The 3 Best Copper Mining Stocks to Buy Now: July Edition

  • Investing in the copper industry is a good way to bet on the long-term expansion of several industries.
  • Freeport-McMoRan (FCX): Geographically diverse and widely touted as a major producer.
  • BHP (BHP): Its history dates back to 1851 as it also owns other revenue streams beyond copper.
  • Southern Copper (SCCO): Deep copper reserves make it a strong long-term value storage play.
Copper Mining Stocks - The 3 Best Copper Mining Stocks to Buy Now: July Edition

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When analysts discuss mining and resource extraction, copper tends to receive less attention due to its less obvious applications and importance to several industries. But with the way several technologies are heading, including robotics and manufacturing, copper could become just as central to the global economy as lithium or steel. Just like these commodities saw associated company stocks rise in times of technological advancement, so too could copper mining stocks.

Moreover, the process of extracting copper is highly complex, and due to the purity required once extracted, its ore yield tends to be quite low. Then pair this with the relatively lengthy time it takes to develop a copper deposit for extraction, and it begins to seem like a solid long-term investment.

For investors interested in copper mining stocks, looking for the companies with the most experience and broadest geographical access can prove successful. Thus, here are three companies to invest in if you’re bullish on the future of copper.

Freeport-McMoRan (FCX)

Freeport-McMoRan Stock's Long List of Catalysts Boosts Its Buy Status
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The definition of long-term and geographically diversified, Freeport-McMoRan (NYSE:FCX) is one of the best copper mining stocks to invest in today. The company has gone to great lengths to ensure the long-term supply of its operations amid generous sustainability goals. That’s because FCX, unlike many other mining companies, understands the importance of remaining relevant over the long run in industries reliant on finite resources like copper. 

Though copper is a more common metal, FCX’s expertise in extracting it allows the company to maintain healthier margins and produce it in the volumes necessary to weather any drops in price. With the demand for copper now rising due to its applications in clean energy generation and electric motors, FCX’s vast portfolio of mines stands perfectly positioned for profit.

Up 22% year-to-date and offering a 0.59% dividend yield that is likely to increase over time, FCX stock is one of the better plays in the copper mining industry right now.

BHP (BHP)

Smartphone with BHP Group logo in front of BHP website. BHP stock.
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Not as geographically diversified as competitors but still incredibly well established, BHP (NYSE:BHP) operates the largest copper mine in the world in Chile’s Atacama Desert. Moreover, BHP’s revenue stream goes beyond the sale of copper ore, as it also extracts gold and silver from its Chilean mine.

The company also operates mines in Australia, where it derives its history from, tracing back to the early days of Australia’s colonization. Operating since 1851 with over 80,000 employees worldwide, BHP also more closely represents a legacy approach to copper mining stocks, with extensive experience to back its long-term trajectory.

As such, the company represents a stable, blue-chip-style play in the world of copper extraction. The stock has traded relatively flat over the last five years, with only 14% growth to its name, but its price-to-earnings ratio of 20.03 and 5.21% dividend yield make it a stable pick.

Southern Copper (SCCO)

Southern Copper Corporation logo on a phone screen in front of the logo on a computer screen. SCCO stock.
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Centralized in Peru as a pure-play in copper mining operations, Southern Copper (NYSE:SCCO) is a relatively new mining company that claims to control the largest copper reserves in the world. The company originally began as a U.S.-owned venture based in Peru called the Southern Peru Copper Corporation in 1952. For much of its history, SPCC operated independently until merging with Minera Mexico in 2005.

Since then, SCCO has worked to break the barrier of one million tons of copper produced and succeeded in reaching that milestone in 2020. As far as copper producers go, SCCO will certainly be one of the most stable members of the industry. Tack on its 2.72% dividend yield atop a 65% increase in share value over the last 12 months and SCCO seems like an even better investment.

Ultimately, the company’s deep reserves and ability to stabilize copper prices with its output will lend itself to a series of long-term returns for investors.

On the date of publication, Viktor Zarev did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Viktor Zarev is a scientist, researcher, and writer specializing in explaining the complex world of technology stocks through dedication to accuracy and understanding.


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