In this article, we discuss the 5 biggest copper companies in the world. To read the industry analysis, you can go directly to the 15 Biggest Copper Companies in the World.
5. Vale S.A. (NYSE:VALE)
Market Cap as of November 25: $71.1 billion
Vale S.A. (NYSE:VALE) is a Brazilian metals and mining company. It is also the country’s biggest logistics operator. Apart from the production of copper, manganese, ferroalloys, potash, kaolin, bauxite, and cobalt, the company also operates several hydroelectric plants in Brazil.
On November 23, Deutsche Bank analyst Liam Fitzpatrick upgraded Vale S.A. (NYSE:VALE) to Buy from Hold with a $20 price target, up from $19. According to the analyst, the 30% decline from the YTD high creates an entry point for investors “with sector-leading shareholder returns, medium-term growth optionality, and low reinvestment needs.”
Here is what GMO LLC had to say about Vale S.A. (NYSE:VALE) in its Q1 2022 investor letter:
“Let’s look at Vale (NYSE:VALE), the world’s largest iron ore producer, as a case study for how shareholders can be rewarded. Vale’s stock price is about where it was at the beginning of last year. Despite the market’s lack of enthusiasm, the company generated about $20 billion of free cash flow last year. Not bad for a company with a market cap of a little over $100 billion and no substantive debt as of the end of March. 4 What did the company do with all that cash? Last year, Vale paid out about $9 billion in regularly scheduled dividends and distributed another $10 billion between extra dividends and share repurchases. Combined with dividends distributed in the first quarter of this year and a recently announced share repurchase, Vale has returned or announced the return of over $33 billion since the beginning of last year, almost a 32% yield relative to the market cap of the company. Not a bad way to win.”
4. Glencore plc (OTC:GLNCY)
Market Cap as of November 25: $85.464 billion
Glencore plc (OTC:GLNCY) is an Anglo-Swiss mining company headquartered in Baar, Switzerland. Apart from mining, the company also has oil and gas operations with the division’s head office located in Saint Heller, Jersey.
Over the past few months, Glencore plc (OTC:GLNCY) has faced a decline in copper, zinc, lead, nickel, gold, and silver production. However, even after a 14% decline in copper production, Glencore plc (OTC:GLNCY)’s outlook for copper production remains unchanged. The company produced 770.5 kilometric tonnes of copper in the first nine months of the year. On the other hand, the company cut its guidance on zinc, coal, and nickel production.
On November 23, Bernstein analyst Bob Brackett upgraded Glencore plc (OTC:GLNCY)’s shares from Market Perform to Outperform. He also raised his price target to 770 GBp from 560 GBp. Brackett believes that the company’s coal business “will generate extraordinary returns over the next several years.”
3. Rio Tinto Group (NYSE:RIO)
Market Cap as of November 25: $106.50 billion
Rio Tinto Group (NYSE:RIO) engages in the exploration, mining, and processing of aluminum, copper, diamonds, gold, borates, titanium dioxide, salt, iron ore, and lithium. The company offers a mammoth dividend yield of 8.11% as of November 25 and has a payout ratio of 80.46%.
On November 23, Deutsche Bank analyst Liam Fitzpatrick reiterated a Hold rating for Rio Tinto Group (NYSE:RIO)’s shares and raised the price target to 5,800 GBp from 5,700 GBp. According to the analyst, the medium-term fundamentals seem strong, but the demand and macro risks “are high.”
2. BHP Group Limited (NYSE:BHP)
Market Cap as of November 25: $213.25 billion
BHP Group Limited (NYSE:BHP) is an Australian mining company. It mines copper, iron ore, gold, molybdenum, zinc, silver, and coal. As of Q3 2022, 20 hedge funds had a stake in the company, and Fisher Asset Management was the most prominent stakeholder. The firm had 17.6 million BHP Group Limited (NYSE:BHP)’s shares, worth $881.24 million.
BHP Group Limited (NYSE:BHP) is looking forward to making aggressive expansions. In mid-November, the company made a new offer of AU$9.6 billion or AU$28.25 per share for the acquisition of OZ Minerals Ltd., a copper production company. The previous offer of AU$25 per share was rejected by OZ Minerals in August. Moreover, BHP Group Limited (NYSE:BHP) is planning to invest $5.7 billion in its new mining site for potash, the Jansen project. Production is expected to start by 2026.
On November 23, BofA analyst James Redfern upgraded BHP Group Limited (NYSE:BHP)’s stock to Buy from Neutral and raised the price target to AU$47.5 from AU$45, owing to a positive view on copper.
1. Codelco (Private)
Revenue in 2021: $21 billion
Codelco is a Chilean state-owned copper mining company. It is the largest copper-producing company in the world. The company produced 1.73 million metric tonnes of copper in 2021. Moreover, in the last decade, Codelco’s copper production peaked in 2015 at 1.89 million metric tonnes of copper produced.
Codelco has been the world’s largest copper producer for a long time, but its position seems to be threatened by recent developments. The company cut its production guidance for 2022 from 1.61 million tonnes to the range of 1.49 million and 1.51 million. Codelco claims that the decline in production is due to lower recovery levels at the Chuquicamata site in Chile and fatal accidents that put a pause on some construction works. Additionally, Codelco plans on reducing exports to China by 50% due to production challenges.
You can also take a look at Louis Navellier’s Top 10 Stock Picks for Q4 2022 and 11 Best Digital Payments Stocks To Buy Now.
