Copper Outlook 2024

Table of Contents

Copper Price Update: Q1 2024 in Review

Copper Price Update: Q2 2024 in Review

Robert Friedland: No Rational Price for Copper as "Essentially Infinite" Demand Meets Short Supply

Top 5 Copper Stocks on the TSX in 2024

Top 5 Junior Copper Stocks on the TSXV in 2024

Copper Price Update: Q1 2024 in Review

Copper prices on the London Metal Exchange (LME) saw upward momentum in the first quarter of the year on the back of tightening supply and increasing demand from the energy transition.

After bottoming out at US$7,800 per metric ton (MT) in the fall of 2023, copper prices bounced back to start 2024 in higher territory, but elevated supply kept the red metal trading in the US$8,000 to US$8,500 range until mid-March.

Since then, copper has seen strong gains, reaching a quarterly high of US$8,973 on March 18. With increasing market volatility since the start of April, prices continued trending up to reach US$9,365 on April 10.

How did copper prices perform in Q1?

At the start of 2024, analysts expected copper prices to be rangebound. A surplus was anticipated, even with lowered supply due to the shuttering of a major mine and guidance cuts elsewhere. Deficits weren’t expected to start forming until 2025 as supply came under more pressure due to increasing demand from the energy transition.

At the time, independent metals and mining consultant Karen Norton told the Investing News Network (INN), “With the market now looking more finely balanced, prices are likely to prove more susceptible to broader swings in either direction in the advent of significant news that affects the market.”

Copper price, Q1 2024.

Chart via the London Metal Exchange.

Copper's price uptick in March came as the market felt the loss of First Quantum Minerals' (TSX:FM,OTC Pink:FQVLF) Cobre Panama mine, as well as guidance cuts from Anglo American (LSE:AAL,OTCQX:AAUKF) and steady declines at Chile’s Chuquicamata mine. Together they caused concentrate supply to become increasingly tight.

In mid-March, top Chinese smelters announced plans to work together to cut production. Limited supply had forced them to lower their treatment and refining charges (TC/RCs), but this stressed their profitability.

In an email to INN at the beginning of April, Exploration Insights Editor Joe Mazumdar said, “The concentrate market balance is accurately reflected in the fall of TC/RCs. To ensure the profitability of the domestic smelters, the Chinese manufacturers have decided to cut production, bring maintenance work forward and/or delay further expansions.”

According to Mazumdar, the cuts to smelter capacity will begin to put pressure on the availability of refined stockpiles and push copper closer to a deficit position sooner than expected.

This supply bottleneck caused significant gains for the metal’s price through the last half of March and into April.

While this is largely good news for copper producers as high prices and low TC/RCs improve margins, Mazumdar thinks the price will need to stay elevated to have any real impact on investment into the industry.

“Companies may need a longer period of higher prices to incentivize them to build projects given the capital expenditure blowouts witnessed by the construction of projects such as Quebrada Blanca 2 by Teck Resources (TSX:TECK.A,TECK.B,NYSE:TECK) in Chile,” he said.

First Quantum not giving up on Cobre Panama

The event that has had the biggest impact on copper supply recently is the closure of the Cobre Panama mine in Q4 2023. The mine’s annual output of 331,000 MT of copper accounted for 1 percent of global production — a significant number for an industry set to face increasing demand and a lack of incoming new supply.

Cobre Panama became a contentious issue during the year as First Quantum and the government of Panama renegotiated a company-friendly contract that dated back to 1997. Panama ultimately approved a new deal in October 2023 that guaranteed the country would receive at least US$375 million annually from First Quantum, and the company received a 20 year extension to continue operations at the mine.

However, public sentiment deteriorated after the approval, leading to protests. The deal was ultimately overturned by the Supreme Court and Panamanian President Laurentino Cortizo ordered the mine to close.

First Quantum announced in December 2023 that it had launched international arbitration proceedings to challenge the court’s ruling, but so far no date has been set for the commencement of talks.

Panama will be holding elections in May as Cortizo completes his second and final term, meaning the country will soon have a new administration. Mazumdar told INN that First Quantum intends to negotiate with the incoming administration in the hopes of striking a deal that is favorable to both parties.

“The current president will not stand in the next election in May 2024; therefore First Quantum plans on working with whomever is elected to try and restart the mine and avoid the arbitration. Cobre Panama represents about 5 percent of the GDP of Panama and employs 30,000 to 40,000 people directly and indirectly,” he said.

Governments recognize copper's critical status

In 2022, the US government established the Minerals Security Partnership (MSP), which is now made up of 14 countries, including the US, Canada, Australia, Estonia, Japan, South Korea and Sweden, as well as the EU.

Among its goals is advancing critical minerals projects that meet ESG standards.

In February, the MSP announced the signing of a memorandum of understanding between Gecamines, the Democratic Republic of Congo’s state-run mining company, and the Japan Organization for Metals and Energy Security. The deal will create a framework for the two to coordinate and cooperate in mineral exploration, development and production in the Lobito Corridor, where Gecamines currently oversees the production of 1.5 million MT of copper cathode.

This past March, the MSP held a forum on the sidelines of the Prospectors & Developers Association of Canada convention to discuss matters around mineral security with a focus on shoring up the supply of commodities that are critical to the energy transition, including copper, and to advance the development of domestic supply chains.

At the meeting, the group confirmed it was working on 23 projects covering a breadth of minerals critical to the energy transition, including copper. Sixteen of the projects involve upstream mining and mineral extraction, while seven center around midstream processing and another seven focus on recycling and recovering. As for location, six are in the Americas, five are in Europe, 13 are in Africa and three are in the Asia-Pacific region.

This work comes amid increasing geopolitical tensions between the US and China over key issues, including the latter’s increasing buildout of mining assets in Africa. Russia’s war with Ukraine has also caused a tricky landscape.

For its part, the US is encouraging manufacturers to use minerals from nations with which it has free-trade agreements, like those in the MSP, as part of the Inflation Reduction Act (IRA), which was introduced in 2022.

Ultimately, the goal of the MSP, the IRA and other regional programs is to help accelerate critical minerals projects by working with government and industry to help secure funding, provide diplomatic support and diversify supply chains.

Investor takeaway

Copper's supply stresses look likely to continue in 2024 and beyond due to a lack of new supply in the pipeline, and slow permitting times for assets that are underway. At the same time, the red metal is expected to see higher demand from renewable electricity generation, electric vehicle production and increasing infrastructure needs.

However, now that more governments are labeling copper a critical mineral, there's hope that bottlenecks in supply may lessen and new projects may be able to make progress. Overall, a landscape is emerging that could benefit investors who are looking for long-term plays in an industry facing immense supply-side constraints in the coming years.

Still, given the challenges in discovery, permitting and approval, investors should do their due diligence, researching all aspects of a company, including its biggest projects and the risks associated with them.

Don’t forget to follow us @INN_Resource for real-time news updates!

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

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

Additional information on Copper stock investing — FREE

Copper Price Update: Q2 2024 in Review

The second quarter of 2024 saw copper prices surge on the London Metal Exchange (LME) on the back of supply bottlenecks and elevated demand, particularly from the energy sector.

Copper prices began the period at US$8,728 per metric ton (MT) on April 3, but supply and demand dynamics provided critical support for the base metal — by the end of the month, copper had climbed to US$9,973.50.

With an improving macroeconomic environment in the US increasing the likelihood of an interest rate cut and continued cuts at Chinese refiners in May, copper encountered a perfect storm that helped it set a record high on the LME of US$11,104.50 on May 20. It hit an even higher price on the COMEX of US$5.20 per pound, or US$11,464, the same day.

Copper prices pulled back to end Q2 at US$9,418. Although the metal had retreated to US$9,051.50 as of July 22, it remains at elevated levels, with conditions likely to continue providing support for the near future.

Copper price chart, January 1 to June 30, 2024.

Chart via the London Metal Exchange.

Copper supply struggles lead to tight market in Q2

Both a loss of existing supply and a lack of incoming supply are supporting copper prices this year.

The closure of First Quantum Minerals' (TSX:FM,OTC Pink:FQVLF) Cobre Panama mine in Panama has weighed on supply; it accounted for approximately 1 percent of global copper supply when it was operational.

The mine is currently in care and maintenance, with negotiations halted. José Raúl Mulino, Panama's new president, has said his government won’t engage in new negotiations unless First Quantum drops its arbitration claims.

In an interview with the Investing News Network, Joe Mazumdar, editor of Exploration Insights, spoke briefly about the situation in Panama. “From what I understand, most of the people that ran for presidential election were all against the project,” he commented. “I don’t think there’s anybody there that is for the project winning. So then it’s all about arbitration, which will drag on for a while as it's a big number, US$20 billion.”

He believes the situation will impact investment decisions elsewhere as well. “It will also make people and companies rethink spending significant capital in jurisdictions if they don’t have government support,” he said.

Elsewhere in the copper sector, the news has been mixed at best. Despite predicting lower grades and reduced production at its Quellaveco mine, Anglo American (LSE:AAL,OTCQX:AAUKF) saw an 11 percent year-on-year increase during the first quarter as the mine achieved its highest throughput rate.

Even so, the major miner has set its copper production guidance at 730,000 to 790,000 MT for 2024, substantially lower than the 826,000 MT of copper output it recorded in 2023.

“We’ve also had a secular negative trend in production with the largest copper producer, which is Codelco. They’ve got problems with large amounts of debt, so their ability to fund their expansions is problematic,” Mazumdar said.

Codelco, Chile’s state-run mining company, saw production slump to 25 year lows in 2023. This year, the firm is struggling to meet its 2024 production targets as a new mandate from the Chilean government has prioritized lithium production, and the Chuquicamata and El Teniente mines continue to be plagued by long-term debt issues.

Lower production levels have stressed treatment charges since the start of the year, forcing Chinese refiners to begin their own production cuts earlier in the year. However, these cuts have done little to raise margins, and producers have begun to plan for additional cuts in Q3 as lower rates begin to affect annual deals that benefit refiners.

Mazumdar said that the majority of mines produce copper concentrate, for which 50 percent of the smelting capacity is in China. The end price is dictated by treatment and refining charges, which he said have gone low and nearly turned negative due to the lack of concentrate available after Cobre Panama was suspended.

The Exploration Insights expert went on to say that the other price to look at when analyzing copper markets is copper cathode premiums, which reflect cathode supply and demand.

“So there’s the cathode price. That’s stated in the LME, and Shanghai and the COMEX in the states. But if the market is tight in any of those regions locally, you will see a cathode premium … over the price of the copper,” he said. “People are willing to pay more to incentivize people that have copper inventory to release it into the market.”

According to Mazumdar, if both treatment and refining charges are low and the cathode premiums are high, that is indicative of a tight near-term market.

Electrification helping to drive copper demand

Higher prices also reflect a recovery from the manufacturing sector, as well as higher demand from industries tied to the global energy transition. Electricity generation in general is a large driver of copper demand, and renewable energy options such as solar and wind consume even larger amounts of copper.

According to the US Energy Information Administration, US electricity generation increased 5 percent during the first six months of 2024 compared to H1 2023; during H2, electricity generation is expected to be up 2 percent.

The report also indicates that solar generation is currently the fastest-growing source of electricity generation. Solar generation was up significantly in the US year-on-year in the first half of 2024, and the Energy Information Administration expects it to grow 42 percent year-on-year during the second quarter.

This comes alongside increases in installed solar and wind, particularly in China, which saw record-setting installations of wind and solar projects as installed solar costs dropped below prices for any other energy source.

Renewable usage is also increasing with corporations. S&P Global Commodity Insights notes that corporate renewable capacity increased by 15.8 gigawatts worth of contracts signed in the first quarter, representing a 36 percent increase from the same time in 2023. Of those, solar led the way and made up roughly half of the deals signed.

The report indicates that the mineral extraction sector saw strong renewable growth, including 2.5 gigawatts of deals signed by Rio Tinto (ASX:RIO,LSE:RIO,NYSE:RIO) as it works to improve its carbon footprint at its Australian operations.

Significant copper demand has also been coming from electric vehicle (EV) producers. Although reports about EV sales slowdowns have been rife since 2023, many US carmakers have experienced strong growth in 2024.

During the first half of the year, US EV sales saw an 11.3 percent increase over 2023, with 330,463 units sold. Globally, sales were even stronger, increasing 20 percent to 7 million units sold.

China held its position as the strongest EV market, accounting for 4.1 million of those sales.

EVs can use as much as 60 kilograms of copper versus the 25 kilograms in traditional internal combustion engine cars, and 29 kilograms in hybrids. Electrical demands on the grid will require even greater amounts of copper.

A May report from the International Energy Forum, a body established to facilitate dialogue between energy-producing and energy-consuming countries, suggests that current goals for 100 percent EV production by 2035 are unrealistic. Instead, it recommended the goal be moved to the manufacturing of hybrids instead.

The forum also notes that the average copper production output of the top 10 mines is 472,000 MT per year, and in order to maintain current increases to demand, 1.1 new mines will need to be added every year until 2050. When EVs and their demands on the electric grid are factored in, that rises to 1.7 new mines per year, or 54 new mines by 2050.

What can copper investors expect in 2024?

In the short term, there is still copper supply in the market, but the situation could quickly change.

The Chinese real estate market, which has traditionally been a major demand generator for copper, hasn’t recovered yet, and a shift there could send an already tight market over the edge. Chinese officials have made attempts to revive the flagging sector, but the initiatives have had little effect and are threatening to drag the economy down further.

However, softer copper demand from the Chinese housing sector has largely been offset by increased demand from EVs, as well as the country's attempt to move away from fossil fuel to meet its energy needs.

As for incoming supply, Mazumdar noted that funding for copper projects is tentative due to rising costs and the fact that copper prices haven't been conducive to building new projects. Additionally, projects that have seen development won’t come online in time to fill gaps in production as they've been held back.

He suggested that copper producers are looking to avoid the kind of cost overruns experienced with Teck Resources' (TSX:TECK.A,TECK.B,NYSE:TECK) Quebrada Blanca 2 expansion, which has ballooned from US$4.7 billion to US$8.8 billion. However, Mazumdar said it is encouraging that Freeport-McMoRan (NYSE:FCX) announced a decision to expand its El Abra copper mine in Chile for US$7.5 billion.

Additionally, while M&A is taking place in the industry, it has largely been focused on producing assets.

“They don’t mind paying a premium for a producing mine because it's permitted for the tailings and other footprints, and the capital has been spent, so there is little capital escalation risk,” Mazumdar said.

He also suggested that permitting issues are a major factor for timelines, causing investors to rethink where their capital flows to. These long permitting times are resulting in companies turning to jurisdictions with more government support for critical metals, as with Barrick Gold's (TSX:ABX,NYSE:GOLD) projects in Pakistan.

“Why spend a premium on a project that might take 10+ years to permit when you can spend as much or less on a project that you can get funded in an area that might take half the time to put into production,” he said.

With limited supply and little to be done to ease permitting times, copper demand is likely to keep the market bullish. This demand may be good news for investors looking to find opportunities in the resource sector, as copper is critical in the medium and long term to energy transition goals around the world.

Don’t forget to follow us @INN_Resource for real-time news updates!

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

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

Additional information on Copper stock investing — FREE

Robert Friedland: No Rational Price for Copper as "Essentially Infinite" Demand Meets Short Supply

A copper crunch is coming as demand builds and the hunt for viable deposits comes up short.

That’s according to Robert Friedland, a well-known mining industry financier whose current roles include board leadership positions at Ivanhoe Mines (TSX:IVN,OTCQX:IVPAF) and Ivanhoe Electric (TSX:IE,NYSEAMERICAN:IE).

"We see a crisis coming in physical markets, and we see a requirement for much, much higher copper prices," he said in a recorded interview played at the Rule Symposium, held from July 7 to 11 in Boca Raton, Florida.

Copper demand “essentially infinite”

Speaking first about copper demand, Friedland described it as “essentially infinite,” noting that growing the global economy at 3 percent a year for the next two decades would require more copper than the world has ever mined.

In his view, the red metal is the most important element on the periodic table for humanity. It has well-known industrial uses, but Friedland also highlighted its ability to conduct electricity and heat — those characteristics make it essential in new applications like electric cars, artificial intelligence (AI) data centers and modern warfare.

“Military demand for this metal is going to go to infinity in the next few years,” he said, telling the conference audience that demand from this sector will put an “infinite value” on copper.

On a more basic level, Friedland pointed to the billions of people around the world that want to improve their quality of life with an electric fan or an air conditioner. Air conditioners alone require “astronomic amounts of copper,” he explained, but the red metal is also needed to generate and transmit the electricity they need to operate.

“There is no rational price for something you absolutely must have,” he said.

Ingenuity needed to boost copper supply

On the topic of supply, Friedland said the US is “ludicrously behind” other countries, especially China, when it comes to copper and other raw materials. “We're facing a generational crisis, and we really need to educate our children on the necessity of raw materials,” he told listeners at the Rule Symposium.

To illustrate his point, Friedland said performing a Google search uses the same amount of power that it takes to run a 100 watt light bulb for 10 seconds; an AI query uses enough power to run that same bulb for 2 to 3 minutes.

He also highlighted the need to transition away from copper produced using "dirty energy" like coal. In his view, green copper produced by companies like Ivanhoe Mines will command a premium in the years to come. The company's Kamoa-Kakula copper complex in the Democratic Republic of Congo produced 100,812 metric tons of copper in concentrate in Q2, and is expected to reach steady state production in the third quarter.

At the same time, Friedland thinks American ingenuity can provide supply solutions.

He mentioned I-Pulse, a private company where he is co-founder, chairman and CEO. Its partners include Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO), BHP (ASX:RIO,NYSE:RIO,LSE:RIO), Newmont (TSX:NGT,NYSE:NEM) and Teck Resources (TSX:TECK.A,TSX:TECK.B,NYSE:TECK), and Friedland said most of its efforts are directed at developing and commercializing technology that will make it much easier to find mines and mine them with much less energy.

Friedland also commented on Ivanhoe Electric's Typhoon technology. Put simply, it allows the company to look into the Earth and see electrically conductive metals like gold, copper, silver and nickel. In May, Ivanhoe Energy announced an alliance with BHP to use Typhoon to explore areas of interest in Arizona, New Mexico and Utah.

“I think we may have hope for the future,” he said.

Intelligent portfolios need copper

Investors looking to get exposure to copper can buy copper stocks, but Friedland said those who have space to store it could also consider physical copper — the key is to figure out a form of exposure.

“I don't think any intelligent portfolio can be constructed without copper exposure,” he said. He sees copper as a long-term play that investors can buy and hold for their grandchildren.

Looking at timing, Friedland said that for the last few years a small community following mining stocks has traded copper equities between themselves. Now, however, he believes generalists are on the cusp of becoming interested, and he advised listeners to make sure they are early and not a day late.

“There is no rational price for something you absolutely must have,” Friedland said.

Don't forget to follow us @INN_Resource for real-time updates!

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

Additional information on Copper stock investing — FREE

Top 5 Copper Stocks on the TSX in 2024

Copper prices saw some gains during Q1, but supply concerns and rising demand caused the metal to surge to a record COMEX high on May 20, reaching US$5.20 per pound, or US$11,464 per metric ton (MT).

Strong demand from the energy transition has been expected to impact copper supply for some time, but lower treatment charges from Chinese refiners during the first quarter introduced added pressure to the market. These low charges caused refiners to cut output, ultimately bottlenecking supply of refined copper to end users.

Against that backdrop, how have TSX-listed copper companies performed? Learn about the top five best-performing copper stocks in 2024 below. Data for this article was retrieved on July 16, 2024, using TradingView's stock screener, and only companies with market capitalizations greater than C$50 million are included.

1. Taseko Mines (TSX:TKO)

Press ReleasesCompany Profile

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.

2. Alta Copper (TSX:ATCU)

Company Profile

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.

3. Hudbay Minerals (TSX:HBM)

Press ReleasesCompany Profile

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.

4. First Quantum Minerals (TSX:FM)

Press ReleasesCompany Profile

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.

5. Capstone Copper (TSX:CS)

Press ReleasesCompany Profile

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.

Article by Dean Belder; FAQs by Lauren Kelly.

Don’t forget to follow us @INN_Resource for real-time news updates!

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

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

Additional information on Copper stock investing — FREE

5 Best-performing Junior Copper Stocks on the TSXV in 2024

Many Canadian junior copper stocks are up significantly in 2024 thanks to a strong copper price.

The second quarter of the year saw momentum carry over from March. Easing inflation and speculation about a manufacturing rebound fueled broad gains in commodities markets, helping to push COMEX copper prices to a record high of US$5.20 per pound, or US$11,464 per metric ton (MT), on May 20.

Prices for the important base metal have also found support on the back of demand growth from the energy sector as wind and solar projects see greater uptake, particularly in China and India.

And even though there has been a slowdown in the pace of electric vehicle growth, automakers have begun increasing their production of hybrids, which also require more copper than vehicles with internal combustion engines.

How have these dynamics affected small-cap copper explorers on the TSXV? Below are the five best-performing junior copper stocks since the start of 2024. Data for this article was gathered on April 24, using TradingView's stock screener, and all companies had market caps of over C$10 million at that time.

1. Sandfire Resources America (TSXV:SFR)

Company Profile

Year-to-date gain: 283.33 percent; market cap: C$353.06 million; share price: C$0.345

Sandfire Resources America is a copper development company focused on its Black Butte copper project located east of Helena, Montana, in the US. In 2021, a state district court revoked the company's mine operating permit for Black Butte, halting construction activities for the underground operation.

Sandfire describes the project as one of the highest-grade undeveloped copper deposits in the world; a 2020 resource estimate for the project's Johnny Lee deposit outlines measured and indicated resources of 10.9 million MT grading 2.9 percent copper for a total of 311,000 MT of contained copper.

Shares of Sandfire soared following a February 26 decision by the Montana Supreme Court to reinstate the company's mine operating permit. The win was a crucial step for Sandfire to continue construction of the mine.

Sandfire is working to improve Black Butte's economics as it works toward a final investment decision. The most recent news from the project came on April 30, when the company released an exploration update highlighting an intercept of 7.4 percent copper over 9.54 meters, including an intersection of 10.7 percent copper over 6.26 meters.

Shares of Sandfire Resources America reached a year-to-date high of C$0.395 on May 13.

2. Koryx Copper (TSXV:KRY)

Company Profile

Year-to-date gain: 268.89 percent; market cap: C$38.47 million; share price: C$0.83

Formerly Deep-South Resources, the company changed its name to Koryx Copper in November 2023. The company is focused on the advancement of copper exploration projects in Namibia and Zambia.

Its flagship asset is the Haib copper project located in Southern Namibia near the border with South Africa. An amended preliminary economic assessment for the asset that was filed on January 8 indicates that Haib has an annual ore-processing capacity of 20 million MT at an 85 percent recovery rate for copper and copper sulfate. That equates to yearly production of 38,337 MT of copper and an additional 51,081 MT of copper sulfate.

Since the start of 2024, Koryx has published several rounds of assay results from exploration at Haib, with the most recent coming on May 15. In the announcement, the company highlights grades of 0.51 percent copper over 137.6 meters, including an intersection of 0.68 percent copper over 72 meters.

President and CEO Pierre Léveillé said the results indicate the deposit's average grade may exceed the number reported in its existing resource estimate. Assay results for the program's remaining eight drill holes have yet to be released.

Shares of Koryx reached a year-to-date high of C$1.13 on June 10.

3. T2 Metals (TSXV:TWO)

Company Profile

Year-to-date gain: 230.43 percent; market cap: C$10.98 million; share price: C$0.38

T2 Metals is a copper exploration company that has spent 2024 focusing on advancing its Sherridon copper, gold and zinc project near Flin Flon, Manitoba, Canada. T2 holds an option agreement with Halo Resources to earn a 90 percent interest in the property, which consists of 28 mining claims and one mineral lease over 4,968 hectares. The site was home to the Sherridon/Sherritt Gordon mine and hosts multiple volcanogenic massive sulfide-style ore deposits.

Currently Sherridon holds several inferred resources with near-surface targets having been identified with limited drilling activity. T2 has been working to advance exploration activities in early 2024, with the latest update coming on March 1, when it reported assays of 1.18 percent copper or 7.4 percent copper equivalent over 23.5 meters, including an intersection of 2.48 percent copper or 25 percent copper equivalent over 8.67 meters.

Shares of T2 surged toward the end of the second quarter when the company said on June 7 that it had received a C$300,000 development grant from Manitoba’s Mineral Development Fund to advance exploration at Sherridon. The company said planning and permitting were underway for both follow-up drilling and testing additional targets on the site.

T2's share price reached a year-to-date high of C$0.41 on July 7.

4. Freeport Resources (TSXV:FRI)

Press Releases

Company Profile

Year-to-date gain: 200 percent; market cap: C$18.45 million; share price: C$0.075

Freeport Resources is focused on the advancement of its Yandera copper, gold and molybdenum project located in Madan, Papua New Guinea. Yandera covers an area of 245.5 square kilometers and has been explored since the 1960s. Freeport acquired the project in August 2021, when it bought out Carpo Resources and its subsidiary Era Resources.

A 2017 prefeasibility study commissioned by Era projects a net present value of US$1.04 billion with an internal rate of return of 23.5 percent and a payback period of five years and eight months. It also shows measured and indicated resources of 2.81 million MT of contained copper equivalent and a projected mine life of 20 years.

This past February, Freeport announced that it had been granted a two year extension for its exploration license from the government of Papua New Guinea.

The most recent news from the company came on July 2, when it announced that it had closed an oversubscribed private placement for gross proceeds of C$5.2 million. Freeport said the funds will be used to complete an internal optimization review of the Yandera copper project and to advance a definitive feasibility study.

Shares of Freeport reached a year-to-date high of C$0.09 on July 3.

5. American Eagle Gold (TSXV:AE)

Press Releases

Company Profile

Year-to-date gain: 179.25 percent; market cap: C$75.59 million; share price: C$0.74

American Eagle Gold is a copper and precious metals explorer advancing its NAK property in Central BC, Canada.

Hosted within the Babine copper-gold district, the NAK property has seen historical exploration dating back to the 1960s. American Eagle completed its acquisition of the site in December 2021.

On January 8, the company announced results from the final hole of its 2023 exploration work, returning the highest grading seen in the program. It reported a large 302 meter intersection containing 0.53 grams per MT (g/t) gold, 0.4 percent copper, 1.27 g/t silver and 431.4 parts per million molybdenum.

On May 27, the company commenced Phase 3 drilling at NAK, saying the 15,000 meter program would focus on testing areas surrounding existing mineralization and connecting zones drilled in 2022 and 2023.

In an update from the project on July 2, American Eagle said that it had discovered a copper-bearing outcrop in a previously untested zone in the southeastern region of the project area.

Shares of American Eagle reached a year-to-date peak of C$0.81 on May 9.

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

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