8 Best Copper Stocks To Buy According to Hedge Funds

4. Hudbay Minerals Inc. (NYSE:HBM)

Number of Hedge Fund Holders: 35

Hudbay Minerals Inc. (NYSE:HBM) is a mining company that primarily focuses on copper production. It is one of the best copper stocks to buy according to hedge funds. The company operates several mines that extract copper, with Constancia Mine in Peru, Snow Lake Operations, and Copper Mountain Mine in Canada being the key contributors.

The company is strategically positioning itself for growth through a series of promising projects. For instance, its integration of the Copper Mountain mine is expected to significantly boost financial performance. By 2026, this acquisition is projected to contribute approximately $180 million in annual EBITDA. It also has several long-term projects in development, which advocate for its upcoming potential, such as the Copper World Project and Mason Project.

In addition to its projects, Hudbay Minerals Inc. (NYSE:HBM) maintains a prominent financial position. During the third quarter of fiscal 2024, it produced 31,000 tons of copper and 89,000 ounces of gold. The gold production was particularly noteworthy, exceeding expectations by 52% compared to the previous quarter. This increase was attributed to higher gold grades and improved mill throughput, especially at the New Britannia mill in Manitoba. On the copper front, the management cost-saving measures resulted in a dramatic decrease in cash costs per pound of copper from $1.14 in the second quarter to $0.18 in the recent one.

L1 Long Short Fund stated the following regarding Hudbay Minerals Inc. (NYSE:HBM) in its Q2 2024 investor letter:

“Hudbay Minerals Inc. (NYSE:HBM) (Long +31%) shares rallied over the quarter driven by rising copper and gold prices, as well as strong production results. The company’s first quarter results showed higher gold production and robust operating performance at both its major assets, which exceeded consensus expectations. In addition, the company announced a ~US$400m equity raise to support balance sheet de-leveraging and fund its key growth projects. Hudbay is a mid-tier mining company primarily producing copper, alongside gold and zinc, with its key assets located in Canada and Peru. We are attracted to Hudbay due to our positive medium-term outlook for copper and the company’s strong near-term free cash flow generation. This cash generation potential will allow the company to de-lever and recycle capital back into its highly prospective exploration program and major growth projects, most notably its Copper World project in Arizona.”