Copper is among the world's most highly consumed metals. It has an abundance of uses – from our homes to industrial machinery and it will even play a critical role in reaching net-zero.
As of late 2022, copper consumption was estimated to be around 26 million tones, or up 2.1% on 2021. In Australia, exports fell to 813,000 tonnes due to production constraints. But that doesn't mean Australia won't be lifting its copper exports, with predictions saying we will export 895,000 tonnes by 2024.
If you're looking to invest in copper stocks, you can choose between pure-play copper stocks on the Australian Securities Exchange (ASX), such as Sandfire (SFR) and OZ Minerals (OZL), or you can buy miners that produce many different metals including copper, such as BHP Group (BHP).
This guide will cover how you can invest in copper stocks in Australia. It breaks down the pros and cons of buying copper stocks on the ASX, copper ETFs and copper futures.
What are ASX copper stocks?
If you're looking to invest in copper then ASX copper stocks give you exposure to the industrial metal. They include a bunch of well-known Australian companies such as BHP and Rio Tinto, as well as smaller miners you might not know yet.
If you're looking to invest in copper stocks you'll have 2 options:
Pure-play copper companies: These are businesses that focus exclusively on copper production.
Large mining companies that have a diversified portfolio: These are miners that produce copper and a bunch of other minerals.
Both have strengths and weaknesses. A pure copper miner has a greater exposure to copper, which in times when the price of the asset is rising can be a good thing. But it comes with more risks as you don't have downside protection which more diversified miners have.
What is copper used for?
Copper is a reddish-orange metal that is corrosion-resistant and an excellent conductor of heat and electricity. In its natural state, copper is soft, solid and can be moulded into different shapes and thicknesses.
It is naturally found in ore deposits that are mined or leached. Mining crushes and grinds the ore into powder, where the unwanted materials and other impurities are removed. Leaching uses sulphuric acid to remove the copper from the other ore minerals.
Copper has a plethora of uses across 5 main markets:
Construction. Wiring, heating, refrigeration and plumbing all use copper materials.
Electrical and electronics. Utilities and electronics need copper wiring and parts.
Consumer products. Cookware and household appliances use their fair share of this raw material.
Transportation. Vehicles, including aeroplanes, cars and trucks, are manufactured with copper.
Industrial equipment. Machinery consumes millions of pounds of copper every year.
Copper stocks generally refer to companies that explore, develop, produce and sell copper all over the world.
Copper stocks for your watchlist
While Australia is one of the largest producers of copper, it is not alone in producing the precious metal. Copper stocks trade on international exchanges, including the New York (NYSE), London (LSE) and Toronto (TSX) stock exchanges, as well as the ASX. Here are list of copper stocks you can add to your watchlist:
Company summary
OZ Minerals Limited engages in the exploration, development, mining, and processing of mining projects in Australia. It primarily explores for copper, gold, silver, and nickel deposits. The company owns and operates the Prominent Hill mine located in South Australia; the Carrapateena project located in South Australia; the Carajás in the state of Pará in the North of Brazil; and the West Musgrave copper-nickel project located in the Musgrave Province, Western Australia. It also holds interests in Mt Woods and the Stuart Shelf in South Australia; and the CentroGold project in the state of Maranhão in northern Brazil. The company was incorporated in 1932 and is headquartered in Adelaide, Australia. As of May 2, 2023, OZ Minerals Limited operates as a subsidiary of BHP Lonsdale Investments Pty Ltd.
Sandfire Resources Limited, a mining company, engages in the exploration, evaluation, and development of mineral tenements and projects. It primarily explores for copper, gold, silver, lead, and zinc deposits. Sandfire Resources Limited was incorporated in 2003 and is based in West Perth, Australia.
Aeris Resources Limited, together with its subsidiaries, engages in the production, sale, and exploration of copper, zinc, gold, and silver in Australia. The company's primary operating assets include the Tritton Copper Operations located near the town of Nyngan in central New South Wales; and Cracow Gold Operations situated near the town of Theodore in Central Queensland. It also holds interests in the Jaguar mine located in Western Australia; Mt Colin mine situated in North-West Queensland; and Stockman project located in Victoria. The company was formerly known as Straits Resources Limited and changed its name to Aeris Resources Limited in December 2015. The company was incorporated in 2010 and is based in Brisbane, Australia.
Historical performance
Company summary
Hot Chili Limited operates as a mineral exploration company in Australia and Chile. The company explores for copper, gold, and molybdenum, as well as silver deposits. Its flagship property is the Cortadera Copper-Gold Project located along the Chilean coastal range, Chile. The company also holds option agreement to acquire 100% interest in the Cometa project in Chile. Hot Chili Limited was incorporated in 2008 and is based in Applecross, Australia.
Historical performance
Stock information
Market capitalization: $143334032
PEG ratio: 0
Company summary
Castillo Copper Limited engages in the exploration and examination of mineral properties in Australia and Zambia. It primarily explores for copper, cobalt, silver, gold, lead, and zinc deposits, as well as rare earth elements. The company was incorporated in 2009 and is based in West Perth, Australia.
Historical performance
Company summary
Copper Mountain Mining Corporation engages in the mining, exploration, and development of mineral properties in Canada. It explores for copper, gold, and silver deposits. The company holds 75% interests in the Copper Mountain mine comprising 135 crown-granted mineral claims, 145 located mineral claims, 14 mining leases, 12 fee simple properties, and seven cell claims that covers an area of approximately 6,354 hectares located to the south of Princeton, British Columbia. Copper Mountain Mining Corporation was incorporated in 2006 and is headquartered in Vancouver, Canada. As of June 20, 2023, Copper Mountain Mining Corporation operates as a subsidiary of Hudbay Minerals Inc.
Historical performance
Stock information
Market capitalization: $598128576
Dividend yield: 0%
Company summary
Redbank Copper Limited engages in the exploration, evaluation, and development of copper resources in Australia. Its flagship project is the Redbank Copper project located in the northeast of the Northern Territory. The company was formerly known as Redbank Mines Limited and changed its name to Redbank Copper Limited in 2009. Redbank Copper Limited was incorporated in 1993 and is based in Subiaco, Australia.
Historical performance
Stock information
Market capitalization: $17669232
PEG ratio: 0
Dividend yield: 0%
Company summary
Cyprium Metals Limited engages in the identifying, exploration, evaluation, and development of mineral properties in Australia. The company explores for copper, gold, and cobalt deposits. Its flagship project is the Nifty Copper mine located on the western edge of the Great Sandy Desert in the north-eastern Pilbara region, Western Australia. The company was incorporated in 1983 and is based in Subiaco, Australia.
Historical performance
Company summary
Heron Resources Limited engages in the exploration and development of metal deposits in Australia. The company explores for zinc, copper, lead, nickel, and gold deposits. It primarily focuses on the 100% owned Woodlawn zinc-copper project located to the southwest of Sydney, New South Wales. The company was incorporated in 1995 and is based in Sydney, Australia. As of May 20, 2022, Heron Resources Limited operates as a subsidiary of Develop Global Limited.
Historical performance
Stock information
Market capitalization: $19289926
PEG ratio: 0
Dividend yield: 0%
If you're looking at buying copper stocks, here are a few things to watch out for:
Pros
Multiple options to choose from
More control over your investment
Leave the market when you want
You might even get dividends
Cons
Stocks are more vulnerable to market fluctuations
Increase your risks to just owning the commodity itself
Buy copper ETFs
To date, there are no pure-play copper ETFs listed on the ASX, but there are some copper ETFs listed in the US. These ETFs include the following:
Global X Copper Miners ETF (COPX)
United States Copper Index Fund (CPER)
iPath Series B Bloomberg Copper Subindex Total Return ETN (JJC)
Pros
Immediate diversification into the asset class
Don't need to identify individual copper miners that will win in the sector
You can invest in the asset through its future prices without actually taking ownership of it.
In Australia, contracts for difference (CFDs) are most commonly used when it comes to trading commodities.
CFDs are derivative investment products that allow you to trade on the future prices of underlying assets such as commodities, stocks and indices.
By investing in copper CFDs, you're speculating on the price of the asset in the future. In other words, you're agreeing to pay today's prices for an asset that gets delivered sometime in the future.
If the price rises between now and the time when the CFD finishes, you'll either make or lose money depending on how the trade played out. For example if you think the price of copper will fall and trade against it, but instead the price rises, you'll lose your investment.
On the flip side, you can also bet against copper. If you think the price will drop, you can "short" the contract. This means they put in an order to sell the asset at today's prices for delivery in the future. Now, if prices drop between the time the short contract was purchased and the contract expiry date, the price difference will be the trader's profit for the trader.
However, this is a riskier way to gain exposure to the sector. It is not advised that beginners use CFDs.
Futures and other options work in a similar way. When it comes to future copper contracts, you're agreeing to buy an asset at a future set price. In other words, you're agreeing to pay today's prices for an asset that gets delivered sometime in the future. You can once again go long (expect the price to rise) or short (expect the price to fall) in the futures markets.
Pros
If you can read the market, you can gain solid yields from your investment
You can invest in a market that is falling
CFDs/futures contacts can be used to day trade
Cons
These assets are highly risky – add leverage and you can lose a lot of money quickly
You don't own underlying assets – you own futures contracts and are speculating on the price of copper
Compare CFD brokers to trade copper futures
Disclaimer: General information only. All forms of investments (and in particular, trading CFDs, commodities and forex) carry significant risk, including the risk of losing more than the invested amounts, market volatility and liquidity risks. Past performance is no guarantee of future results. Such activities are not suitable for most investors.
Copper has an expansive range of industrial and consumer applications – from factories and transmission lines to homes and electronics. And the recent push for electric vehicles (EVs) is likely to increase the demand for this essential metal.
Electric vehicles have 5 times more copper than traditional cars.
And this new driving technology will also require large amounts of copper to support its electric charging infrastructure. Copper’s strong ties to many sectors of the economy likely mean that the demand isn’t going anywhere.
Not only is demand expected to grow due to EVs, it also plays an important role in solar and wind energy systems. So regardless of what green energy initiative is implemented, it is likely that copper stocks will benefit.
Risks of investing in copper stocks
While copper is one of the most abundant metals on Earth, only a small portion is economically viable to extract at today’s prices using current technologies. So mining companies are vulnerable to copper price fluctuations, which are easily impacted by geopolitics.
For example, global copper prices fell to their 2-year low in 2019. It was collateral damage amid the escalating trade war between the US and China – a country that consumes over 50% of the world’s metal. So even though in 2023 there are a number of tailwinds for the sector, it can easily change.
An additional risk is that there are other practical substitutes for copper.
In some instances, manufacturers can use aluminium instead of copper. These include automobile radiators and optical fibre in telecommunications equipment. Plastics can also be used for pipes and plumbing fixtures instead of copper. As such, it could see a lower demand for copper, meaning the price of the commodity could fall.
Compare trading platforms
One of the simplest ways to invest in copper is with a domestic brokerage account in Australia, which allows you to buy stocks on the ASX. But if you want to invest in international copper stocks, you'll need an international brokerage account.
Use the table below to compare domestic brokerage accounts.
Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
Bottom line
Copper is involved in a lot of economic sectors. While copper's consumer and industrial applications keep it in demand, you’ll need to keep an eye on global trade wars.
Chile, China and Peru are the top 3 copper suppliers in the world.
You can find about 400 pounds of copper in the average single-family home.
In the last 5 years, copper ranged from approximately US$2 to US$3 per pound.
Important information: Powered by Finder.com.au. This information is general in nature and is no substitute for professional advice. It does not take into account your personal situation. This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for most investors. You do not own or have any interest in the underlying asset. Capital is at risk, including the risk of losing more than the amount originally put in, market volatility and liquidity risks. Past performance is no guarantee of future results. Tax on profits may apply. Consider the Product Disclosure Statement and Target Market Determination for the product on the provider's website. Consider your own circumstances, including whether you can afford to take the high risk of losing your money and possess the relevant experience and knowledge. We recommend that you obtain independent advice from a suitably licensed financial advisor before making any trades.
Kylie Purcell is the senior investments editor and analyst at Finder. She has completed a Certificate of Securities and Managed Investments (RG146) and specialises in investment products including online brokers, robo-advisors, stocks and ETFs.
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
