By - Nidhi Gupta
Highlights
- SolGold’s wholly owned subsidiary Carnegie Ridge Resources, commenced drilling activity at the Rio Amarillo project in Northern Ecuador.
- Alien Metals had recently started preparation to begin Phase 3 drilling at the Hancock Iron Ore Project in Pilbara.
The copper industry includes companies that are engaged not only in the exploration, and extraction but development, and production of the industrial metal. Demand for the metal heavily depends on the economic cycles as it is used across various applications, including electronics, construction, transportation, industrial machinery, and power generation and transmission. The lockdown restrictions had put on hold or temporarily halted all activities at mining facilities. However, easing of lockdown restrictions resulted in the resumption of copper mining activities to address the demand from various end-user industries.
Here we take a look at two copper stocks and explore the investment prospect in them.
SolGold plc is an emerging company focused on copper-gold discovery and development in Ecuador. On 2 September 2021, the company commenced drilling activity at its Rio Amarillo project in the Northern region of Ecuador through Carnegie Ridge Resources S.A., a wholly-owned subsidiary of SolGold. Exploration drilling to a depth of 1,500 metres at the company’s Varela porphyry Cu-Au-Mo target site at the Rio Amarillo project is currently underway.
SolGold reported a loss before tax of US$14.12 million in 2020 as compared to a loss of US$32.1 million in 2019. The decrease in SolGold’s loss before tax is due to the 2019 share-based payment expense of US$23.9 million.
SolGold’s shares traded at GBX 29.10 at 8.05 AM on 2 September 2021. The company’s shares gave a return of 13.46% in the last one year to shareholders, and the market cap stood at £667.50 million.
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Alien Metals Limited is a mineral exploration and development company. It is engaged in identifying early-stage exploration projects across favourable mining jurisdictions.
On 24 August 2021, Alien Metals announced the commencement of preparation to begin Phase 3 drilling at the Hancock Iron Ore Project in Pilbara, Western Australia. Lab results from the Hancock project support its potential of attaining the status of a standalone direct shipping ore (DSO) producer.
Alien Metals’ shares traded at GBX 0.78 at 8.37 AM on 2 September 2021. The company’s shares gave a return of 31.50% in the last one year to shareholders, and the market cap stood at £26.54 million.
Way ahead
The easing of lockdown restriction and resumption of activities across key sectors are driving demand for copper. Rising demand is expected to fuel an increase in copper mining and exploration activities aimed at meeting the growing demand. Consequently, investors could invest in copper stocks to leverage the high demand for the metal and the future growth.