BNN:CC - 4 Stocks To Watch With Rising Copper Prices
(NewsDirect)
Aseismic shift has unfolded in the global copper market following asignificant announcement from Chinese smelters. On March 13, theseinfluential entities, responsible for processing half of theworld's mined copper, jointly declared a production cut. Thisdecision reverberated through the market, sparking a surge in tradingactivities.
As aresult, the benchmark three-month copper price on the London MetalExchange (LME) soared to $8,799 per metric ton, its highest point inseven months. Simultaneously, copper for delivery in May experienced asubstantial uptick on the Comex market in New York, reaching $4.06 perpound ($8,932 per tonne), marking a significant 3.3% surge from theprevious day’s closing.
Moreover, amidst projections of copper's crucial role inthe transition to clean energy and net-zero emissions by 2050, itsdemand is poised for significant growth. Copper is indispensable inrenewable energy infrastructure, electric vehicles, gridmodernization, and energy storage systems, making it a key enabler ofa sustainable energy future.
Given this backdrop, investing in copper miningstocks presents an opportune moment. Let's explore four coppermining stocks worthy of your watchlist:
Benjamin Hill Mining Corp. (OTC: BNNHF)(CSE: BNN) is a Canadian-listed junior exploration company with aprimary focus on advancing the Alotta project, situated in the YukonTerritory, Canada. This project, positioned approximately 50kilometers south of the Casino porphyry deposit, represents asignificant opportunity within the Dawson Range porphyry/epithermalbelt.
The Alottaproperty spans approximately 1550 hectares, comprising 74 mineralclaims. Notably, the property boasts over 4 by 1 kilometers of in-situgold soil geochemistry, signaling substantial mineralizationpotential. Its strategic location in the unglaciated portion of theDawson Range enhances the prospect's attractiveness forexploration and development.
Geologically, the Alotta project sharessimilarities with the renowned Casino Deposit, including comparableMesozoic intrusive phases and intermediate composition withporphyritic textures. The property's distinguishing features, suchas reduced magnetic intensity due to hydrothermal fluid activity,imply the presence of porphyry-style mineralization processes.Coincident copper/gold in-soil anomalies, as well as magneticdepletion areas within the intrusive complex, add to the project'spotential. These features align with established models of porphyrydeposits, bolstering the case for significant mineralization withinthe Alotta property.
Additionally, radiometric surveys have revealed large potassichighs within areas of magnetic depletion, indicative of alkalicporphyry systems known for their copper and gold deposits. Thisgeological evidence underscores the prospectivity of the Alottaproject and its potential to host economically viable mineralresources.
Beyondits Yukon exploration activities, BNNHF holds a strategic 20%interest in Aion Mining Corp., a company focused on the development ofthe La Estrella coal project in Santander, Colombia. With eightidentified seams of metallurgical and thermal coal, this investmentdiversifies Benjamin Hill’s portfolio and positions it for exposureto the global energy market.
Recently, on March 26, 2024, BNNHF announcedthe successful closing of an oversubscribed $5 million privateplacement financing. This recent development underscores thecompany's ongoing efforts to secure funding for its explorationand development projects. The influx of funds from the privateplacement financing enhances the company's financial position,enabling it to advance exploration activities and potentially uncovervaluable mineral resources.
This financing success further indicates investorconfidence in the company's prospects, which could attract furtherinterest from potential shareholders. It serves as an importantcatalyst for investors to consider the growth potential of BenjaminHill Mining Corp. (OTC: NNHF) (CSE: BNN) and its projects, suchas the Alotta project in the Yukon Territory and the La Estrella coalproject in Colombia
Freeport-McMoRan Inc. (NYSE: FCX) stands as a majorforce in the global copper industry, boasting a robust portfolio ofassets and a commitment to excellence. With its headquarters inPhoenix, Arizona, FCX operates a diverse range of large-scale assetsacross North America, South America, and Indonesia, positioning itselfas one of the world's largest publicly traded copperproducers.
At theheart of FCX's operations lies its strategic focus on copper,gold, and molybdenum mining. The company's flagship assets includethe Grasberg minerals district in Indonesia, renowned for its vastcopper and gold deposits, and significant operations in North Americaand South America, such as the Morenci minerals district in Arizonaand the Cerro Verde operation in Peru.
FCX has continued to demonstrate strongfinancial performance, reporting impressive earnings and revenuefigures. Most recently, in January, FCX reported fourth-quarterearnings of $388 million, surpassing Wall Street expectations. Thisfinancial success is attributed to growing demand for copper andhigher prices for gold, which have bolstered FCX's fortunes.
Looking ahead, FCX remains optimistic about its prospects, expecting to sell 4.1billion pounds of copper, 2 million ounces of gold, and 85 millionpounds of molybdenum in 2024.
Moreover, FCX is actively pursuing growthopportunities, with several expansion projects underway across theUnited States. For example, the company is expanding its Lone StarMine in Safford, Arizona, aiming to increase copper production andextend the facility's operational life. Additionally, FCX isseeking permits for a pit addition at its copper mine in Tyrone, NewMexico, further demonstrating its commitment to long-termsustainability and growth.
In line with its dedication to shareholders, FCXrecently announced cash dividends of $0.15 per share, reflecting itsperformance-based payout framework. This dividend declarationunderscores FCX's commitment to delivering value to itsshareholders while maintaining financial flexibility and prudentcapital allocation.
Ero Copper Corp. (NYSE: ERO) (TSX: ERO) is anothercompany that stands out as a compelling opportunity in the coppersegment due to its high-margin, high-growth, and low carbon-intensityoperations. With headquarters in Vancouver, B.C., and operationsprimarily based in Brazil, Ero Copper has established itself as asignificant player in the copper mining industry.
The company'sprimary asset is its 99.6% interest in Mineracao Caraiba S.A. (MCSA),which owns and operates the Caraiba Operations in the Curaca Valley,Bahia State, Brazil. This complex includes underground and open-pitmines, including the Pilar and Vermelhos underground mines and theSurubim open-pit mine. Additionally, Ero Copper holds the TucumaProject in Para, Brazil, an IOCG-type copper project with promisingprospects.
EroCopper's recent construction update for the Tucuma Projecthighlights significant progress, with physical completion now over85%. The project is expected to commence production of copperconcentrate in the second half of 2024. The company's focus onsafety is evident, with over three million hours of work completedwithout a lost-time incident.
Financially, ERO has reported robustearnings and production results. The company's fourth-quartercopper production exceeded expectations, contributing to recordfull-year production. Moreover, its gold production has also beenimpressive, with record numbers achieved during the reportingperiod.
Analystshave also shown confidence in Ero Copper's performance, withincreased earnings estimates for the first quarter of 2024. Despitesome fluctuations in earnings compared to analyst expectations, thecompany's overall trajectory remains positive, owing to strongoperational performance and strategic growth initiatives.
ERO offers an appealinginvestment opportunity in the copper sector, supported by operationalexcellence, strategic assets, and prudent financial management. Withpromising projects underway and a track record of success, ERO makes afine addition to any savvy investor's copper watchlist.
First QuantumMinerals Ltd. (OTC: FQVLF) (TSE: FM) is a global copper companyknown for producing copper in various forms, including concentrate,cathode, and anode, along with inventories of nickel, gold, andcobalt. With operations spread across several countries and aworkforce of approximately 20,000 people worldwide, First Quantum is asignificant player in the copper mining industry.
In February, FirstQuantum reported its results for the fourth quarter of 2023, revealinga net loss attributable to shareholders of $1,447 million ($2.09 lossper share). Despite facing challenges, the company's CEO expressedconfidence in First Quantum's resilience and the determination ofits teams to overcome obstacles. Notably, the company secured a $500million copper prepay arrangement with Jiangxi Copper, enhancing itsliquidity position amidst supply challenges in the coppersector.
Thefourth-quarter results were impacted by disruptions at the CobrePanamá mine, leading to a 28% decrease in total copper productioncompared to the previous quarter. However, the company remainscommitted to its growth initiatives, including the S3 expansion at theKansanshi mine in Zambia, which is expected to significantly boostcopper production and free cash flows by 2026.
Analysts have taken noteof First Quantum's recent developments, with RBC Capital Marketsupgrading the company's rating from Sector Perform to Outperform.They see potential in the S3 expansion and believe that resolvingissues at Cobre Panamá could unlock further value for the company.Stifel Nicolaus has set a price target of C$14.00 for First QuantumMinerals, indicating a potential upside of 5.11% from its previousclose.
Despite the challenges faced,First Quantum Minerals remains a key player in the global coppermarket, with strategic initiatives in place to drive future growth andvalue creation for shareholders.
CapitalGainsReport (CGR) is notoperated by a licensed broker, a dealer, or a registered investmentadviser. This content is for informational purposes only and is notintended to be investment advice. The Private Securities LitigationReform Act of 1995 provides investors a safe harbor in regard toforward-looking statements. Any statements that express or involvediscussions with respect to predictions, expectations, beliefs, plans,projections, objectives, goals, assumptions, or future events orperformance are not statements of historical fact may be forwardlooking statements. Forward looking statements are based onexpectations, estimates, and projections at the time the statementsare made that involve a number of risks and uncertainties which couldcause actual results or events to differ materially from thosepresently anticipated. Forward looking statements in this action maybe identified through use of words such as projects, foresee, expects,will, anticipates, estimates, believes, understands, or that bystatements indicating certain actions & quote; may, could, ormight occur. Understand there is no guarantee past performance will beindicative of future results. Investing in micro-cap and growthsecurities is highly speculative and carries an extremely high degreeof risk. It is possible that an investors investment may be lost orimpaired due to the speculative nature of the companies profiled.CapitalGainsReport (CGR) has been retained by Cambridge Consulting toassist in the production and distribution of content related to BNNHF.'CGR' is responsible for the production and distribution ofthis content. It should be expressly understood that under nocircumstances does any information published herein represent arecommendation to buy or sell a security. This content is forinformational purposes only, you should not construe any suchinformation or other material as legal, tax, investment, financial, orother advice. Nothing contained in this article constitutes asolicitation, recommendation, endorsement, or offer byCapitalGainsReport or any third party service provider to buy or sellany securities or other financial instruments. All content in thisarticle is information of a general nature and does not address thecircumstances of any particular individual or entity. Nothing in thisarticle constitutes professional and/or financial advice, nor does anyinformation in the article constitute a comprehensive or completestatement of the matters discussed or the law relating thereto. CGR isnot a fiduciary by virtue of any persons use of or access to thiscontent.
ContactDetails
CapitalGainsReport
MarkMcKelvie
+1 585-301-7700
CompanyWebsite
Copyright (c) 2024 TheNewswire - All rights reserved.