Copper prices have jumped sharply in the past few weeks as the crisis in Ukraine has escalated. Like all metals, copper has rise because of expectations of supply challenges. And in a recent statement, Rio Tinto’s CEO said that he expects a supply deficit in the coming three years. Here are some of the top copper stocks to keep an eye on.
Glencore
Glencore (LON: GLEN) is a giant Swiss-headquartered company that deals with some of the most important commodities. The company is a leading player in items like copper, nickel, coal, and cobalt. It is also a leading oil trader that sells millions of barrels every day.
Therefore, this diversification makes Glencore to be a good stock to buy. For example, nickel prices have gone parabolic in the past few weeks, pushing London and Shanghai to halt its trading.
Coal has risen because of under-investment by other companies. Crude oil prices have also jumped to over $100 and are eying their all-time high.
At the same time, copper price has jumped because of the surging demand and low production. Therefore, there is a likelihood that the Glencore share price will keep rising in the long term. Besides, Glencore is the second-biggest copper producer in the world after Codelco.
BHP
BHP (LON: BHP) is a giant mining company whose shares trade in the United States, London, and Sydney. It is the largest mining company in the world by market cap.
BHP produces some of the most important commodities in the industry. It is a leading producer of petroleum, copper, iron ore, nickel, coal, and potash. All these products are in high demand. For example, sanctions on Russia will lead to more demand for potash, a material that is important in fertilizzer manufacturing.
BHP business has been growing in the past two years and there is a likelihood that the rising copper prices will lead to more profits and dividends.
Freeport-Mcmoran
Freeport-Mcmoran (NYSE: FCX) is a leading copper mining company that has operations in South and North America and Indonesia. The company differs from the other two in that copper is its only business, which explains why its stock price has surged to an all-time high.
The company’s business has been in a rapid growth. For example, its revenue rose from over $20 billion in 2020 to over $21 billion in 2021. In this period, the company’s net income soared from about $599 million to over $4.3 billion.
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