Raymond James analysts recently gave their top copper stocks to watch this year. We run through the companies here.
As demand for copper grows while a global pipeline of projects begins to dwindle, the red metal has been one hot commodity over the last few months.
Between supply concerns and growing optimism surrounding a possible US-China trade deal, copper’s price point has flexed through 2019. Going forward, some analysts predict copper prices will continue to trend upwards, with a likely chance of surpassing the US$7,000 per tonne mark in the year ahead.
In their latest report, Raymond James analysts shared their top copper stocks to watch in 2019 and boosted their average annual copper price forecast.
The financial services firm raised its forecast for copper from US$2.94 per pound to US$2.98, reflecting growth of about 1 percent. However, the analysts maintained their stance on copper’s long-term picture.
“Our preferred base metal longer term continues to be copper where we expect a somewhat balanced market in 2019 and 2020 before entering into a marked supply/demand deficit in 2021,” they said.
With that in mind, we’ve taken a brief look at the three companies that the Raymond James analysts have on their watch list.
1. First Quantum Minerals (TSX:FM,OTC Pink:FQVLF)
Current price: C$14.88; year-to-date gain: 34.78 percent
Major miner First Quantum Minerals produces mainly copper, gold, nickel and zinc. The company’s assets are located in Zambia, Spain, Mauritania, Australia, Finland, Turkey, Panama, Argentina and Peru.
First Quantum operates six mines, namely the Kansanshi copper-gold mine, the Sentinel copper mine, the Guelb Moghrein copper-gold mine, the Las Cruces copper mine, the Pyhäsalmi copper-zinc mine and the Çayeli copper-zinc mine.
The company is also developing the Cobre Panama, Taca Taca, Haquira and Trident copper projects. In late March, the company released a technical report that lays out its plans for expanding Cobre Panama by 15 million tonnes per year; first ore was introduced to the project’s processing plant in February.
2. Teck Resources (TSX:TECK.B,NYSE:TECK)
Current price: C$31.73; year-to-date gain: 7.96 percent
Teck Resources bills itself as Canada’s largest diversified resource company, with business units focused on zinc, copper, steelmaking coal and energy. The company is a top 10 copper producer in the Americas, with four operating copper mines and a pipeline of development projects in North and South America.
Teck operates the Highland Valley copper mine in Canada, the Quebrada Blanca copper mine in Northern Chile and the Carmen de Andacollo copper mine in Central Chile. The company also holds a 22.5 percent interest in the Antamina copper-zinc mine in Peru’s Andes mountain range.
3. Ero Copper (TSX:ERO)
Current price: C$18.03; year-to-date gain: 83.79 percent
Based in Vancouver, Canada, Ero Copper has three key assets under its belt: the MCSA mining complex, the Boa Esperança copper project and the NX gold mine, all of which are located in Brazil. The company claims its primary focus is on copper production growth from the Vale do Curaçá property, part of the MCSA complex.
The company’s share price rose 10 percent earlier this month after it unveiled strong drill results from ongoing activity at the Pilar and Vermelhos mineral districts, both part of Vale do Curaçá.
The data for this article was retrieved on April 26, 2019.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.