10 Best Copper Stocks in Canada 2022: Invest in Copper Miners

Canada is a country that is rich in natural resources. As a result, the Toronto Stock Exchange is full of great commodity companies to invest in.

Copper often goes overlooked as an investment and is overshadowed by other precious metals like gold and silver.

The Canadian copper industry is set to boom in the future. Copper is a crucial component in technology like computers, smartphones, and even electric vehicles.

When evaluating copper stocks, look for key indicators like revenue growth, earnings per share (EPS), dividend growth rate, price to earnings (P/E), and the overall sustainability of its business.

In this article, we will review 10 of the best copper stocks in Canada for 2022.

What Are Copper Stocks?

Copper stocks in Canada provide investors with an opportunity to invest in companies that operate in the copper industry.

These companies can include copper miners and copper refiners, that operate both in Canada and around the world.

While copper does not have the same allure as gold in terms of physical value, it has more utility in the manufacturing and production of goods and technology.

Best Copper Stocks in Canada

Here are the 10 best Canadian copper stocks we will be reviewing in this article:

  • First Quantum Minerals Ltd. (TSE:FM)
  • Teck Resources (TSE:TECK.B)
  • Ivanhoe Mines Ltd  (TSE:IVN)
  • Lundin Mining Corp. (TSE:LUN)
  • Hudbay Minerals, Inc. (TSE:HBM)
  • Capstone Mining Corp (TSE:CS)
  • Solaris Resources Ltd (TSE:SLS)
  • Copper Mountain Mining Corp (TSE:CMMC)
  • Aura Minerals, Inc (TSE:ORA)
  • Taseko Mines Ltd. (TSE:TKO)

All of these facts and figures are as of June 2022.

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1. First Quantum Minerals Ltd.

  • Symbol: FM.TO
  • 52-Week Trading Range: $20.67-$45.38
  • Dividend Yield: 0.027%
  • PE Ratio: 19.18
  • Market Cap: $25.91 billion

First Quantum Minerals was established in 1983 and is headquartered out of Toronto, Ontario. It trades on the Toronto Stock Exchange.

It is the world’s sixth-largest copper producer, and one of the largest in Canada. The company has operations in nine different countries across Australia, Africa, Europe, and South America.

First Quantum pays a minimal dividend yield and its P/E ratio is 19.18.

As of 2022, First Quantum Minerals has a five-year plan to reach 1 million tonnes of copper produced annually.

2. Teck Resources Ltd.

  • Symbol: TECK.B.TO
  • 52-Week Trading Range: $24.84-$57.50
  • Dividend Yield: 0.87%
  • PE Ratio: 7.54
  • Market Cap: $24.66 billion

Teck Resources has established roots in Vancouver, BC as early as 1906. It trades on the Toronto Stock Exchange and is a component of the S&P/TSX 60.

Teck Resources operates in several different industries. Copper makes up just 23% of its portfolio, which also includes energy, zinc, and steelmaking coal.

Teck Resources has an annualized dividend yield of 0.87% and a relatively low P/E Ratio of 7.54.

Teck is a top 20 copper producer in the world and has plans to increase the copper allocation in its portfolio to as much as 34% in the coming years.

Related: Best Gold Stocks in Canada.

3. Ivanhoe Mines Ltd

  • Symbol: IVN.TO
  • 52-Week Trading Range: $7.69-$13.15
  • Dividend Yield: N/A
  • PE Ratio: 176.92
  • Market Cap: $12.86 billion

Ivanhoe Mines is based in Vancouver, BC, and trades on the Toronto Stock Exchange.

Its Kamoa-Kakula site in the Democratic Republic of Congo is on track to become the world’s third largest copper project by 2024.

Kamoa-Kakula is one of Ivanhoe’s three main projects in the South of Africa.

Ivanhoe is also involved in mining other resources like zinc and platinum.

4. Lundin Mining Corp.

  • Symbol: LUN.TO
  • 52-Week Trading Range: $8.56-$14.00
  • Dividend Yield: 3.18%
  • PE Ratio: 6.67
  • Market Cap: $8.80 billion

Lundin Mining was founded in 1994 and is headquartered out of Toronto, Ontario. The stock trades on the Toronto Stock Exchange.

The company operates six different copper mining projects across the US, Sweden, Portugal, Chile, Brazil, and Argentina.

Copper consists of 69% of Lundin’s resource portfolio. The other parts are made up of gold, nickel, zing, and a few other precious metals.

Lundin is projected to produce between 258,000 and 282,000 tonnes of copper annually.

5. Hudbay Minerals Ltd

  • Symbol: HBM.TO
  • 52-Week Trading Range: $6.48-$11.17
  • Dividend Yield: 0.27%
  • PE Ratio: 7.47
  • Market Cap: $1.99 billion

Hudbay Minerals was originally founded in 1927 and is headquartered in Toronto, Ontario. Hudbay Minerals is dual-listed on the Toronto Stock Exchange and the New York Stock Exchange.

Hudbay Minerals has several projects in operations and several more in exploration across the United States, Canada, and Peru.

The company has 60% of its revenues and 72% of its reserves in copper. Hudbay is also involved in gold, silver, zinc, and molybdenum.

Related: Best Canadian Penny Stocks.

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10 Best Copper Stocks in Canada

6. Capstone Mining Inc.

  • Symbol: CS.TO
  • 52-Week Trading Range: $4.26-$7.79
  • Dividend Yield: N/A
  • PE Ratio: 10.45
  • Market Cap: $3.50 billion

Capstone Mining was established in 1987 and is headquartered out of Vancouver, British Columbia. The stock trades on the Toronto Stock Exchange.

Capstone has five project locations with three of them in Chile, one in the US, and one in Mexico.

In March of 2022, Capstone Mining combined with Mantos Copper. Capstone’s stock remains under the same ticker symbol.

7. Solaris Resources Ltd

  • Symbol: SLS.TO
  • 52-Week Trading Range: $10.16-$17.17
  • Dividend Yield: N/A
  • PE Ratio: N/A
  • Market Cap: $1.30 billion

Solaris Resources is a relatively new company having been established in 2018. It is headquartered in Vancouver, British Columbia.

The company operates five different precious metals project locations across Mexico, Ecuador, Peru, and Chile.

In addition to copper, Solaris is also in the gold mining industry.

Solaris is managed by the Augusta Group which also owns Augusta Gold Corp, Ventana Gold Corp, and Equinox Gold.

8. Copper Mountain Mining Corp

  • Symbol: CMMC.TO
  • 52-Week Trading Range: $2.02-$4.38
  • Dividend Yield: N/A
  • PE Ratio: 10.04
  • Market Cap: $602 million

The Copper Mountain Mining Corp was founded in 2006 and is headquartered out of Vancouver, British Columbia. It is dual-listed on the Toronto Stock Exchange and the Australian Stock Exchange.

The company is named after its flagship project at the Copper Mountain Mine which is located about 300 km east of Vancouver.

Copper Mountain Mining Corp also operates the Eva Copper Project which is an open-pit mine in Queensland, Australia.

Its stock was recently included in the new S&P/TSX Battery Metals Index.

Related: Best Metaverse Stocks in Canada.

9. Aura Minerals Ltd

  • Symbol: ORA.TO
  • 52-Week Trading Range: $8.39-$17.50
  • Dividend Yield: 4.01%
  • PE Ratio: 9.54
  • Market Cap: $819 million

Aura Minerals was established in 1946 and is headquartered out of the British Virgin Islands but trades on the Toronto Stock Exchange.

It is a well-diversified minerals company with projects across North America and South America.

In 2021, 76% of its revenues were from gold and 24% were from copper production.

Aura has consistently paid one of the highest dividend yields in the copper production industry.

10. Taseko Mines Ltd

  • Symbol: TKO.TO
  • 52-Week Trading Range: $1.71-$3.00
  • Dividend Yield: N/A
  • PE Ratio: 10.97
  • Market Cap: $584 million

Taseko Mines was founded in 1999 and is headquartered in Vancouver, British Columbia. The stock is dual-listed on the Toronto Stock Exchange and the NYSE American exchange.

The company operates four different copper projects in British Columbia and one in Arizona.

Taseko currently has more than 15 billion pounds of copper in its reserves, more than larger peers like Lundin, Hudbay, and Capstone.

Its Gibraltar Mine is the second largest open-pit copper mine in Canada.

How To Buy Copper Stocks in Canada in 2022

Here are a couple of the best discount brokerages to buy copper stocks for Canadian investors.

Wealthsimple Trade

Wealthsimple Trade is Canadian owned by the Power Corporation of Canada and has been around since 2014.

It is a no-commission trading platform that allows Canadian investors to buy stocks and ETFs with no trading fees.

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Questrade

Questrade is another low-cost brokerage alternative for Canadian investors that has been around since 1999. It is currently Canada’s largest discount brokerage.

This trading platform offers trading with stock trading fees as low as $0.01 per share with a minimum of $4.95. It also offers free ETF purchases and $4.95 fees for selling those ETFs.

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QTrade

QTrade is a discount brokerage that is based out of Vancouver, BC.

This platform offers lower trading fees than the big banks, with stock trading fees of $8.75 per trade. QTrade has a select list of ETFs that are free to trade on the platform.

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Are Copper Stocks a Good Investment?

The copper industry is forecasted to grow rapidly over the next few decades. This is due to copper being a core component of computer chips, as well as the manufacturing of technology.

Other industries that use copper include the electric vehicle industry and smartphones.

Copper’s supply is also falling as a lack of new copper mines being discovered has forced the price of the precious metal to rise.

Downsides and Risks of Copper Stocks

Investing in stocks that rely on a single output is always a bit riskier than a well-diversified business.

Copper does not have the same stability as gold or silver, although its use cases are far more diverse in terms of production and manufacturing. Economic downturns that result in lower manufacturing output may negatively impact the price of copper

Compared To other precious metals and commodities, copper stocks do not pay a great dividend.

Investing in Copper ETFs as an Alternative

If you can’t decide on which copper stock to invest in, there are copper industry ETFs that hold a basket of copper companies.

Horizons just launched Canada’s first Copper ETF in March of 2022 under the ticker symbol TSE:COPP.

You can also buy copper bullion, but it’s not as popular of a way to invest in the metal. Most investors prefer to hold copper stocks or ETFs instead.

Finally, you can invest in copper futures contracts similar to other commodities like gold or oil.

Copper Stocks FAQs

What is the best copper stock in Canada?

There are plenty of great Canadian copper stocks on the TSX to invest in. In terms of great business performance, revenue growth, and dividend yield, Teck Resources, and Lundin Mining stand out as two of the better copper stocks to own.

Who is the largest copper producer in Canada?

Teck Resources and First Quantum Minerals are at the top of the list of Canadian copper producers. These are also two of the best copper stocks for Canadian investors to own.

Is there an ETF for copper?

Yes, there is a new Horizons ETF for copper stocks and it trades under the ticker symbol COPP on the TSX. Not only is this the best Canadian copper ETF, but it is also the only one right now. There is plenty of US-domiciled copper ETFs to own as well.

What is the price of copper?

As of June 2022, the price of copper for the July 2022 futures contract is $4.44.

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Author

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Enoch Omololu

Enoch Omololu is a personal finance expert and a veterinarian. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. He also has an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch has a passion for helping others win with their personal finances and has been writing about money matters for over a decade. He has been featured or quoted in The Globe and Mail, Winnipeg Free Press, Wealthsimple, Financial Post, Toronto Star, CTV News, Canadian Securities Exchange, Credit Canada, National Post, CIBC, and many other personal finance publications.

His top investment tools include Wealthsimple and Questrade. He earns cash back on purchases using KOHO, monitors his credit score for free using Borrowell, and earns interest on savings through EQ Bank.

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