Many Canadian copper stocks are performing strongly in 2024, thanks in part to several tailwinds for the sector this year.
Copper prices saw gains during the first half of the year, and 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).
The price has since eased to US$4.37 per pound or US$10,296 per MT as of October 16, but remains elevated compared to 2023 prices.
Demand has remained strong due to energy transition sectors, but lower treatment charges from Chinese refiners during the first half of 2024 caused refiners to cut output. This bottlenecked the overall copper supply, introducing further pressure to the market.
Against that backdrop, how have TSX-listed copper companies performed? Learn about the top five best-performing copper stocks in 2024 by year-to-date gains below. Data for this article was retrieved on October 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)
Year-to-date gain: 80.16 percent
Market cap: C$970.99 million
Share price: C$3.32
Taseko Mines is a copper producer and developer that holds a portfolio of assets in British Columbia, Canada, and Arizona, US. Its primary asset is the Gibraltar copper mine, which is located in Central BC.
Gibraltar is Canada’s second largest open-pit copper mine after Teck Resources’ (TSX:TECK.A,TECK.B,NYSE:TECK) Highland Valley mine. It boasts an 85,000 metric ton per day processing capacity, and in 2023 the mine 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 mutually beneficial as both Dowa and Furukawa are divesting away from copper-mining investments.
On June 1, Taseko suspended operations at Gibraltar for 18 days due to strike action from union workers. After approximately two weeks, the company and union came to terms on a new agreement, which the union ratified on June 19.
In the company’s second quarter 2024 financial and operational performance update released on July 31, Taseko reported that Gibraltar had produced 20.2 million pounds of copper during the quarter, an 8 percent decrease from Q2 2023. The total for the first two quarters came to 49.9 million pounds, 3.2 percent less than the 53.1 million pounds through the first six months of 2023.
A crusher relocation project and general maintenance at one of the mine’s concentrators, alongside the strike, were the cause for the decreased production in H1. According to the company, it expects production in the second half of the year to be stronger now that operations are back online.
The announcement also provided an update on development progress of Taseko’s Florence project; all key permits are now in place for commercial production and construction has commenced. The company expects the first production from the site in Q4 2025, with an annual copper production of 85 million pounds.
Shares of Taseko reached a year-to-date high of C$4.12 on May 21.
2. Hudbay Minerals (TSX:HBM)
Year-to-date gain: 74.66 percent
Market cap: C$4.86 billion
Share price: C$12.68
Hudbay Minerals is a copper production and development company with producing mines in Peru and Canada. It also has projects in Peru and in the US.
According to Hudbay’s Q2 results, the Constancia copper mine and neighboring Pampacancha satellite pit in Peru produced a combined 19,217 metric tons of copper in the three months ending on June 30.
In Canada, Hudbay’s 75 percent owned Copper Mountain mine in BC produced 6,719 MT of copper, and its wholly owned Snow Lake operations in Manitoba produced 2,429 MT of copper despite forest fires causing interruptions at the Lalor mine. Both mines also produce gold and silver, and Snow Lake produces zinc as well.
In addition to its mining assets, the company is advancing its Copper World project in Arizona, US. 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 March 28 annual reserve and resource update, Copper World holds proven and probable average grades of 0.54 percent copper from 385 million metric tons.
In an August 29 release, Hudbay announced it had received an aquifer protection permit from the Arizona Department of Environmental Quality. The company said the permit marks a key milestone and brings the project one step closer to being fully permitted.
The company is also working on its Mason project in Nevada, US. Hudbay is developing Mason as a long-term future asset, and expects it to have a 27 year mine life. A resource estimate shows measured and indicated resources of 2.22 billion MT at an average grade of 0.29 percent copper, and inferred resources of 237 million MT grading 0.24 percent copper.
On May 24, the company announced the completion of an upsized bought-deal offering, generating aggregate gross proceeds of US$402.5 million. 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 21.
3. Alta Copper (TSX:ATCU)
Year-to-date gain: 72.22 percent
Market cap: C$53.89 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.
The most recent announcement from the project came on October 10 when Alta announced its drill permit application was approved by the Ministry of Energy and Mines of Peru. The permit will allow the company to drill 42,400 meters in phases of 10,000 meters to be commenced prior to Q2 2025.
The company said the drill programs will be used to cross and fill recently identified zones of mineralization extending to depth in the Canariaco Norte deposit, which were not included in the current mineral resource estimate.
It also said it had received Certificates of Non-Existence of Archaeological Remains on Surface from the Ministry of Culture of Peru.
Shares of Alta reached their year-to-date high of C$0.79 on May 21.
4. Capstone Copper (TSX:CS)
Year-to-date gain: 66.9 percent
Market cap: C$7.9 billion
Share price: C$10.62
Capstone Copper is a mining company with a portfolio of assets in the US, Mexico and Chile.
Capstone’s wholly 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-silver mine in Zecatacas, Mexico, which has 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).
Having first produced saleable copper concentrate from Mantoverde on June 25, the company achieved commercial production on September 21, with 30 consecutive days of 32,000 metric tons per day throughput.
In addition to activities at the Mantoverde mine, Capstone released an updated feasibility study for its Santo Domingo project, which is located 35 kilometers northeast of Mantoverde. The study indicated an after-tax net present value of US$1.7 billion, with an internal rate of return of 24.1 percent and a payback period of 3 years.
The figures were based on an annual copper production of 106,000 metric tons for the first seven years.
Shares of Capstone reached a year-to-date high of C$11.20 on May 17.
5. First Quantum Minerals (TSX:FM)
Year-to-date gain: 65.06 percent
Market cap: C$14.57 billion
Share price: C$17.86
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 metric tons 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 metric tons 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 the company’s second quarter results, First Quantum reported the production of 102,709 metric tons of copper, down from 84,466 MT produced in Q2 2023. The production drop was largely attributed to the closure of Cobre Panama, which contributed 90,086 metric tons during the quarter last year.
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. Due to increased power curtailments since the Q1 release, the company has had to increase the amount of power sourced from regional sources to 193 megawatts from the original 80 megawatts.
The increase has pushed the expected copper cash costs up to US$0.06 per pound from US$0.03 per pound. First Quantum says it will be able to sufficiently substitute curtailed power with imports for the duration of the emergency. The energy deficit is expected to ease with Zambia’s next rainy season, with hydro generation recovering by early 2025.
Shares of First Quantum reached a year-to-date high of C$20.00 on May 21.
FAQs for investing in copper
Is copper a good investment in 2024?
Many experts have a positive long-term outlook for the red metal based on supply concerns and its growing role in the energy transition. Copper’s price has climbed to new all time highs in 2024, bringing many stocks with it.
Investors who are interested in copper should make sure to perform their due diligence, as the volatility and unpredictability of markets and economies at the moment means that nothing is guaranteed.
What is copper used for?
Copper is used in many industries, from construction to electronics to medical equipment. In fact, in 2020, 32 percent of copper globally was used in equipment manufacturing and 28 percent in building construction.
Two other growing sectors for copper are the burgeoning electric vehicle and green energy industries. Electric vehicles require a significant amount of the red metal per vehicle.
How to invest in copper?
Investors can get exposure to copper in a variety of ways. Holding physical copper is possible, but plenty of storage would be required to hold any significant value of the metal.
For investors looking to invest in the metal without physically holding it, there are a few options. Copper stocks such as those on the TSX, TSXV and ASX are worth looking at. Additionally, there are copper exchange-traded funds and the copper options and futures markets on the London Metal Exchange.
How to invest in a copper ETF?
Copper exchange-traded funds (ETFs) can be a good way to diversify an investment portfolio, and they can be a more stable option compared to individual copper miners or explorers. There are multiple options available on the market, and they can usually be purchased in the same way one could purchase stocks through a broker or trading platform.
In May 2022, Horizons launched Canada’s first copper equities ETF, the Horizons Copper Producers Index ETF (TSX:COPP), which is focused solely on pure-play and diversified copper-mining companies.
There are two ETFs available on the US ARCA exchange as well. The Global X Copper Miners ETF (ARCA:COPX) tracks the Solactive Global Copper Miners Index, which includes copper miners, as well as copper explorers and developers. The other option is the United States Copper Index Fund (ARCA:CPER), which gives investors exposure to copper futures contracts by tracking the SummerHaven Copper Index Total Return (INDEXNYSEGIS:SCITR).
How is copper priced?
The copper price is tracked in two ways: COMEX copper and London Metal Exchange (LME) copper. The COMEX and LME are both options and futures metal exchanges, with the former being headquartered in New York and the latter in London. COMEX copper is priced by the pound, while LME copper is priced per metric ton.
How is copper processed?
Once copper is mined, the ore goes through multiple steps to reach a market-ready state. First, the ore is ground to roughly separate the rock from the copper, as copper typically only makes up 1 percent of the mined rock.
The resultant copper is then slurried with water and chemical reagents, after which air is used to float the copper to the top of the mixture. After the copper is removed from this, it is typically at 24 to 40 percent purity.
Where is copper mined?
Copper is mined throughout the world, with significant production found on every continent besides Antarctica. Chile was the top producer in 2022, putting out 5 million metric tons of the metal. Rounding out the top five are Peru with 2.6 million MT, the Democratic Republic of Congo with 2.5 million MT, China with 1.7 million MT and the United States with 1.1 million MT.
Article by Dean Belder; FAQs by Lauren Kelly.
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.