8 Best Copper Stocks To Buy According to Hedge Funds

5. Rio Tinto Group (NYSE:RIO) 

Number of Hedge Fund Holders: 30

Rio Tinto Group (NYSE:RIO) is a United Kingdom-based mining and metals company, which operates in more than 35 countries around the world. The company engages in the extraction of copper, iron ore, aluminum, and diamonds. It also processes the raw metals and makes them ready to be used in the development of future technologies, such as electric vehicles and renewable energy storage.

The company is on track to achieve its ambition of growing its overall copper equivalent production by a 3% compound annual growth rate from 2024 to 2028. Rio Tinto Group (NYSE:RIO) has improved its copper and gold position significantly due to the development of the Winu Project. On December 4, management announced its partnership with Sumitomo Metal Mining (SMM) to develop the Winu copper-gold project located in Western Australia’s Great Sandy Desert. The Winu project is expected to contribute significantly to the company’s copper output, which is crucial as global demand for copper continues to rise, particularly in renewable energy technologies and electric vehicles.

During the fiscal third quarter of 2024, the total copper production of the company decreased slightly by 1% year-over-year to reach 168,000 tonnes of copper. The slight decrease was primarily due to a significant 44% production drop at Kennecott. Management attributed the decline to high wall movement along two major faults, limiting access to high-quality ore. However, on the bright side, Escondida saw a 15% increase in production due to higher ore grades being processed, thereby improving recovery. Moreover, Oyu Tolgoi also experienced a 19% increase in copper production, driven by ramping up underground operations and accessing higher-grade ore. It is one of the best copper stocks to buy according to hedge funds.