AUS
NZ
UK
CA
USA
IND
Summary
- First Quantum’s stock has swelled almost 106 per cent in the last three months, driven by the copper price rally.
- Units of Lundin Mining Corp have soared as much as 61 per cent in the same period.
- Both the copper stocks have made it to TMX’s top metal companies that have outperformed their peers with the largest price gains in the last one-month.
Copper price on the London Metal Exchange topped US$ 8,000 per tonne on January 6, its highest peak since February 2013. The metal price has witnessed a remarkable surge in the past few months. As, commodities across the globe were hammered by the COVID-19 led shutdowns, copper prices plunged to US$ 4,617 a tonne in March last year. But it has recovered handsomely since then, climbing about 33 per cent in the last one year.
The booming electric vehicle (EV) industry has played an important role in pushing the value of copper. An EV uses nearly 83 kg of copper during production, as per Copper Alliance data.
Let us have a look at two copper-related stocks that has done well in recent times:
First Quantum Minerals Ltd. (TSX:FM)
Current Stock Price: C$ 26.22
The mining company primarily engages in the production of copper. The mineral stock has rocketed almost 106 per cent in the last three months. Its scrips have returned over 111 per cent in one year.
In the third-quarter earnings of 2020, the company reported 211,396 tonnes of total copper production, a 10 per cent rise compared to Q3 2019, guided by a record production at Sentinel and Cobre Panama mines.
The stock has a 50-day average trading volume of nearly 2.6 million units. Its current market cap is approximately C$ 18 million. Its present price-to-cashflow stands at 9. The copper producer is paying a steady semi-annual dividend of C$ 0.005 per common share, according to TMX data.
Lundin Mining Corporation (TSX:LUN)
Current Stock Price: C$ 12.35
The Canada-based metals mining company primarily explores and produces copper, nickel, and zinc.
Stocks of this mining corporation have soared over 61 per cent in the last three months. Units of the company yielded a one-year return of more than 65 per cent.
The corporation recorded 61,444 tonnes of copper production in the third quarter of 2020, compared to 74,560 tonnes in Q3 2020. The year-over-over production of copper declined in the quarter due to the COVID-19 led operational shutdown.
Stock of the copper miner hold a present 50-day average volume of nearly 2.5 million and offers earnings per share of C$ 0.25. It delivers a positive return on equity of 3.75 per cent and a return on assets of 2.02 per cent.
The company is distributing a quarterly cash dividend of C$ 0.04 per common stock, with a current dividend yield of 1.296 per cent. Its three-year dividend yield is 8.23 per cent as per the TMX portal.
