Top 5 Copper Stocks on the TSX in 2024

Year-to-date gain: 75 percent; market cap: C$941.54 million; share price: C$3.22

Taseko Mines is a copper producer and development company that holds a portfolio of assets in BC, Canada and Arizona, US. Its primary asset is the Gibraltar mine, which is located in Central BC. The mine is Canada’s second largest open-pit copper mine after Teck Resources' (TSX:TECK.A,TECK.B,NYSE:TECK) Highland Valley mine. Gibraltar boasts an 85,000 MT per day processing capacity and in 2023 produced 123 million pounds of copper.

On March 25, Taseko fully acquired Gibraltar after entering into an agreement with Dowa Metals and Mining (TSE:5714) and Furukawa (TSE:5715) to purchase the remaining 12.5 percent interest in the property. The company said the agreement was made as both Dowa and Furukawa are divesting away from copper-mining investments.

On June 1, Taseko announced that operations at Gibraltar had been suspended due to strike action from workers. The strike lasted approximately two weeks, with the company and union coming to terms on a new agreement.

The company said on June 19 that the union had ratified the agreement and that operations had restarted at concentrator 2. Concentrator 1 was to remain offline while a crusher relocation project and general maintenance were completed.

Shares of Taseko reached a year-to-date high of C$4.05 on May 27.

Year-to-date gain: 72.22 percent; market cap: C$52.2 million; share price: C$0.62

Alta Copper is a copper exploration company that is working to advance its flagship Cañariaco project in Northern Peru. The project includes the Cañariaco Norte and Cañariaco Sur deposits and the Quebrada Verde prospect.

On May 15, the company released figures from an optimized preliminary economic assessment. In the report, the company indicates a base case pre-tax net present value of US$4.1 billion with an internal rate of return of 32.4 percent based on copper prices of US$4 per pound, along with all-in sustaining costs of US$1.96 per pound.

On the production side, Alta reported that the projected mine life is 27 years, with average annual metal production in the first 10 years of 347 million pounds of copper, 70,000 ounces of gold and 1.5 million ounces of silver.

Shares of Alta reached their year-to-date high of C$0.79 on May 20.

Year-to-date gain: 67.61 percent; market cap: C$4.94 billion; share price: C$12.18

Hudbay Minerals is a copper production and development company with producing mines in Peru and Canada, as well as projects in Peru and the US states of Arizona and Nevada.

According to Hudbay’s Q1 results, the Constancia mine and neighboring Pampacancha satellite pit in Peru produced a combined 24,576 MT of copper in the first three months of 2024. Copper Mountain in BC produced 7,024 MT of copper and Snow Lake in Manitoba produced an additional 3,149 MT of copper.

In addition to its mining assets, the company is advancing its Copper World project in Arizona. In its report for the first quarter, the company indicates that it is continuing to work on getting final state permits for the site and expects to receive them sometime in 2024. When complete, Copper World is expected to have a 20 year life.

According to a mineral resource estimate included in a March 28 annual reserve and resource update, Copper World holds proven and probable average grades of 0.54 percent copper from 385 million MT.

The company is also working on its Mason project in Nevada. It is being developed as a long-term future asset and Hudbay expects it to have a 27 year life. A resource estimate shows measured and indicated average grading of 0.29 percent copper from 2.22 billion MT, with inferred grading of 0.24 percent copper from 237 million MT.

On May 24, the company announced the completion of an upsized bought-deal offering, generating aggregate gross proceeds of US$402.5 million for the sale of 42.37 million common shares at US$9.50 per share. The company said it intends to use the funds for near-term growth initiatives and to accelerate development at Copper Mountain.

Shares of Hudbay reached a year-to-date high of C$14.15 on May 20.

Year-to-date gain: 64.23 percent; market cap: C$15.32 billion; share price: C$17.77

First Quantum Minerals is a copper mining and development company with a global portfolio of assets.

Its primary asset is the Cobre Panama mine, located west of Panama City, Panama. The mine boasts 3 billion MT of proven and probable reserves and represents 1 percent of the world’s copper supply. The mine was ordered to close down in November 2023 after the Panamanian Supreme Court invalidated an extension to the mine's license.

In a December 2023 release, the company said it was working on developing a closure plan for the mine; however, it also noted that it was pursuing all appropriate legal avenues to protect its investment and rights.

In its Q1 results, released on April 24, First Quantum said it was continuing to work on a preservation and safe management plan for Cobre Panama, and was also working to deliver the 121,000 MT of concentrate that remains on site.

Due to the ongoing situation in Panama, the company noted that it had undergone a refinancing program to improve its balance sheet and liquidity. This program included working out a prepayment agreement with Jiangxi Copper (SHA:600362,HKEX:0358) for US$500 million, the completion of a US$1.6 billion senior secured second lien at 9.38 percent due in 2029 and the issuance of 139.93 million common shares to raise US$1.15 billion.

In addition to the updates on its mine in Panama, First Quantum reported the production of 100,605 MT of copper through Q1, down 59,595 MT compared to Q4 2023. The production drop was largely attributed to the closure of Cobre Panama.

The company is also operating several mines in Zambia, including its Kansanshi copper-gold mine, Sentinel copper mine and Enterprise nickel mine. First Quantum noted that production may be impacted in 2024 due to severe drought conditions in Zambia caused by El Nino, which has reduced water levels in the Kafue and Zambezi rivers. The government declared a national emergency in March, and power generation in the country has been impacted.

First Quantum has been working to mitigate these challenges and has entered into offtake agreements with third-party traders for power sourced from the Southern African Power Pool for a total of 80 megawatts. The agreements are expected to cost US$25 million. Shares of First Quantum reached a year-to-date high of C$20 on May 20.

Year-to-date gain: 53.3 percent; market cap: C$7.81 billion; share price: C$9.74

Capstone Copper is a mining company with a portfolio of assets in the US, Mexico and Chile.

Capstone's 100 percent owned Pinto Valley copper mine in Arizona, US, is fully permitted until 2039 and is expected to produce 58,000 to 64,000 MT of copper in 2024. Capstone acquired Pinto Valley from BHP (ASX:BHP,NYSE:BHP,LSE:BHP) in 2013, and the mine has produced more than 4 billion pounds of copper since it began operating in 1972.

Capstone is the sole owner of the Cozamin copper and silver mine in Zecatacas, Mexico, which boasts a 1,000 MT per day throughput and is projected to generate 22,000 to 24,000 MT of copper in 2024. It also holds the Mantos Blancos copper mine in Antofagasta, Chile, which underwent an expansion in 2021 to extend its mine life significantly.

In addition, the company owns a 70 percent stake in the Mantoverde mine in the Atacama region of Chile, with the remaining 30 percent owned by Mitsubishi Materials (OTC Pink:MIMTF,TSE:5711). The mine is currently in the process of ramping up to commercial production, and Capstone announced on June 25 that it produced its first saleable copper concentrate. Capstone expects to achieve nameplate operating rates during Q3 2024.

Shares of Capstone reached a year-to-date high of C$11.20 on May 16.