Copper prices surged in 2024, breaking the US$5.00 per pound barrier for the first time and setting an all-time high on the COMEX of US$5.20 per pound on May 20.
Prices have since retreated but have largely traded above the US$4.00 per pound mark and above the average price of US$3.83 per pound in 2023.
Copper demand remained high in energy transition sectors. However, it was also affected by bottlenecks at Chinese smelters, which cut production during the first half of the year due to low treatment charges.
Against that backdrop, how have TSX-listed copper companies performed? Learn about the top five best-performing copper stocks in 2024 by year-to-date gains below. Data for this article was retrieved on December 16, 2024, using TradingView’s stock screener, and only companies with market capitalizations greater than C$50 million are included.
1. Trilogy Metals (TSX:TMQ)
Year-to-date gain: 189.29 percent
Market cap: C$259.05 million
Share price: C$1.62
Trilogy Metals is a polymetallic exploration and development company working to advance its Upper Kobuk mineral projects in Northern Alaska, US, which it owns in a 50/50 joint venture with South32( ASX:S32,OTC Pink:SHTLF).
Its most advanced asset is the Arctic copper, zinc, lead, gold and silver project, which is in the feasibility stage. In an updated feasibility study from February 2023, the company reported annual payable production volumes of 148.68 million pounds of copper, 172.6 million pounds of zinc, 25.75 million pounds of lead, 32,538 ounces of gold and 2.77 million ounces of silver.
After tax, the study pegged the net present value at US$1.11 billion, with an internal rate of return of 22.8 percent and a payback period of 3.1 years.
Trilogy’s other key asset is the Bornite copper-cobalt project located 25 kilometers southwest of its Arctic project. The site hosts widespread mineralization and has seen historic exploration dating back to the 1950s. A January 2023 technical report estimates inferred resources at 6.51 billion pounds of copper from 202.7 million metric tons of ore with an average grade of 1.46 percent.
The company has spent much of this year advancing roadwork to provide access to its projects, but it has met some headwinds while working with the US Bureau of Land Management (BLM). In an April 22 update, Trilogy said that the BLM filed the final supplemental environmental impact statement, which identified “no action” as the preferred alternative. This move effectively blocks the construction of the access road.
Trilogy said it would review the final impact statement, consider options and determine the next steps. For its part, the BLM formally rejected the proposed access route in its June record of decision, but presented several alternatives that have lessened impact on BLM managed lands.
The company’s most recent news came on October 8, when Trilogy released its Q3 results.
Shares in Trilogy reached a year-to-date high of C$1.89 on November 22.
2. Northern Dynasty Minerals (TSX:NDM)
Year-to-date gain: 75.9 percent
Market cap: C$387.16 million
Share price: C$0.73
Northern Dynasty Minerals is an exploration and development company focused on the Pebble project, a copper-molybdenum-gold-silver project located 200 miles southwest of Anchorage in the Bristol Bay region of Alaska, US.
Northern Dynasty describes the site as “one of the greatest stores of mineral wealth ever discovered.” It hosts measured and indicated copper resources of 6.5 billion metric tons and inferred copper resources of 4.5 billion metric tons. Its measured and indicated resources for molybdenum, gold and silver total 1.26 million metric tons, 53.82 million ounces and 249.3 million ounces respectively.
The project stalled in 2020 during the permitting phase following a US Environmental Protection Agency (EPA) veto that suggested the proposed mine would damage the Bristol Bay watershed. However, shares of the company surged following Northern Dynasty’s July 2023 announcement that the State of Alaska had appealed to the US Supreme Court to reverse the veto.
Earlier in 2024, the United States Supreme Court declined to hear the matter on procedural grounds, sending it back to the federal district court and federal circuit of appeals before the Supreme Court would hear it. In a release on January 16, Northern Dynasty said it was still working through state court.
Further updates on the case came on March 15, when the company said it had filed two separate actions to vacate the EPA’s veto, and on April 15, when the State of Alaska filed its own suit to vacate it. On June 26, the company reported that two Alaska native village corporations had also filed suits to overturn the EPA ruling.
The most recent news about the case came on August 19, when the Federal District Court in Alaska granted Northern Dynasty’s motion to modify the complaint against the EPA by adding the US Army Corps of Engineers (USACE) as a defendant. This request was made because Northern Dynasty said the EPA decision was based on the original USACE permit denial and should be linked. The company also said that it believes the actions taken by the EPA and USACE were wrongful and politically motivated.
Shares in Northern Dynasty reached a year-to-date high of C$0.76 on December 11.
3. NGEX Minerals (TSX:NGEX)
Year-to-date gain: 74.45 percent
Market cap: C$2.64 billion
Share price: C$12.63
NGEx Minerals, part of the Lundin Group, is a copper and gold exploration company focused on developing projects in Argentina and Chile. Its primary focus is the Los Helados and Lunahuasi (formerly Potro Cliffs) projects, both located within the Vicuña copper-gold district on the border of Argentina and Chile. The district is controlled by companies within the Lundin Group.
In December 2023, the company released an updated mineral resource estimate for Los Haldos, with indicated resources of 6.3 billion pounds of copper from 510 million metric tons of ore with an average grade of 0.51 percent. The estimate also included additional inferred resources of 600 million pounds of copper from 40 million metric tons of ore with an average grade of 0.62 percent.
NGEx shares have traded alongside rising copper and precious metal prices throughout the year, but several events have also significantly supported the company.
On February 20, the company announced it had received approval to begin trading on the TSX. At the time, company president Wojtek Wodzicki said the graduation marked a milestone for NGEx and would provide greater visibility and better access to fundraising opportunities.
The company’s August 12 Q2 results further supported its shares. In the release, the company said it had completed a successful drill program at Lunahuasi, drilling 15 holes totalling 12,952 meters and noting that the system remained open in all directions.
It also indicated that the program returned several high-grade intersections, with one highlight measuring 2.31 percent copper equivalent over 429.4 meters, including an intersection measuring 4.26 percent copper equivalent over 102.7 meters.
The company said the results demonstrate significant size potential with high-grade mineralization occurring over an area of 900 by 400 meters and to depths of 960 meters.
The most recent news came on November 12, when NGEx released its Q3 results. In the report, the company said it had started the phase 3 drill program at Lunahuasi, with six rigs in operation and 20,000 meters planned. The program aims to grow the deposit via step-out drilling.
4. First Quantum Minerals (TSX:FM)
Year-to-date gain: 71.90 percent
Market cap: C$16.18 billion
Share price: C$18.60
First Quantum Minerals is a copper mining and development company with a global portfolio of assets.
Its primary asset is the Cobre Panama mine, located west of Panama City, Panama. The mine boasts 3 billion metric tons of proven and probable reserves and represents 1 percent of the world’s copper supply. The mine was ordered to close down in November 2023 after the Panamanian Supreme Court invalidated an extension to the mine’s license.
In a December 2023 release, the company said it was working on developing a closure plan for the mine; however, it also noted that it was pursuing all appropriate legal avenues to protect its investment and rights.
In its Q1 results, released on April 24, First Quantum said it was continuing to work on a preservation and safe management plan for Cobre Panama and was also working to deliver the 121,000 metric tons of concentrate that remains on site.
Due to the ongoing situation in Panama, the company noted that it had undergone a refinancing program to improve its balance sheet and liquidity. This program included working out a prepayment agreement with Jiangxi Copper (SHA:600362,HKEX:0358) for US$500 million, the completion of a US$1.6 billion senior secured second lien at 9.38 percent due in 2029 and the issuance of 139.93 million common shares to raise US$1.15 billion.
The company also operates several mines in Zambia, including its Kansanshi copper-gold mine, Sentinel copper mine, and Enterprise nickel mine. Earlier in the year, First Quantum warned that production may be impacted in 2024 due to severe drought conditions caused by El Nino, which has reduced water levels in the Kafue and Zambezi rivers. The government declared a national emergency in March, and power generation in the country has been impacted.
First Quantum reported that it had minimized power disruptions due to offtake agreements signed with third-party traders for power sourced from the Southern African Power Pool. Due to increased power curtailments since the Q1 release, the company has had to increase the amount of power sourced from regional sources to 193 megawatts from the original 80 megawatts.
In the company’s third quarter results, First Quantum reported the production of 116,088 metric tons of copper, 11 percent higher than in Q2 but down from 221,550 metric tons produced in Q3 2023. The production drop was largely attributed to the closure of Cobre Panama, which contributed 112,734 metric tons during the quarter last year.
Cash costs came in at US$1.57 per pound during Q3, US$0.16 lower than the previous quarter. While the power deals pushed cash costs higher, the company mitigated costs through gold by-product credits during Q3, as well as higher copper production and lower fuel costs.
Both Kansanshi and Sentinel reported increased copper production during Q3. Kansanshi saw its highest levels since Q4 2021 with 49,810 metric tons, while Sentinel recorded copper production of 58,412 metric tons, an increase of 4,817 metric tons over Q2.
Shares of First Quantum reached a year-to-date high of C$20.70 on December 5.
5. Hudbay Minerals (TSX:HBM)
Year-to-date gain: 68.46 percent
Market cap: C$4.86 billion
Share price: C$12.23
Hudbay Minerals is a copper production and development company with producing mines in Peru and Canada. It also has projects in Peru and in the US.
According to Hudbay’s Q3 results, the Constancia copper mine and neighboring Pampacancha satellite pit in Peru produced a combined 21,220 metric tons of copper in the three months ending on September 30, an increase over the 19,217 MT produced in the previous quarter.
In Canada, Hudbay’s 75 percent-owned Copper Mountain mine in British Columbia produced 6,736 metric tons of copper, and its wholly owned Snow Lake operations in Manitoba achieved record results in the quarter. The operation produced 3,398 metric tons of copper, a 29 percent increase over Q2, when wildfires in the region impacted production. Both mines also produce gold and silver, and Snow Lake also produces zinc.
In addition to its mining assets, the company is advancing its Copper World project in Arizona, US. In its report for the first quarter, the company indicates that it is continuing to work on getting final state permits for the site and expects to receive them sometime in 2024. When complete, Copper World is expected to have a 20 year life.
According to a March 28 annual reserve and resource update, Copper World holds proven and probable average reserves of 385 million metric tons of ore grading 0.54 percent copper.
In an August 29 release, Hudbay announced it had received an aquifer protection permit from the Arizona Department of Environmental Quality. The company said the permit marks a key milestone and brings the project one step closer to being fully permitted.
The company is also working on its Mason project in Nevada, US. Hudbay is developing Mason as a long-term future asset with a 27 year mine life. A resource estimate shows measured and indicated resources of 2.22 billion metric tons at an average grade of 0.29 percent copper, and inferred resources of 237 million metric tons averaging 0.24 percent copper.
On May 24, Hudbay announced the completion of an upsized bought-deal offering, generating aggregate gross proceeds of US$402.5 million. The company said it intends to use the funds for near-term growth initiatives such as mill optimization at Copper Mountain.
Shares of Hudbay reached a year-to-date high of C$14.15 on May 20.
FAQs for investing in copper
Is copper a good investment in 2024?
Many experts have a positive long-term outlook for the red metal based on supply concerns and its growing role in the energy transition. Copper’s price has climbed to new all time highs in 2024, bringing many stocks with it.
Investors who are interested in copper should make sure to perform their due diligence, as the volatility and unpredictability of markets and economies at the moment means that nothing is guaranteed.
What is copper used for?
Copper is used in many industries, from construction to electronics to medical equipment. In fact, in 2020, 32 percent of copper globally was used in equipment manufacturing and 28 percent in building construction.
Two other growing sectors for copper are the burgeoning electric vehicle and green energy industries. Electric vehicles require a significant amount of the red metal per vehicle.
How to invest in copper?
Investors can get exposure to copper in a variety of ways. Holding physical copper is possible, but plenty of storage would be required to hold any significant value of the metal.
For investors looking to invest in the metal without physically holding it, there are a few options. Copper stocks such as those on the TSX, TSXV and ASX are worth looking at. Additionally, there are copper exchange-traded funds and the copper options and futures markets on the London Metal Exchange.
How to invest in a copper ETF?
Copper exchange-traded funds (ETFs) can be a good way to diversify an investment portfolio, and they can be a more stable option compared to individual copper miners or explorers. There are multiple options available on the market, and they can usually be purchased in the same way one could purchase stocks through a broker or trading platform.
In May 2022, Horizons launched Canada’s first copper equities ETF, the Horizons Copper Producers Index ETF (TSX:COPP), which is focused solely on pure-play and diversified copper-mining companies.
There are two ETFs available on the US ARCA exchange as well. The Global X Copper Miners ETF (ARCA:COPX) tracks the Solactive Global Copper Miners Index, which includes copper miners, as well as copper explorers and developers. The other option is the United States Copper Index Fund (ARCA:CPER), which gives investors exposure to copper futures contracts by tracking the SummerHaven Copper Index Total Return (INDEXNYSEGIS:SCITR).
How is copper priced?
The copper price is tracked in two ways: COMEX copper and London Metal Exchange (LME) copper. The COMEX and LME are both options and futures metal exchanges, with the former being headquartered in New York and the latter in London. COMEX copper is priced by the pound, while LME copper is priced per metric ton.
How is copper processed?
Once copper is mined, the ore goes through multiple steps to reach a market-ready state. First, the ore is ground to roughly separate the rock from the copper, as copper typically only makes up 1 percent of the mined rock.
The resultant copper is then slurried with water and chemical reagents, after which air is used to float the copper to the top of the mixture. After the copper is removed from this, it is typically at 24 to 40 percent purity.
Where is copper mined?
Copper is mined throughout the world, with significant production found on every continent besides Antarctica. Chile was the top producer in 2022, putting out 5 million metric tons of the metal. Rounding out the top five are Peru with 2.6 million MT, the Democratic Republic of Congo with 2.5 million MT, China with 1.7 million MT and the United States with 1.1 million MT.
Article by Dean Belder; FAQs by Lauren Kelly.
Securities Disclosure: I, Dean Belder, own shares in Northern Dynasty Minerals.
Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.
