Raymond James analysts recently gave their top copper stocks to watch this year. We run through the companies here.
Copper prices have performed with volatility in the past three months as uncertainty surrounding US-China trade talks continues to hit the space.
Concerns about demand from China, the world’s top consumer, has also hurt the base metal in recent weeks. Prices have been trending around the US$5,700 per tonne mark, significantly down from the yearly high they hit in March at US$6,570.
In their latest report, Raymond James analysts shared their top copper stocks to watch in 2019 and reduced their average annual copper price forecast.
The financial services firm brought its forecast down from US$2.81 per pound to US$2.72, marking an approximate 3 percent drop. The analysts explain in the report that, while forecast reductions took place across the base metal commodities, copper experienced the biggest change. Even so, in spite of the drop, they remain confident in copper’s long-term outlook.
“Our preferred base metal longer term continues to be copper, where we expect a somewhat balanced market in 2019 and 2020 before entering a period of tighter supply-demand starting in 2021.”
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 share price: C$10.33; year-to-date movement: +9.75 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. It also holds a 100 percent interest in the Ravensthorpe nickel mine, which has been on care and maintenance since October 2017.
The company is also developing the Cobre Panama, Taca Taca, Haquira and Trident copper projects.
2. Teck Resources (TSX:TECK.B,NYSE:TECK)
Current share price: C$21.40; year-to-date movement: -23.4 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.
3. Ero Copper (TSX:ERO)
Current share price: C$19.30; year-to-date movement: +93.22 percent
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 data for this article was retrieved on September 26, 2019.
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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.