Top copper stocks for Q4 2022

Top copper stocks for Q4 2022

The copper industry consists of companies engaged in the exploration, mining, development and production of copper, one of the most widely used metals. Copper demand is closely linked to business cycles as it is used for a wide range of applications, including construction, electronics, industrial machinery, transportation, power generation and transportation. The biggest names in the industry include Freeport-McMoRan Inc., OZ Minerals Ltd. based in Australia and Zijin Mining Group Co. Ltd. based in China.

Copper stocks, represented by the Global X Copper Miners ETF (COPX), have underperformed the broader market. COPX 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. This market performance data and all statistics in the tables below refer to September 13, 2022.

Here are the top 3 best value, fastest growing and best performing copper stocks. These are shares of companies that mine copper, rather than futures contracts that track the copper commodity.

These are the copper stocks with the lowest trailing 12-month price-to-earnings (P/E) ratios. 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 Shares
Price ($) Market ($B) 12 month P/E ratio
Lundin Mining Corp. (LUN.TO) CA$7.24 CA$5.6 6.0
Ero Copper Corp. (ERO.TO) CA$14.33 CA$1.3 6.4
Capstone Copper Corp. (CS.TO) CA$3.14 CA$2.2 6.7

Source: YCharts

  • 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 USA. over the counter (OTC) in the US under the label LUNMF. The company said a sinkhole developed near the Alcaparrosa mine at the Minera Ojos del Salado operation in Chile on July 30. As of the company’s last report on August 18, operations at the mine remained suspended.
  • Ero Copper Corp.: Ero Copper is a Canadian-based mining company engaged in the production and sale of copper, gold and silver at mining locations primarily in Brazil. The company also has shares traded on the New York Stock Exchange (NYSE) in the US under the symbol ERO.
  • Capstone Copper Corp.: Capstone Copper is a Canadian-based copper mining company. Its operations are mainly in the USA, Mexico and Chile. Capstone also has shares traded over the counter in the United States under the name 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 manufacturing practices and sustainable development. Copper Mark currently covers six of the world’s 10 largest copper producers.

These are the top copper stocks ranked by a growth model that ranks companies based on a 50/50 weighting of the most recent quarterly year-over-year percentage growth in revenue and the most recent quarterly year-over-year earnings per share (EPS) growth. Both sales and profits are critical factors in a company’s success. Therefore, ranking companies by a single growth metric makes a ranking susceptible to that quarter’s accounting anomalies (such as changes in tax laws or restructuring costs) that may make one or the other component unrepresentative of the business as a whole. Companies with quarterly EPS or revenue growth of more than 2,500% were excluded as outliers.

Fastest growing copper reserves
Price ($) Market ($B) EPS Growth (%) Revenue Growth (%)
First Quantum Minerals Ltd. (FM.TO) CA$23.49 CA $16.3 211.5 11.0
Capstone Copper Corp. (CS.TO) CA$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 for and produces copper, nickel, gold, silver, zinc and lead. First Quantum operates mines in countries such as Turkey, Spain, Finland and Zambia. It also has shares traded over the counter in the US under the index FQVLF. First Quantum announced its second quarter 2022 earnings results on July 26. The company’s net profit attributable to shareholders roughly tripled year-on-year (YOY) on the back of revenue growth. The company said that COVID-19 restrictions had been largely eased, although high inflation and a global economic slowdown weighed on performance.
  • Capstone Copper Corp.: See above for company description.
  • Turquoise Hill Resources Ltd.: Turquoise Hill Resources is a Canadian-based mining company engaged in the exploration and development of minerals and metallurgical 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 earnings results for the second quarter of 2022. Revenue for the period fell 27% year over year as revenue rose. Copper and silver revenues increased year-over-year, while gold revenue growth remained essentially flat.

These are the copper stocks that had the best returns or the smallest decline in total return over the past 12 months among the companies we looked at.

Best performing copper stocks
Price ($) Market ($B) 12 Month Total Return (%)
Turquoise Hill Resources Ltd. (TRQ) 30.96 6.2 103.7
First Quantum Minerals Ltd. (FM.TO) CA$23.49 CA $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 company description.
  • First Quantum Minerals Ltd.: See above for company description.
  • Freeport-McMoRan Inc.: Freeport-McMoRan is involved in the mining of copper, gold and molybdenum. The company has mining operations in both North and South America and Indonesia.

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