Yahoo Finance Copper Stocks Are Surging: Here Are 2 Good Ones to Buy
Written by Amy Legate-Wolfe at The Motley Fool Canada
While attention might mainly be on gold prices, investors might be more surprised to hear that copper prices have hit a 14-month high! The spot price of copper now sits at about US$9,400 per ton. So let’s get into why, and how investors can get in on the action.
What happened
The continued rise in the price of copper comes as investors flock to the metal as supply chain demand rises. And, of course, there is hope that the world is currently undergoing a recovery, which would lead to more investment and use of the material.
Prices rose further as comments came from the Federal Reserve noting that interest rates remained tempered. Furthermore, there continue to be disruptions at some major mines, leaving mounting supply risk for those purchasing the material.
With that in mind, any company seeing strong growth and production from its copper arms would be a strong buy. If it doesn’t have disruptions and operates in relatively stable countries on a geopolitical level, then this production could likely continue. And these are the two I would consider first.
Lundin Mining
Lundin Mining (TSX:LUN) has been on a tear this year thanks to its production of copper. Lunden stock has about 63% of its overall production dedicated to copper, with more mines also under way to produce even more. This comes after delivering a record year in terms of copper production to investors, but stating it’s looking to produce even more this next year.
As for where it produces copper, Lundin currently operates out of Portugal, Brazil, the United States, and Sweden, as well as Canada. These are all stable countries that shouldn’t see any risk to copper production over the next year.
What’s more, the company has been expanding. Lundin stock reported that it acquired Chile’s Casseroles copper mine during its recent report. Plus, it’s expanding the Neves-Corvo project, which contributed to record zinc production for the stock as well. So with even more growth coming for Lundin stock, as shares are up 56% in the last year, it’s definitely one to buy as copper prices rise.
Teck stock
Another company that investors will want to consider with the rise in copper prices is Teck Resources (TSX:TECK.B). While Teck stock does invest in copper production, it’s not the only thing it does. Nor does it take up an enormous part of its overall portfolio. So this could be good for investors looking to get more diversification while still seeing a rise from copper prices.
Teck operates copper operations in the Highland Valley Copper mine in British Columbia, as well as in Chile through several mines in the country. It has also been expanding these operations over time. Even as it splits off its steel-making coal business to provide even more growth for shareholders.
Meanwhile, Tech stock’s performance has been improving significantly, with shares up 9% in the last year, and 39% since hitting 52-week lows. So now could be an opportune time while the company climbs past 52-week highs.
The post Copper Stocks Are Surging: Here Are 2 Good Ones to Buy appeared first on The Motley Fool Canada.
Should you invest $1,000 in Lundin Mining Corporation right now?
Before you buy stock in Lundin Mining Corporation, consider this:
The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lundin Mining Corporation wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.
Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $15,578.55!*
Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 32 percentage points since 2013*.
See the 10 stocks * Returns as of 3/20/24
More reading
Can You Guess the 10 Most Popular Canadian Stocks? (If You Own Them, You Might Be Losing Out.)
How to Build a Bulletproof Monthly Passive-Income Portfolio in 2024 With Just $25,000
Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
2024
