5 Best Copper Stocks To Buy For 2023

In this article, we discuss 5 best copper stocks to buy for 2023. If you want to see more stocks in this selection, check out 10 Best Copper Stocks To Buy for 2023. 

5. Rio Tinto Group (NYSE:RIO)

Number of Hedge Fund Holders: 29

Rio Tinto Group (NYSE:RIO) is a global company that explores, mines, and processes mineral resources worldwide. It provides a range of resources such as aluminum, copper, iron ore, diamonds, gold, borates, titanium dioxide, salt, silver, molybdenum, and lithium. Rio Tinto Group (NYSE:RIO), founded in 1873, is headquartered in London, UK. On March 13, Rio Tinto Group (NYSE:RIO) announced that it has commenced underground mining at the Oyu Tolgoi copper mine in Mongolia, which will expand the operation and make it the fourth-largest copper mine globally by 2030. It is one of the best copper stocks to invest in. 

On March 2, Goldman Sachs upgraded Rio Tinto Group (NYSE:RIO) to Conviction Buy from Buy. The firm stated that the stock has attractive relative valuation when compared to its competitors, as well as impressive free cash flow and dividend yield. Additionally, Goldman Sachs is optimistic about the prices of iron ore, aluminum, and copper, and Rio Tinto Group (NYSE:RIO) is expected to experience substantial production growth in iron ore and copper.

According to Insider Monkey’s fourth quarter database, 29 hedge funds were bullish on Rio Tinto Group (NYSE:RIO), compared to 26 funds in the prior quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with 8.4 million shares worth $600 million.

4. Barrick Gold Corporation (NYSE:GOLD)

Number of Hedge Fund Holders: 40

Barrick Gold Corporation (NYSE:GOLD) explores, develops, produces, and sells gold and copper properties. The company was established in 1983 and is headquartered in Toronto, Canada. On February 15, Barrick Gold Corporation (NYSE:GOLD)’s board of directors approved a new plan to buy back the company’s common shares in the open market for up to $1.0 billion over the next year at the current market prices.

On February 23, National Bank analyst Mike Parkin reiterated a Sector Perform rating on Barrick Gold Corporation (NYSE:GOLD) and lowered the firm’s price target on the shares to C$28 from C$29. 

According to Insider Monkey’s fourth quarter database, 40 hedge funds were long Barrick Gold Corporation (NYSE:GOLD), compared to 35 funds in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the biggest stakeholder of the company, with 42.2 million shares worth $726.2 million. 

Old West Management made the following comment about Barrick Gold Corporation (NYSE:GOLD) in its Q4 2022 investor letter:

“Barrick Gold Corporation (NYSE:GOLD) is the second largest gold miner in the world, with operations in the U.S., Canada, Africa, South America and more. Barrick is also a major copper producer. Former Goldman Sachs executive John Thornton took control of the company in 2012 and quickly realized he wanted someone with a mining background to run the company. Mark Bristow, at that time CEO of Randgold, was considered one of the best gold mining executives in the world. Thornton wanted Bristow so badly Barrick bought Randgold in 2018. Bristow, who is South African, had extensive experience operating mines throughout Africa, and in fact would fly his own single engine plane to visit mines. He has his PhD in Geology, and he has flourished running Barrick the past five years.

Barrick is estimated to have $1.6 billion of net income this year on $11.5 billion of revenue. Net Income has been growing 15% per year. The stock trades at $19.00 per share which is 16 times forward earnings, and the stock has a 3.15% dividend yield. Barrick has a fortress balance sheet with $5.7 billion in cash and $5 billion of long term debt, which is only one time EBITDA.”

3. Newmont Corporation (NYSE:NEM)

Number of Hedge Fund Holders: 50

Newmont Corporation (NYSE:NEM) primarily deals with gold production and exploration. Additionally, the company explores for copper, silver, zinc, and lead. Newmont has assets and operations in various countries, including the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, and Ghana. The company was established in 1916 and has its headquarters located in Denver, Colorado. On February 23, Newmont Corporation (NYSE:NEM) declared a quarterly dividend of $0.40 per share. The dividend is payable on March 23, to shareholders of record on March 9. 

On March 14, ​​Carey MacRury, an analyst at Canaccord, upgraded Newmont Corporation (NYSE:NEM) from Hold to Buy and raised the price target on the shares to $55 from $53. This upgrade is based on the valuation of the company after considering its Q4 results, updated guidance, and reserve and resources. The analyst views the Q4 results and updated guidance as being “in line to slightly positive” and noted that Newmont Corporation (NYSE:NEM) has reset its dividend framework, as anticipated.

According to Insider Monkey’s fourth quarter database, 50 hedge funds were long Newmont Corporation (NYSE:NEM), compared to 53 funds in the last quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP is a significant position holder in the company, with 4.65 million shares worth $220 million. 

Here is what First Eagle Investments Global Fund has to say about Newmont Corporation (NYSE:NEM) in its Q2 2022 investor letter:

“Shares of Colorado-based Newmont, the largest gold miner in the world, experienced weakness in the quarter as falling gold bullion prices and cost inflation hurt miners in general. More idiosyncratically, the company reported slightly disappointing earnings and production results for its most recent quarter due to pandemic-related disruptions, ongoing supply-chain constraints, and labor shortages.

It also warned that operating costs for 2022 were likely to come in at the upper end of previous guidance. We remain constructive on the stock, which offers steady production anchored in good jurisdictions, a good pipeline of organic projects, a strong balance sheet, and proven management.”

2. Teck Resources Limited (NYSE:TECK)

Number of Hedge Fund Holders: 62

Teck Resources Limited (NYSE:TECK) is involved in the exploration, acquisition, development, and production of natural resources across Asia, Europe, and North America. Its products consist of copper, zinc, steelmaking coal, and blended bitumen, lead, silver, and molybdenum. The company was established in 1913 and is headquartered in Vancouver, Canada. On February 21, Teck Resources Limited (NYSE:TECK) declared a C$0.125 per share quarterly dividend, in line with previous. The dividend is payable on March 31, to shareholders of record on March 15. 

On March 14, Scotiabank analyst Orest Wowkodaw raised the firm’s price target on Teck Resources Limited (NYSE:TECK) to C$75 from C$70 and kept an Outperform rating on the shares.

According to Insider Monkey’s fourth quarter database, 62 hedge funds were bullish on Teck Resources Limited (NYSE:TECK), compared to 47 funds in the last quarter. John Armitage’s Egerton Capital Limited is the largest stakeholder of the company, with 11.4 million shares worth $431 million. 

1. Freeport-McMoRan Inc. (NYSE:FCX)

Number of Hedge Fund Holders: 68

Freeport-McMoRan Inc. (NYSE:FCX) engages in the mining of mineral properties in North America, South America, and Indonesia. The company explores for copper, gold, molybdenum, silver, and other metals, as well as oil and gas. It is one of the best copper stocks to monitor. On February 2, Freeport-McMoRan Inc. (NYSE:FCX) said it expects significant construction of its $3 billion Indonesian copper smelter, one of the largest in the world, will be concluded by the end of this year.

On March 14, BMO Capital analyst Katja Jancic took over coverage of Freeport-McMoRan Inc. (NYSE:FCX) with an Outperform rating and a price target of $54.

According to Insider monkey’s fourth quarter database, 68 hedge funds were bullish on Freeport-McMoRan Inc. (NYSE:FCX), compared to 57 funds in the prior quarter. Ric Dillon’s Diamond Hill Capital is the largest stakeholder of the company, with approximately 11 million shares worth $414.6 million. 

Diamond Hill Large Cap Strategy made the following comment about Freeport-McMoRan Inc. (NYSE:FCX) in its Q4 2022 investor letter:

“Other top contributors during the quarter were copper producer Freeport-McMoRan Inc. (NYSE:FCX) and health care facilities operator HCA Healthcare. With little fundamental news to report, Freeport-McMoRan’s share price advance in Q4 reflected a rebound in copper prices, driven by the recognition that copper inventories are low relative to historical norms. We believe the company continues to have meaningful price and volume leverage in a copper constrained world.”

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