The Opportunities & Benefits Of Investing In Copper Stocks
As the world looks to clean energy and potential alternatives to traditional commodities, savvy investors will find opportunities. On the current evidence, copper is likely to continue its strong global growth trajectory while potentially remaining a low risk element of the energy transition, making it a strong candidate for those looking to invest.
As Citi Research notes in its Wealth Outlook 2024, 176 lbs (approximately 80 kg) of copper goes into every electric vehicle, which is more than four times the copper in an internal combustion vehicle. This growth – and similar copper demand across clean energy technologies – is expected to push copper demand higher across the decade.
While global copper stocks are predicted to trend upward, copper stocks on the ASX offer access to Australian firms – like BHP, Havilah and Alara – which are all set to take advantage of the metal’s increasing demand. Let’s take a look at why these firms are potentially worth your time as part of a strong, diverse portfolio.
BHP Group Limited (ASX:BHP)
BHP Group Limited is one of Australia and the world’s biggest players in copper, producing 1716.5 kt (1,716,500 tonnes) in FY 23 across mines in Australia and South America. The group has made further inroads into the copper market recently, on the back of a $3.2 billion deal to mine the metal in Chile.
BHP stock has experienced some volatility in 2024 since hitting a high in December 2023, though it remains a strong ASX performer. BHP Group has, as of 2024, a market capitalisation of 198.72 billion AUD, making it among the largest mining companies in the world. With a diversified portfolio and a commitment to investing in copper, BHP looks set to remain a substantial player with potential for ongoing growth.
Havilah Resources Ltd (ASX:HAV)
A rising force in Australian mining, Havilah Resources Ltd touts a portfolio of 1.3 million tonnes of copper, alongside large production of gold, cobalt and iron ore. With its Mutooroo and Kalkaroo mines in South Australia – and an increasing focus on ethical and environmentally aware mining – Havilah Resources is expecting to see continued growth in its copper portfolio.
As a smaller prospect – particularly in comparison to market leaders like BHP Group – Havilah represents a lower-cost investment with potential upside. Considering its market cap of 62.76 million AUD and 52 week ASX stock price high of 0.28 AUD (as of September 2024), there is plenty of room to grow with Havilah Resources’ Australian copper stocks.
Alara Resources Limited (ASX:AUQ)
A mineral exploration and mining company with significant growth potential, Alara Resources Limited is a rising force in global copper production. With a joint venture in Oman with Al Hadeetha Resources – the Al Wash-hi – Majaza mine – expected to deliver 1000 tonnes of copper concentrate, Alara Resources represents a strong growth prospect for ASX investors.
A significantly smaller company than market leaders like BHP (and even growing players like Havilah Resources), Alara Resources boasts a market cap of 29.30 million AUD and a share price of 0.036 AUD as of September 2024. With its continued investment in Middle East copper prospects, Alara Resources is one of the best ASX copper stocks for savvy investors to keep an eye on.
Understanding The Risks & Considerations Of Copper Stocks
It’s no secret that metals and minerals have experienced price volatility in recent years. This has occurred particularly on the back of a general global push towards clean energy, as well as a sluggish Chinese economy as the powerhouse nation works through its own economic slowdown. This makes metals and minerals – and the mining companies investing in their extraction – less of a sure thing than was the case during the mining boom of the 2000s.
Despite this generally less-than-ideal market sentiment, copper stocks in Australia and around the world seem destined to buck the overall metals and minerals trend, being so closely tied to the future of green energy and its associated technologies. This puts copper in a unique position for investors, with the optimism of future demand weighed against an increasingly volatile market sector.
In this sense, it’s always worth understanding the risks before you proceed with investment. When considering your next move, thoroughly research the businesses involved, their recent moves, the diversity of their interests and their own level of investment in metals like copper. Most of all, it’s important to stay informed and up to date, and understand that there is always risk involved in investing.
How Sharewise Helps You Choose the Best Copper Stocks.
Institutional Quality Research
Make informed decisions with confidence.
Dive into comprehensive stock-specific analysis, primarily focused on blue-chip and mid-cap companies. Our exhaustive research from our financial advisors for the share market ensures you have a deep understanding of the market landscape to invest with clarity and assurance.
Comprehensive Market Reports
Stay ahead with global insights.
From daily morning rundowns covering global dynamics to weekly credit analyses diving into macro trends, our suite of reports ensures you're always in tune with both the local and international financial pulse.
Multi-Asset Strategies
Tailored investing for every risk appetite.
Whether you're risk-averse or open to high-reward opportunities, our diverse asset strategies ensure your portfolio aligns perfectly with your comfort level.
Buy/Sell Recommendations
Never miss an opportunity.
Backed by in-depth research, our buy and sell tips are more than mere suggestions – they're your gateway to optimised returns.
ASX Webinars
Interact with industry leaders.
Gain exclusive insights by attending our webinars and Q&A sessions, featuring discussions with ASX CEOs and top-tier executives. It's like a masterclass in investment, every time.
Account & Portfolio Management
Your investments, our dedicated attention.
With a dedicated online financial advisor and quarterly portfolio reviews, you can rest easy knowing your investments are under expert care. Setting long-term goals to enjoying a hands-off investment process, we're here every step of the way.
Investment Tips For Australian Copper Stocks
- Diversify your investments: Even within one sector, such as copper mining, it’s important to include diversity in your investment strategy. The logic of this is that, if one stock performs poorly, your overall position will be less affected if you have a range of investments.
- Review your portfolio: While it’s important to invest for the long term (as detailed below), it’s wise to ensure that you don’t treat investment as ‘set and forget’. Instead, regularly review the performance of stocks in your portfolio, staying up to date with share prices, market cap, financial outlook and other factors.
- Take a long-term approach: Stock investment rarely carries significant short term windfalls and investors are unlikely to benefit from being too reactive to changes in the market. In general, growth requires a long term view, with fluctuations and volatility in the short term often smoothed out by long term investment. Be patient.
- Join Sharewise: As an investment platform and community, Sharewise offers a space for investors to trade shares, learn from experts, share knowledge and keep up with the market. With strong values and investment expertise, joining Sharewise can be a great way to lower your investment risk and maximise your returns.
Performance Matters.
Numbers don't lie. Our performance stats are a testament to our investment prowess.
+13.35%
Our return for FY24
+12.90%
Our return for FY23
+20.88%
Our return for FY22
Past performance is not indicative of future performance.
Your Investment Journey To Wealth Creation Today.
Discover the transformative journey that Sharewise offers, guiding you toward financial empowerment and the growth of lasting wealth.
What Our Clients Are Saying!
Excellent company that provides lots of share opportunities to consider. Always available if you need to call and discuss the best options.
Michael T.
Very happy with Lachlan Callaghan at Sharewise. He understands our goals and we understand the strategy to get there. Great communication and quick responder. Very happy.
Lesley K.
Jonah Payne has been patient, friendly, honest,& professional. . Always keeps me informed with the progress of my shares. I’m happy with his knowledge of the market.
Cindy L.
Discover your Financial Potential.
Your financial journey matters to us. Our free ASX stock reports are here to provide you with valuable insights and knowledge. In a world of financial complexity, it provides clarity and guidance. Your journey to financial success begins here, with a tool designed to simplify your path and empower your decisions.
Guided Financial Compass
Our experienced advisors provide you with clear directional insights, ensuring you make informed decisions towards achieving your financial goals.
Effortless Portfolio Oversight
Our dedicated management ensures your investments are consistently monitored, adjusted and optimised, freeing up your time and reducing stress.
Curated Market Insights
We sift through the noise, providing you with in-house institutional grade stock market analysis tailored to your portfolio's needs.
Strategic Risk Management
We employ proactive risk assessment and management strategies, ensuring your portfolio is resilient against market volatilities.
Balanced Growth Approach
Our advisors take a balanced approach, focusing on both growth opportunities and safeguarding your investments from potential pitfalls.
Tailored Financial Blueprint
We consider your investment goals, comfort level, and risk appetite, ensuring you receive guidance that suits your investment style and preference.
Hear From More Happy Clients!
Great company, great communication and advise. Lachlan’s experience and professionalism is always well received. I highly recommend Lachlan as an advisor.
Domenic B.
We changed broker during the year as we were not getting great results. So glad we joined up with Harry at Sharewise. He has taken the time to genuinely get to know us and discuss our investing strategy. He is always quick to answer a text or phone call. And so far I can say that our portfolio is looking far healthier than it was before the switch.
Lisa H.
Harry has been a marvel - very helpful and chases me down on suitable stocks.
Can recommend them for great service and approaches.
