Top Copper Stocks for Q4 2022

Top Copper Stocks for Q4 2022

The copper industry is made up of companies involved in the exploration, extraction, development and production of copper, one of the most widely used metals. Copper demand is closely related to economic cycles as it is used for a wide range of applications, including construction, electronics, industrial machinery, transportation, power generation and transmission. The biggest names in the sector include Freeport-McMoRan Inc., OZ Minerals Ltd. based in Australia, and Zijin Mining Group Co. Ltd.

Copper stocks, represented by the Global X Copper Miners ETF (COPX), underperformed the broader market. COPX has delivered a total return of -15.5% over the past 12 months, below the -10.7% return for the S&P 500 over the same period. These market performance figures and all statistics in the tables below are from September 13, 2022.

Here are the top 3 copper stocks with the best value, fastest growth, and best performance. These are stocks of companies that mine copper, rather than futures that track the copper commodity.

These are the copper stocks with the lowest 12-month price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio indicates that you are paying less for each dollar of profit generated.

Best Value Copper Stocks
Price ($) Market Cap ($B) Trailing 12-Month P/E Ratio
Lundin Mining Corp (LUN.TO) $7.24 CA$5.6 6.0
Ero Copper Corp. (ERO.TO) $14.33 CA$1.3 6.4
Company Information Company Name Capstone Copper Corp. (CS.TO) $3.14 CA$2.2 6.7

Source: YCharts

  • Corp.: Lundin Mining Corp. Lundin Mining is a Canadian-based company engaged in the mining and exploration of copper, zinc, gold, and nickel and other metals as well as the development of mineral properties in Chile, Brazil, Portugal, Sweden, and the United States. . over the counter (OTC) in the US under the ticker LUNMF. The company said a sinkhole developed near its Alcaparrosa mine at the Minera Ojos del Salado operation in Chile on July 30. As of the company’s latest report on August 18, the mine’s operations were still suspended.
  • Body Ero Copper: Ero Copper is a Canadian-based mining company engaged in the production and sale of copper, gold and silver in mining locations primarily in Brazil. The company also has shares that trade on the New York Stock Exchange (NYSE) in the US under the ticker ERO.
  • Corp.: Capstone Copper Corp. Capstone Copper is a copper mining company based in Canada. Its operations are primarily in the United States, Mexico, and Chile. Capstone also has shares trading over the counter in the US under the ticker CSCCF. On August 25, Capstone announced that its Mantos Blancos and Mantoverde operations in Chile had committed to the Copper Mark, a United Nations framework that promotes responsible production practices and sustainable development. The Copper Mark currently covers six of the world’s 10 largest copper producing companies.

These are the top copper stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly YOY revenue growth and quarterly earnings per share (EPS) growth. Both sales and earnings are critical factors in a company’s success. Therefore if ranking companies according to a growth metric only, ranking can be subject to accounting anomalies of that quarter (such as changes in tax law or restructuring costs) which could make one figure or another unrepresentative of the business in general . Companies with quarterly EPS or revenue growth in excess of 2,500% were excluded as outliers.

Fastest Growing Copper Stocks
Price ($) Market Cap ($B) EPS Growth (%) Revenue Growth (%)
First Quantum Minerals Ltd. (FM.TO) $23.49 $16.3 211.5 11.0
Company Information Company Name Capstone Copper Corp. (CS.TO) $3.14 CA$2.2 -4.8 76.9
Turquoise Hill Resources Ltd. (TRQ) 30.96 6.2 -19.6 21.9

Source: YCharts

  • First Quantum Minerals Ltd.: First Quantum Minerals is a Canadian-based mining company that explores and produces copper, nickel, gold, silver, zinc and acid. First Quantum operates mines in countries including Turkey, Spain, Finland and Zambia. It also has shares that trade over the counter in the US under the ticker FQVLF. First Quantum reported Q2 2022 earnings results on July 26. Net earnings attributable to company shareholders increased approximately three times year-on-year (YOY) on rising revenue. The company said that COVID-19 restrictions have largely eased, although performance was negatively impacted by high inflation and a global economic slowdown.
  • Corp.: Capstone Copper Corp. See above for a description of the company.
  • Turquoise Hill Resources Ltd.: Turquoise Hill Resources is a Canadian-based mining company engaged in the exploration and development of mineral and metal properties in Asia and Australia. Its main property is the Oyu Tolgoi copper and gold mine in southern Mongolia. On August 4, Turquoise Hill reported Q2 2022 earnings results. Revenues fell 27% for the YOY period as revenues increased. Copper and silver revenues rose YOY, while gold revenue growth remained essentially flat.

These are the copper stocks with the best returns or the least declines in total return over the last 12 months of the companies we looked at.

Copper Stocks with the Best Performance
Price ($) Market Cap ($B) Total Outcome 12 Month Follow-up (%)
Turquoise Hill Resources Ltd. (TRQ) 30.96 6.2 103.7
First Quantum Minerals Ltd. (FM.TO) $23.49 $16.3 -1.8
Freeport-McMoRan Inc. (FCX) 31.05 44.4 -10.7
Russell 1000 N/A N/A -10.7
Global X Copper Miners ETF (COPX) N/A N/A -15.5

Source: YCharts

  • Turquoise Hill Resources Ltd.: See above for a description of the company.
  • First Quantum Minerals Ltd.: See above for a description of the company.
  • Freeport-McMoRan Inc.: Freeport-McMoRan is engaged in copper, gold and molybdenum mining. The company has mining operations in North and South America as well as Indonesia.

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