Copper Price Rally Boosts First Quantum and Lundin Mining but Risks Remain

Copper demand is driving the success of two major mining companies in the S&P/TSX Composite Materials Sector: First Quantum Minerals (TSX:FM) and Lundin Mining (TSX:LUN). In the second quarter of 2026, copper made up 88% of Lundin's revenue, while nearly all of their revenue depends on it for both companies.

The current price of copper is around US$6.70 per pound, a 42% increase from last year, and its steady demand from power grids, AI data centres, and defence spending has contributed to this rise. However, the International Copper Study Group (ICSG) cut its forecast for growth in global refined copper use to 1.6% for 2026.

First Quantum produced 100,487 tonnes of copper in Q2 2026, mostly from its Kansanshi and Sentinel mines in Zambia, while Lundin Mining produced 76,877 tonnes at a consolidated cash cost of US$2.11/lb. First Quantum's debt amplifies both gains and losses, and the future of Cobre Panamá still depends on the Panamanian government.