Investors may want to pay close attention to copper stocks, such as CopperCorp Resources Inc. (TSXV: CPER) (OTCQB: CPCPF), Freeport-McMoRan (NYSE: FCX), Southern Copper Corporation (NYSE: SCCO), Teck Resources Ltd. (NYSE: TECK), and Turquoise Hill Resources (NYSE: TRQ). After all, copper is an essential metal needed in EVs for the motors, batteries, inverters, and wires. According to Zacks, “Usage of copper in EVs is up to 4 times more than in the conventional cars. Per the Copper Development Association Inc., traditional cars have 18-49 pounds of copper, hybrid EVs contain approximately 85 pounds and plug-in hybrid EVs use 132 pounds. While battery BEVs contain 183 pounds, a hybrid electric bus and a battery electric bus contain 196 and 814 pounds of copper, respectively.” In addition, according to Goldman Sachs, copper demand could increase by up to 600% through 2030 with the electric vehicle and renewable markets exploding.
Look at CopperCorp Resources Inc. (TSXV: CPER) (OTCQB: CPCPF), For Example
CopperCorp Resources Inc. just announced preliminary assay results from its first 4 drill holes (holes AP022, AP023, AP024 and AP025) from the Company’s ongoing diamond drilling program from the Alpine prospect Stellar zone, Alpine prospect at the AMC Project in western Tasmania, Australia.
- Copper mineralization intersected in all four holes. Best intercepts include:
- 43.0m @ 0.62% Cu and 257ppm Co from 135.0m; and
- 31.0m @ 0.25% Cu from 225.0m.
- 17.7 m @ 0.54% Cu and 293ppm Co from 148.3m.
- 42.1m @ 0.60% Cu and 252ppm Co from 55.9m; and
- 6.0m @ 0.96% Cu and 283ppm Co from 133.0m; and
- 43.0m @ 0.33% Cu and 174ppm Co from 157.0m.
- 18.3m @ 0.59% Cu and 254ppm Co from 147.0m.
Received results confirm continuity of copper grades from historical drill holes at the Stellar zone that intersected significant Iron-Oxide-Copper-Gold (IOCG)-style copper mineralization over a strike length of 700m and to depths of 300m below surface (open).
The drilling program at the Stellar zone is ongoing with assays from a further 7 drill holes awaited.
Stephen Swatton, President and CEO of CopperCorp, stated, “The Company is encouraged by these first drill assay results received from the Stellar zone at Alpine which is the first exploration drilling to be conducted in the area in 14 years. The results are consistent with the historical drilling and, importantly, confirm continuity of mineralization between historical holes. Mineralization at the Stellar zone is open along strike and at depth and results from recent geophysical and surface geochemical work has confirmed potential for a large-scale Iron-Oxide-Copper-Gold (IOCG) system at Alpine which the Company plans to continue testing as recently announced with the Alpine Phase 1 drilling program being expanded to 10,000m. The results further highlight the prospectivity of the Arthur Metamorphic Complex for IOCG style mineralization over which the Company has a dominant land holding.”
Other related developments from around the markets include:
Freeport-McMoRan reported first-quarter 2022 net income attributable to common stock of $1.5 billion, $1.04 per share, and adjusted net income attributable to common stock of $1.6 billion, $1.07 per share, after excluding net charges primarily associated with the settlement of an administrative fine and an adjustment to prior-period export duties at PT-FI totaling $38 million, $0.03 per share. Richard C. Adkerson, Chairman and Chief Executive Officer, said, "The strong operational and financial results we are reporting today reflect our long-term, ongoing focus on solid execution of our plans and the achievements of our committed global team. As a premier global leader in producing copper responsibly, with large-scale, long-lived reserves and an attractive portfolio of organic growth opportunities, we are strongly positioned to benefit from increasing global copper demand for infrastructure development and accelerating clean energy investments. We have created a durable foundation for long-term success supported by a portfolio of world class copper assets, an experienced and highly motivated global team and a strong financial base. Freeport is focused on delivering value to all our stakeholders and approaching the future with confidence and excitement."
Southern Copper Corporation recently posted fourth quarter earnings. 2021 marked another important year in Southern Copper’s history. This year, net sales, net income, adjusted EBITDA and cash from operations hit record highs. 4Q21 net sales were $2,823.7 million, which represented a 20.1% increase with regard to 4Q20’s figure. Growth was primarily fueled by higher metal prices for our main products, which was partially offset by a decrease in the sales volume at our Peruvian operations due to bi-annual maintenance at the Ilo smelter. Metal prices increased for copper (+35.4%, LME); molybdenum (+107.5%); and zinc (+28.6%). 2021 net sales hit a record high of $10,934.1 million, which represented an increase of 36.9% over the figure reported in 2020. This growth was mainly driven by higher market metal prices for all our main products. Metal prices increased for copper (+51.1%, LME); molybdenum (+81.0%); zinc (+32.0%); and silver (+22.1%). The cooper sales volume decreased 11% for the year due to a drop in sales of copper supplied from third parties and shipment delays; the latter was attributable to the COVID 19 pandemic. Net income in 4Q21 was $833.0 million, which represented a 41.1% increase with regard to the $590.2 million registered in 4Q20. The net income margin in 4Q21 was 29.5%, versus 25.1% in 4Q20.
Teck Resources Ltd. announced that its Board of Directors has declared an eligible dividend of $0.125 per share on its outstanding Class A common shares and Class B subordinate voting shares, to be paid on June 30, 2022 to shareholders of record at the close of business on June 15, 2022.
Turquoise Hill Resources announced first quarter 2022 production and provided an Oyu Tolgoi LLC mine and corporate update. As planned, Q1 2022 copper and gold production from the open pit and underground was lower vs Q1 2021 due to lower copper and gold head grade. Copper production of 30.3 thousand tonnes of copper in concentrate, a decrease of 33% vs Q1 2021 and a decrease of 22% vs Q4 2021. Gold production of 59 thousand ounces of gold in concentrate, a decrease of 60% vs Q1 2021 and a decrease of 25% vs Q4 2021. Copper production guidance for 2022 remains within the range of 110,000 to 150,000 tonnes. Gold production guidance has been revised from a range of 115,000 – 165,000 ounces to 135,000 – 165,000 ounces and is trending toward the higher end of the range.
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