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Date : 11/11/2022

Why are ASX Copper Stocks surging since last week?

Copper prices have endured in recent months. Rising interest rates and China’s Zero COVID policy have been bad news for copper prices. However, ASX copper stock miners and explorers have scored several significant new discoveries in the last week.

Copper is a significant metal in the global economy and is essential in modern technologies. Despite its importance in modern technology, copper has a new benefit in combating the major modern-day challenge: climate change. The significance of ASX copper stocks has grown due to their importance in climate change. It could be utilised to decarbonise the atmosphere. As a result, copper will be essential in the modern world.

Some might think decarbonization is just another cost of fighting climate change or, at the very least, slowing its acceleration. But in actuality, decarbonization aims to do two things: cut down on carbon emissions and boost output.

Copper utilisation will be beneficial in the transition to renewable energy sources. The fastest-growing market for copper is in applications related to renewable energy technologies, such as wind turbines, solar panels, electric vehicle (EV) batteries, and large-scale energy storage.

What’s “Dr Copper”?

Dr Copper is industry jargon for describing changes in the copper price. Dr Copper is a nickname for the copper price, a barometer of the state of the world economy.

So, why are ASX copper stocks surging since last week? And what does it mean for your investments?

The price of copper may be affected by the overall health of the global economy. This is due to its widespread applications throughout the economy, which range from the generation and transmission of energy to construction materials, industrial equipment, and even consumer gadgets.

The metal has shown itself to be an excellent indicator that it is now often referred to as “Doctor Copper.” Rising copper prices in the market indicate a thriving economy, whereas falling prices signal economic disaster.

Here we have a list of ASX Copper Stocks that are showing significant growth.

Based on our growth analysis on ASX Copper Stocks, here are the top copper stocks ASX listed that we recommend:

  1. BHP Group Ltd (ASX: BHP)
  2. Rio Tinto Limited (ASX: RIO)

BHP Group Ltd (ASX: BHP)

Australian-based natural-resources company BHP Group Ltd (ASX: BHP) is a significant player in the global market. They extract minerals and ores such as copper, iron ore, nickel, potash, and metallurgical coal. Additionally, it was a significant producer of oil and natural gas. However, in 2022, it merged with Woodside Petroleum (ASX: WPL).

BHP operates several copper mines in Chile and a single mine in Australia. In 2021, the corporation’s activities resulted in the production of 1.6 million metric tons of copper. It is investing heavily to boost copper production to meet the growing demand.

BHP extended its Spence copper mine in the Chilean desert through the end of the year 2020. Within a decade, the project will raise annual production by 185,000 metric tons, adding 50 years to the mine’s lifetime. To meet the rising demand for copper over the following years, BHP has entered into several long-term exploration agreements and locked in potential growth opportunities at an early stage.

The company’s dividends are expected to rise due to increased copper production. At least half of BHP’s cash flow will be allocated to dividend payments.


Rio Tinto Limited (ASX: RIO)

Rio Tinto Limited (ASX: RIO) is another one of the copper stocks ASX listed that we have our eye on. Rio Tinto is more than one of the best Australian copper stocks to buy. The organisation is well-versed in several areas of the resource industry and has a wide range of business operations. The firm mines and processes various materials, including aluminium, diamonds, copper, gold, iron ore, uranium, and minerals.

As the owner of one of the world’s most well-known copper and gold mines, Rio Tinto is a vital ASX copper stock. It is located in Oyu Tolgoi, Mongolia.

At the start of 2022, Rio Tinto proposed to buy Turquoise Hill for $2.7 billion in cash. Let’s pretend the two corporations manage to reach an agreement. Rio Tinto will profit from total control over subsurface project development in such circumstances. Since this will lead to more output, it will benefit the business. By the year 2030, it is anticipated that Oyu Tolgoi will be ranked among the top five copper mines in the world, with Oyu Tolgoi taking the fourth spot on the list.

Rio Tinto is actively working on many copper-related expansion projects, including Resolution Copper in the United States and Winu in Australia. Founded in 2020, the Winu copper and gold discovery has the makings of a significant mining operation.

With rising copper production, Rio Tinto should be able to continue its hefty dividend payments for it’s ASX copper stocks in the foreseeable future. The company plans to pay dividends to its stockholders at a rate of between 40% and 60% of its annual earnings.


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