Copper Miners Retain Value Despite Record Prices

Copper mining equities continue to attract attention despite record-high copper prices. According to Scotiabank Global Equity Research, the market fundamentals are expected to support the metal through at least 2027.

The bank notes that copper prices have reached new heights while the companies' shares experience sharp daily fluctuations due to broader market concerns over artificial intelligence, the Middle East conflict, and global interest rates.

Copper miners currently price in an average implied copper price of $6.85 per pound, which is only a 2% premium to spot copper near $6.70, significantly below the 5% year-to-date average and the 17% three-year average premium.

The bank identifies Ero Copper, First Quantum Minerals, Lundin Mining, Grupo Mexico, Hudbay Minerals, and Capstone Copper as having relatively low implied copper prices, while Antofagasta, Freeport-McMoRan, Southern Copper, Anglo American, and Ivanhoe Mines have the highest.