Commodities markets have always been volatile, and copper is no exception right now. Since retreating from its spring highs, inflation has persisted, and investor concerns about slowing global growth have intensified. However, in the long term, significant supply-side constraints and structural demand growth characterize the copper market. Against this backdrop, copper stocks exhibit a “long-term uptrend with short-term fluctuations” investment value, suitable for long-term holding.
Specifically for the Canadian stock market, are Canadian copper stocks First Quantum Minerals (TSX:FM) and Capstone Copper (TSX:CS) worth buying now? Let’s analyze them in detail:
Despite a modest rebound in recent months bringing First Quantum Minerals’ share price close to its 52-week high, it remains 35% below its 2023 price level. This stems from the closure of its Cobre Panamá mine in Panama late last year. This mine contributed approximately 40% of the company’s profits, hence the profound impact. The latest financial results were also disappointing: Q1 2025 revenue was C$1.19 billion, down quarter-over-quarter; net profit was C$331 million, achieving a turnaround from a loss in Q1 2024 but still down quarter-over-quarter.
In response, the company is stabilizing its situation by significantly reducing capital expenditures, cutting jobs, and improving operational efficiency (a strategy currently adopted by most mining companies). Copper production last quarter still reached 99,703 tonnes, and its African assets continue to deliver stable output. Although debt stands at C$5.79 billion due to its Kansanshi S3 project, the company maintains sufficient liquidity and recently secured extended credit facilities. From a macro perspective, surging copper demand driven by electrification, renewable energy, and electric vehicles provides a favorable industry environment for First Quantum.
Overall, while this Canadian copper stock’s valuation is not high, its risk is not low either, making it suitable for investors bullish on copper prices and tolerant of volatility.
Falling copper prices have triggered investor panic, causing Capstone Copper’s stock to drop more than 27% from its April high. Its price-to-book (P/B) ratio and forward price-to-earnings (P/E) ratio have fallen to approximately 1.5x and 25.77x respectively. Does this create an opportunity for investors to buy the dip?
Capstone operates copper mines in Chile, Arizona (USA), and Mexico. Its key investment highlight is the Santo Domingo project in Chile, developed in partnership with the Chilean government. The company states that this massive mine is progressing steadily, with first production expected in 2027, poised to drive Capstone’s growth for many years to come. Additionally, the company reported record Q1 2025 revenue of C$533 million (up from C$340 million a year earlier), and adjusted EBITDA nearly doubled to C$180 million. Furthermore, the company reaffirmed its full-year production guidance.
Capstone Copper is currently in an investment phase, putting short-term cash flow under pressure. However, management firmly believes the company will benefit from strong copper prices in the long term. Analysts also view the stock as undervalued, citing long-term demand drivers from electrification and energy infrastructure.
