This guide categorizes copper stocks into three categories: junior exploration, junior mining, and senior (major) mining. These “copper stocks” vary on a spectrum of prices and risks.
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There are many mining and exploration companies on various stock exchanges in Canada and the US. The recent increase in copper prices have instigated talks of reviving old grade copper mines that are now being viewed as potentially profitable. A diminishing supply means a surge in profit. However, supply does not always meet demand, and it is predicted that we will see a copper supply and demand gap by 2030 unless new and significant copper discoveries are made. The requirement from EVs alone could see copper demand increase by 900% by 2030. Electric vehicles, on average, require up to five times more copper than traditional combustion engines. A major factor for net-zero emissions will be the shift towards electric vehicles. Copper plays a vital role on the road towards renewable energy as it is an efficient conductor for electricity. One of those reasons is the goal to reach net-zero emissions by 2050. There are multiple reasons why copper stocks have seen a surge in demand. The risk varies based on the type of copper stock. The owner of the copper stock is entitled to a portion of the corporation assets and profits depending on the percentage of the stock they own. What are copper stocks?Ĭompanies in the commodities sector that mine or explore for copper sell shares (stocks) of their company that represent ownership of a fraction of the corporation.
#COPPER STOCKS HOW TO#
Our focus will be to explain the different types of copper stocks, and guide how to invest in them. The indirect, and the easiest, way of investing can be in copper mining stocks and copper exploration stocks. This is measured as a safe bet, a type that bears low risk and yields low reward. One way is to invest directly in physical copper or futures. There are numerous avenues to explore when considering investing in copper. It is not only used in electric vehicles, but also in wind turbines, solar panels, hydro, and energy storage.
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Copper’s versatility has made the red metal a staple in the push for carbon neutrality. Automotive giant, Tesla, recently penned a deal with Glencore for the supply of cobalt to avoid a potential supply squeeze.Ĭarbon neutrality and EV’s are casting a wide net of attention on battery metals, however we believe one metal is being overlooked – copper. The battery metals that are receiving the most attention are lithium and cobalt. As more automakers declare an end to combustion engines, battery metals have seen a spike in interest from investors. The shift towards electric vehicles is gaining momentum. The versatile metal has been a staple in the global market due to its industrial worth. Since then analysts have predicted that copper could emerge in a supercycle, while Goldman Sachs went as far as calling copper “the new oil”. Copper has created a buzz among investors since the red metal had its bull run in late 2020.