Commodity Bull Market Alert: Top 7 Copper Stocks and ETFs for 2024

As the Federal Reserve embarks on a rate-cutting cycle and supply-side tensions persist, the market is once again abuzz with the proclamation of a “commodities bull market.”

Spot gold has surged to new heights, reaching $2,238 per ounce, while crude oil is gradually rebounding, with US oil surging above $80 for the first time in nearly four months.Furthermore, the “Dr. Copper,” a renowned economic barometer, has recently exhibited robust performance, with London copper futures surpassing $9000.

Buffet’s Astute Moves

Over the past two decades, a historical cycle indicates synchronous upswings in the Japanese stock market and commodities, during which the stock prices of Japan’s five major trading houses far outpaced the Nikkei index. Interestingly, Buffet increased his holdings in these Japanese giants last year and continued to acquire oil stocks, signaling his substantial bets on inflation and bullish prospects for commodities.

Copper as an Economic Barometer

Copper is often regarded as a key “bellwether” for the macroeconomic landscape, as its prices are influenced by macroeconomic conditions and its production and consumption are closely linked to overall economic performance. Hence, it has earned the moniker “Dr. Copper.”

If one is optimistic about global economic growth, bullish sentiments towards electric vehicles and green energy, there is every reason to consider a positive outlook on copper. Fortunately, the US stock market offers numerous mining and metal companies, as well as a variety of exchange-traded funds (ETFs).

Leading Copper Stocks and ETFs for 2024

1. Metals Acquisition Ltd. (NYSE: MTAL) : Market Cap: $905 million; A company specializing in the acquisition and operation of metal and mining assets, with a focus on global decarbonization. Its core asset is the CSA copper mine in Australia.
2. Taseko Mines Ltd (NYSE: TGB) : Market Cap: $626.6 million; The company holds interests in the Gibraltar, Florence Copper, Aley Niobium, Yellowhead, New Prosperity, and Harmony projects. In March 2024, it announced the acquisition of the remaining 12.5% stake in the Gibraltar mine.
3. Freeport-McMoRan Inc (NYSE: FCX) : Market Cap: $67.3 billion; Primarily engaged in gold, silver, and other metal mining, with copper as the main driver of its performance. The company’s assets span across several locations, including the US and Indonesia. It currently offers an annual dividend of 60 cents per share, with a yield of 1.3%.
4. Ivanhoe Electric Inc. (NYSE: IE) : Market Cap: $1.2 billion; A newly established company in 2020, aiming to safeguard the critical metal supply chain for electrification in the US, focusing on copper, cobalt, nickel, and platinum. It possesses exclusive “Typhoon” geophysical survey technology.
5. Compañía de Minas Buenaventura S.A.A. (NYSE: BVN) : Market Cap: $4.2 billion; The company’s assets span across Peru, the US, Asia, and Europe, with copper being a significant source of income and profit growth. In addition to metal mining, the company is involved in energy production, transmission, and insurance brokerage.
6. Invesco DB Base Metals Fund (DBB) : Market Cap: $190 million; This ETF invests in copper commodity futures (35.27%), aluminum (33%), and zinc (31.54%) derivatives, suitable for investors with a high risk tolerance. Additionally, the fund holds US Treasury bonds, investment-grade bonds, and high-quality bond funds as collateral.
7. First Quantum Minerals (OTC Pink: FQVLF): Market Cap: $9 billion; Primarily engaged in the exploration, development, and production of copper resources, with assets covering Zambia, Panama, Finland, Turkey, Spain, and Australia. The 2024 revenue is projected to exceed $4 billion.

These notable US copper stocks and ETFs present compelling opportunities for investors in 2024.

Copper Funds US Stocks Warren Buffett