7 Best Copper Stocks to Buy According to Analysts

4. Vale S.A. (NYSE:VALE)

Number of Hedge Fund Investors  in Q1 2024: 34

Analyst Average Share Price Target: $15.22

Upside: 38.26%

Vale S.A. (NYSE:VALE) is another global mining giant that mines copper along with other industrial metals. Just like its peer Rio Tinto, the firm also relies on iron for a large portion of its earnings. And just like Rio, Vale S.A. (NYSE:VALE) is also pivoting towards metals that are being used in electrification – copper and nickel. Its Salobo mines in Brazil are the largest copper deposits in Brazil, and they allow Vale S.A. (NYSE:VALE) the opportunity to rapidly capture a piece of the global copper pie as other miners gradually invest in new sites. Salobo also contributed to a hefty growth in Vale S.A. (NYSE:VALE)’s copper production in Q1. During the quarter, it produced 81.9 kilo tons of copper which marked a 22% annual growth. Similarly, its copper sales also jumped by 22.5% during the quarter and sat at 76.8 kilo tons. The Q1 figures built on strong copper production in Q4 and full year 2023. During Q4, Vale S.A. (NYSE:VALE)  produced 99,100 tons of copper (50% annual jump) and it ended the year by producing 326,000 tons for a 29% annual growth. Not looking to slow down, Vale S.A. (NYSE:VALE) aims to spend $3.3 billion in its Brazilian and Canadian mines to expand annual production to 500,000 tons by 2028.

Commenting on these developments and how they’re leading to lower costs as well, Vale S.A. (NYSE:VALE)’s management shared during its Q1 2024 earnings call:

Our copper all-in costs decreased by 26% year-on-year driven by continued successful ramp-up of Salobo 3 and improved operational performance at Salobo 1 and 2. The higher proportion of Salobo 3 volumes in the product mix has also contributed to an increase in unit by product revenues with higher gold sales. Nickel all-in costs were down 14% year-on-year supported by higher unit by product revenues. The unit COGS increase was expected and largely related to the furnace rebuild at Onça Puma. I would like to also mention that Mark Cutifani and the VBM team continue to make significant progress on the asset review. The Vale unlock opportunities are being assessed and designed for implementation over the next two to three years with some benefits already being captured in the shorter term.