipeline of copper projects in the Americas.

Teck’s ties to a green energy metal like copper have paid off well, as the company’s share price has benefited immensely from rising copper prices in 2021.

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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.