Hindustan Copper Rallies on Record Copper Prices and Strong Earnings

Copper prices have hit an all-time high on the London Metal Exchange, driven by a combination of factors including disruptions in output at key mines and a drop in Chile's copper shipments. Benchmark 3-month copper prices reached $14,617 a tonne on September 8, up from $13,000 a year and a half ago.

Traders expect the US to broaden its Section 232 investigation to include refined copper imports, which could lead to a 15% duty from January 2027, up to 30% by 2028. This has caused a record US import of 225,094 MTs refined copper in July, leaving LME and SGM stocks depleted.

Hindustan Copper's shares rallied 4% on September 8, driven by the company's strong Q1 FY27 earnings and the record copper prices. The company's revenue from operations jumped 81% year-on-year to Rs. 936.5 crore, while consolidated net profit surged over 160% to Rs. 352 crore.

Hindustan Copper has a capacity expansion plan worth Rs. 7,000 crore over the next five to six years, aimed at exploration, mine revivals, and strategic partnerships. The company targets scaling production capacity from 4.21 MTPA currently to 12.20 MTPA by 2029-30.