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Copper Stocks (FCX, RIO, SCC, HBM, TRQ, COPX) - YouTube
Channel: Stephanie Talks Money
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Hi everyone, it's Stephanie.
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Today we're going to be talking about copper!
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Copper is at all-time highs right now.
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It has not been this high since 2010 and 2011.
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And some are saying it's the next hot commodity
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and its rise will continue.
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So why is copper such a big deal right now?
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Well, first of all, there's聽
an increase in copper demand.
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Copper is mostly used for electric聽
delivery, like wires and cables.
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It's also had a boom because of electric vehicles.
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There is more copper in an electric vehicle
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than there is in a gasoline vehicle.
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With the drive for clean energy,
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and particularly electric vehicles,
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there is going to be a need聽
for copper far into the future.
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And the other thing that's causing聽
the price of copper to go up
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is that it's becoming in short supply.
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There are existing mines currently
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but it takes years and years and years
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to get permitting and build mines.
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This means that even though聽
if a company discovers a mine,
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it's going to take many, many years聽
before it's actually producing copper.
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Because there's a lag in new mine production.
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that means that there's less聽
product hitting the market
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and that means it's in short supply.
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An increase in demand and a decrease in supply
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is the perfect formula for聽
an increase in copper prices.
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Considering the growth that copper has had lately,
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and the growth it's going to聽
continue to have in the future,
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you might be thinking about investing in it.
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If you want to invest in copper,
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here are some stocks you can invest in.
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The first is Freeport-McMoRan.
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Freeport-McMoRan is a mining company聽
that mines copper, gold, and molybdenum.
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It is an industry leader in the copper industry.
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It currently has operations in North America,
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South America, and Indonesia.
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This company is focused on the clean聽
energy future that copper has in store.
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It has just started expanding one聽
of its larger copper mines, Bagdad.
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And that mine is estimated to聽
have an 80-year reserve life.
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And, on average, Freeport-McMoRan's聽
reserve life is around 30 years.
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And this company has reported several productions
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and startups and ramp ups on all of its mines,
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indicating that production聽
will increase in the future.
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And its copper sales are expected to聽
increase over the next several years.
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This company has a dividend of 7.5 cents a share,
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which is a 0.73% dividend yield,
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and this is paid quarterly.
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Another copper miner is Rio Tinto.
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Rio Tinto mines many materials such as聽
aluminum, copper, minerals, and ore.
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It has operations and projects in the聽
US, Chile, Mongolia, and Australia.
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It has two major operations:聽
Kennecott and Oyu Tolgoi.
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And these two mines actually have the Copper Mark
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which means the copper is responsibly produced.
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Rio Tinto has a lot of exploration聽
and startups occurring at the moment,
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so it's bound to continue to grow in the future.
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Rio Tinto also has a dividend聽
and it's paid out twice a year,
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so every six months.
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Over the last several years, the dividend聽
payments have varied tremendously
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from 50 cents to 4 dollars.
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The dividend is always paid but聽
the amount is not consistent.
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Another copper mining stock is聽
Southern Copper Corporation.
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Their primary mine focus is copper,
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but they also mine molybdenum, silver, and zinc.
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Southern Copper has operations in Mexico and Peru.
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And out of all the copper companies,
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Southern Copper has the longest mine聽
life and the largest copper reserves.
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Southern Copper has many plans
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to increase its capital investments into its mines
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and increase production over the next 10 years.
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And one thing Southern Copper prides themselves on
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is their strong dividend.
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They currently have a聽
dividend of 70 cents a share,
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which is a little over 4% dividend yield
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and they pay that out every quarter.
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Next up is Hudbay Minerals.
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This is a mining company focused聽
on copper, gold, zinc, and silver.
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It has copper projects in the US
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and other projects in Canada and Peru.
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And right now in the US,聽
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it only has exploratory聽
and developmental projects.
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Given that it's in the exploratory聽
and developmental phase
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of many of its copper resources
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it definitely projects growth聽
over the next several years.
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Hudbay Minerals is looking to expand聽
its footprint in the copper industry.
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It could be a good investment on聽
the speculation that it can grow
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as its mines begin operation.
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Hudbay Minerals does have a dividend
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but it's small!
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It's one cent a share every six months.
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And another stock for you聽
is Turquoise Hill Resources.
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This mining company is exclusively focused
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on the mining of the Oyu Tolgoi mine in Mongolia.
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They have 66% interest in the mine
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and the Mongolian government聽
has the remaining interest.
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Rio Tinto actually signed on聽
as a strategic partner in 2010
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and has been managing the production聽
and development of the mine since.
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Oyu Tolgoi has an expected mine life of 100 years.
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That's longer than any mine.
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And for all my Canadian friends out there,
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you can invest in Copper Mountain.
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Copper Mountain has 75% interest聽
in the Copper Mountain mine,
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which is in British Columbia.
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They've also started a聽
development project in Australia.
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This could be a great stock to get聽
in on a company that's very small now
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but is continuing to grow.
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And for anyone looking for聽
an international investment,
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you could invest in Jiangxi Copper.
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They are the largest copper producer in China.
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They have many operations for copper
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including mining, smelting, and milling.
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And they also produce copper聽
products from the copper they mine
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including things like wires and cathodes.
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And if you're looking for a broader聽
exposure into the copper industry
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you can always invest in an ETF.
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Tthe Global X Copper Miners ETF is perfect聽
for anyone looking for a copper ETF.
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COPX currently has 33 holdings
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and if you look at its聽
performance over the last 5 years
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you'll see it's done pretty well.
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This ETF also pays dividends twice a year.
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This isn't all the copper聽
stocks that are out there.
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There's many more
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but this is just a short selection聽
that you can start researching.
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So if you're interested in investing in copper,
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take a look at one of these stocks.
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With an increase in copper聽
demand and a decrease in supply
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there's bound to be growth聽
for companies and investors.
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If you enjoyed this video please give it a like
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and subscribe to my channel.
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