8 Best Copper Stocks To Buy According to Hedge Funds

6. Southern Copper Corporation (NYSE:SCCO)

Number of Hedge Fund Holders: 25

Southern Copper Corporation (NYSE:SCCO) is a major mining company that primarily focuses on producing copper, along with other valuable metals like molybdenum, silver, and zinc. The company has several mines in Peru and Mexico and also explores new mineral deposits in countries like Argentina, Chile, and Ecuador. In addition to mining, it also uses raw materials through smelting and refining to produce pure metals. This includes turning copper concentrates into refined copper products.

Southern Copper Corporation (NYSE:SCCO) is closely tied to the dynamics of the copper market and currently, the market conditions look favorable. As per the company’s third-quarter results for fiscal 2024, the international copper prices have increased by 10% from $3.79 per pound in Q3 2023 to $4.17 in the last quarter. Due to the changing supply and demand dynamics, management is expecting a slight market surplus of about 100,000 tons of copper for 2024. On the demand side, although China, the largest consumer of copper, remains weak at the moment, management believes that the recently announced economic measures will promote economic growth and fuel demand for copper products.

During the third quarter, copper represented 77% of the company’s total sales. The company grew its copper production by 11% on a quarter-on-quarter basis to reach 252,219 tons. Its Peru production site remains one of the key contributors as it grew production by 18% during the same time, driven by higher mineral throughput at Cuajone and higher ore grades and recoveries at Toquepala. Management expects to produce 7% more copper in 2024 as compared to the previous year by reaching 975,000 tons of copper by the end of the year. It is one of the best copper stocks to buy according to hedge funds.