Six ASX Stocks To Watch As Copper Hits An All-Time-High

Summary

  • Copper prices have almost doubled in the past one year.
  • Amid robust economic recovery, copper prices have hit all-time high level.
  • A dramatic surge in copper demand after ease in lockdown coupled with stimulus packages has skyrocketed its demand.
  • Many ASX-listed miners are capitalising on the ongoing copper rally.

Copper prices soared to all-time high on 10 May 2021. Copper futures for July delivery last traded at US$4.84 per pound on COMEX as of 10 May 2021. The copper prices have almost doubled in the past one year.

The previous record in the copper prices was noticed in 2011 during the peak of commodity supercycle.

The demand for copper is a reliable indicator of economic development as the reddish-brown metal is used in almost every industry. Due to its wide applicability and direct relation with economic health, it is sometimes referred to as "Copper-Doctor".

Source: © Gana123 | Megapixl.com

The current surge in copper prices is being fuelled by a rapid economic recovery in leading economies, including the US, China, Germany and Japan. A surge in demand for electric vehicles coupled with Joe Biden’s US$2.3 trillion infrastructure development plan has also glinted the copper rally. Moreover, China's move to limit carbon emissions has boosted the red metal demand as a key ingredient in the energy transition.

Must Read: Commodity Market at Multi-Year Highs, 10 Hot Stocks to look at

The robust demand is putting extra pressure on copper miners to maintain the market equilibrium.

Let's look at six copper stocks that are capitalising on the current copper rally.

OZ Minerals Limited

OZ Minerals Limited (ASX: OZL) is an Australia-based copper and gold focused player with operations in Brazil and Australia. The company holds numerous copper projects in western and southern Australia.

The miner produced 26,842 tonnes of copper in the March 2021 quarter. The company is well-positioned to achieve its FY21 guidance of 120Kt to 145Kt for copper production.

Good Read: How OZL and SFR are faring on the charts amid a surge in copper price?

Aeris Resources Limited

Aeris Resources Limited (ASX:AIS) is a copper miner with its head office in Brisbane, Australia. The miner holds two fully owned projects in NSW and Queensland.

The miner produced 5,270 tonnes of copper from its Tritton project with an AISC of A$4.0 per pound. The company has revised its copper production guidance at Tritton Copper Operations to 22.5Kt - 23.5Kt @ AISC A$3.60/lb – $3.75/lb for FY21.

Castillo Copper Limited

Castillo Copper Limited (ASX: CCZ) is an Australia and Zambia focused copper, nickel, zinc and cobalt producer. The miner holds the Cangai copper mine in NSW, Mt. Oxide project in Queensland and several high-scale copper projects in Zambia.

With robust projects, strong team and next-level technology, the miner is progressing to establish itself as a mid-tier copper group.

Sandfire Resources Limited

Sandfire Resources Limited (ASX: SFR) is a mid-tier ASX-listed copper mining company boasting a consistent and profitable track record. The company holds various copper projects in Australia, Botswana, and the US.

The miner produced 16,803 tonnes of copper in the March quarter and is well-positioned to achieve its FY21 guidance of 67Kt to 70Kt.

Must Watch: ASX 200 today: Will commodity supercycle keep Australian market higher?

Copper Mountain Mining Corporation

Copper Mountain Mining Corporation (ASX: C6C) is an ASX and TSX-listed miner with flagship assets located in word-class mining jurisdictions. The miner holds various copper projects in British Columbia and Australia.

The miner produced 30.4 million pounds of copper equivalent in March quarter, ending the period with a C1 cash cost of US$1.15/lb.

Venture Minerals Limited

Venture Minerals Limited (ASX: VMS) is an Australia focused copper, iron ore and tin miner. The company holds the Golden Grove, Caesar, Kulin and South-West projects in Western Australia.

VMS commenced drilling at its Golden-Grove project in the last quarter to test priority zinc-copper-gold targets.  

Must Read: ASX Copper Stocks Slide On China’s Commodity Price Capping Move

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