Five Copper Stocks Electrifying the World
The world runs on electricity, and electricity runs on copper. From cars to aeroplanes, solar panels to wind turbines, copper is one of the most essential metals of today’s economy. Bloomberg estimates that copper demand will likely increase by up to 50% by 2040, with clean energy, electric transportation and power generating infrastructure driving much of the increasing demand. For the world to meet such massive needs, copper producers must become a focus of tomorrow’s economy.
Below we look at five industry leaders of copper production featured in the Global X Copper Miners ETF (WIRE):
Boliden (Sweden: BOL)
- Market Cap: 9.27 Billion (USD)
- PE: 8.03
- Index Weight: 4.29%
Headquartered in Stockholm, Sweden, Boliden is a multinational metal mining and smelting company focussed on the production of zinc and copper. Refined copper cathodes are one of the company’s core products, with each cathode reaching a copper purity of more than 99.99%. These high purity copper cathodes are the primary material input to produce copper wires and cables. Boliden currently produces around 350 kilo-tonnes of copper cathodes annually, making it the third largest producer in Europe by weight.
Sandfire Resources (Australia: SFR)
- Market Cap: 1.31 Billion (USD)
- PE: 9.95
- Index Weight: 1.83%
Sandfire Resources is a Western Australian based copper, zinc and lead mining and exploration firm with operations in Australia, Spain, Botswana, and the United States. The company currently produces up to 90 kilo-tonnes of copper annually (set to expand alongside the expansion of its Botswanian “Motheo” copper mine) and is the second largest copper mining company in Australia by market capitalisation.
Altius Minerals (Canada: ALS)
- Market Cap: 751.04 Million (USD)
- PE: 21.02
- Index Weight: 0.86%
Altius Minerals Corporation is a royalties and streaming company with a focus on renewable energy and battery metal production. Royalty companies play a special role in supporting the mining industry. Developing mines and infrastructure to produce metals can be extremely costly, and smaller mining companies often require external financing to develop a new mine. Royalty companies serve as financiers that assist in the funding of these ventures, and, in return, receive royalties on the minerals and goods produced. Altius Minerals currently holds royalty interests in approximately 13 operating mines located in the Americas. The projects currently generate $80 million in streaming revenues annually, of which, copper and copper-adjacent royalties account for roughly 45%.
China Nonferrous (Hong Kong: 1258)
- Market Cap: 1.62 Billion (USD)
- PE: 5.17
- Index Weight: 0.73%
China Nonferrous Mining Corporation (CNMC) is an investment holding company engaged in the entire copper value-chain, ranging from exploration and mining, to processing and sales. The company’s operations are based in Zambia, one of the largest natural ore reserves in the world. As one of the world’s leading vertically integrated copper producers, CNMC is capable of processing 120 kilo-tonnes of high purity copper cathodes, alongside 400 kilo-tonnes of blister copper and copper anodes (materials used for further refining) annually.
Copper Mountain (Canada: CMMC)
- Market Cap: 253.08 Million (USD)
- PE: N/A
- Index Weight: 0.35%
Copper Mountain Mining Corp (CMMC) is a Canadian minerals producer focused on the exploration and mining of copper ores. The company primarily operates in British Columbia, Canada, where its flagship “Copper Mountain” mine produces over 45 kilo-tonnes of copper annually. This production amount is expected to balloon to over 100 kilo-tonnes annually as CMMC has committed to heavy investments in both the expansion of “Copper Mountain”, and development of the large-scale “Eva Copper Project” in Queensland, Australia.
WIRE: For those wishing to invest in the energy transition through copper miner exposure, Global X Copper Miners ETF (WIRE) provides access to a global basket of copper miners which stand to benefit from being a key part of the value chain facilitating growth in major areas of innovation such as technology, infrastructure and clean energy – including solar and wind power.
Click the fund name above to view the fund’s current holdings. Holdings are subject to change. Current and future holdings are subject to risk.