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Copper Prices Near Record Highs: Five Mining Stocks to Watch

Copper Prices Near Record Highs: Five Mining Stocks to Watch
Published on: Mar 25, 2025
Author: Sunlight Xiang

As copper prices climb above $5 per pound, edging closer to the record high of $5.199 reached in May 2024, investors are increasingly eyeing opportunities in the copper mining sector. According to the latest data, May copper futures settled at $5.183 per pound on Tuesday, marking a near 30% year-to-date increase.

Market analysts identify the key drivers behind this rally as U.S. tariff policies, China’s economic stimulus measures, and a global imbalance in copper supply and demand.

Suggested Opportunity

First Phosphate Corp.

First Phosphate Corp. (CSE: PHOS, OTC: FRSPF, FSE: KD0)

First Phosphate is a mineral development company fully dedicated to extracting and purifying phosphate for the production of cathode active material for the Lithium Iron Phosphate (“LFP”) battery industry.

Four Key Drivers of Copper’s Surge

  1. U.S. Tariff Concerns: Last month, U.S. President Donald Trump signed an executive order launching an investigation into copper imports over “national security risks,” raising fears of a potential 25% tariff. This triggered a wave of stockpiling by traders, straining global supply and pushing prices higher.
  2. Persistent Supply Bottlenecks: A lack of investment in new mines and limited smelting capacity have created ongoing supply constraints. With large copper mine projects requiring long lead times and high capital investment, significant shortages are expected in the coming years.
  3. Green and Tech-Driven Demand Growth: The transition to renewable energy, including electric vehicles (EVs), solar, and wind power infrastructure, has significantly boosted copper consumption. Additionally, the growth of AI data centers and high-performance computing systems has spurred further demand.
  4. China’s Economic Recovery: China’s seasonally adjusted GDP grew by 1.6% in Q4 2024, its highest since Q1 2023. The government’s 2025 growth target of 4.6% and stimulus policies aimed at boosting domestic demand are expected to sustain a robust appetite for copper.

Five Copper Mining Stocks Gaining Investor Attention

Here are five copper mining companies poised for growth amid this price surge, thanks to their production expansion and heightened profitability potential:

1. BHP Group (BHP)

  • Production Goals: BHP targets copper production of 1.845 million–2.045 million metric tons for FY2025. Its Chilean projects are expected to reach a stable annual output of 1.4 million tons by the 2030s. The Olympic Dam smelter expansion in South Australia aims to increase local production from 322,000 tons in 2024 to 650,000 tons by 2035.
  • Strategic Projects: Holds stakes in major projects like Filo del Sol and Josemaria in Argentina. Additionally, BHP owns 45% of the Resolution Copper project in the U.S., which could contribute over 2 million tons of copper by 2035.
  • Financials: Expected FY2025 earnings growth of 3.6%. Year-to-date stock performance shows a modest increase of 1%.

2. Southern Copper Corporation (SCCO)

  • Resource Leader: The company holds the world’s largest copper reserves and aims for 967,000 tons of production in 2025. Its Michiquillay project in Peru, slated for a 2032 start-up, will add 225,000 tons annually for over 25 years.
  • Investments: Southern Copper has allocated $15 billion this decade for projects in Peru and Mexico, including the Buenavista zinc project and Tia Maria mine.
  • Financials: 2025 earnings are projected to grow 6.9%, with a 9.3% year-to-date stock increase.

3. Freeport-McMoRan Inc. (FCX)

  • Innovative Advances: Freeport’s upgraded leaching technology boosted North American copper output by 50% in 2024, with a long-term goal of 800 million pounds annually by 2030.
  • Key Projects: The Kucing Liar expansion could produce 7 billion pounds through 2041, while Bagdad and El Abra expansions will add 250 million and 750 million pounds annually, respectively.
  • Financials: Committed to allocating 50% of cash flow for dividends, with a 10.1% increase in 2025 projected earnings. Stock has climbed 9.3% so far this year.

4. Teck Resources (TECK)

  • Production Surge: Copper production grew 50.7% year-over-year in 2024, reaching 446,000 tons. By 2030, it plans to reach 800,000 tons annually.
  • Major Projects: Zafranal (126,000 tons annually) and Highland Valley (extended life span) are notable ventures, while San Nicolas is projected to produce 63,000 tons per year over its first five years.
  • Financials: Anticipating 78% profit growth in 2025. The stock has risen 3.4% year-to-date.

5. Amerigo Resources (ARREF)

  • Record Results: Delivered 6,500 pounds of copper in 2024, with net income surging from $3.4 million to $19.2 million. Production goals for 2025 stand at 62.9 million pounds.
  • Debt-Free by 2025: Amerigo aims to eliminate debt and increase 2024 dividends to $21.2 million.
  • Financials: Forecasted earnings growth of 75% for 2025, with an impressive year-to-date stock increase of 24.4%.

Summary

Copper prices have hit near-record highs amid trade, supply, and renewable energy trends, creating lucrative opportunities in the mining sector. Key stocks like BHP, Southern Copper, Freeport-McMoRan, Teck Resources, and Amerigo Resources are set to benefit significantly from rising demand and strategic investments. Observers expect continued momentum in copper markets, driven by technology advancements and robust demand from both China and the renewable energy sector.

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