Investing in Copper Stocks
As the world transitions to cleaner sources of energy, copper is set to play an important role. But which companies are responsible for producing the red metal? In this article, we will examine prospect of investing in copper shares and highlight 3 top copper stocks to watch.
The information in this article is provided for educational purposes only and does not constitute financial advice. Consult a financial advisor before making investment decisions.
Investing in Copper Shares
Copper is a key material in construction and transport infrastructure, meaning that its demand - and, therefore, price – is positively correlated with global economic growth. In other words, when the global economy is growing, demand for copper also tends to grow.
However, whilst economic growth is likely to continue playing an important role in determining copper demand, the ongoing energy transition could also provide a tailwind for copper demand in the coming years.
Thanks to its highly efficient conductivity, copper is likely to play a key role in electrification and is an important component in renewable energy systems.
In its Global Critical Minerals Outlook, the International Energy Agency (IEA) predicts that demand will significantly outstrip supply in the coming decade, with supply forecast to fall 30% short by 2035.
Factors to Bear in Mind
Nevertheless, for those considering copper mining stocks, it’s important to remember that mining companies tend to be very cyclical.
A growing global economy helps fuel demand for commodities such as copper; but mining shares are often some of the first to sell-off during a downturn.
Furthermore, the same report from the IEA as above states that China accounts for almost 60% of global consumption of refined copper in 2024. To put that figure in context, the second-largest source of demand was the US, which accounted for 6%.
Consequently, any change in China’s copper demand can have an outsized impact on total global demand and, consequently, prices.
Top Copper Stocks
In the following sections, we’ll take a look at three examples of top copper stocks.
Freeport-McMoRan
Freeport-McMoRan is a US mining company which is one of the largest copper producers in the world.
Whilst the majority of Freeport’s revenue is generated by copper, which accounted for 74% in 2024, precious metal gold also contributes a significant amount, accounting for 17% in the same year. Besides these two metals, Freeport also produces molybdenum.
The miner’s portfolio of assets includes the Grasberg minerals district in Indonesia, which contains one of the world’s largest deposits of copper and gold.
In the year ended 31 December 2024, total copper production remained relatively flat at 4.2 billion pounds for the third-year running. Freeport’s total revenue rose 11% to $25.5 billion, whilst operating profit rose 10% to $6.9 billion. Past performance is not a reliable indicator of future results.
The copper miner pays a dividend and – at the time of writing, 15 December 2025 – currently has a modest dividend yield of 1.3%. Although it should be noted that future payouts are never guaranteed.
Southern Copper
As the name suggests, Southern Copper is primarily a copper mining company, with its main operations taking place in Mexico and Peru. The company claims to have the largest copper reserves in the world.
In 2024, copper accounted for around 77% of total revenue, with production of the red metal increasing by 6.9% to 2.1 billion pounds. Its next highest revenue driver is molybdenum, accounting for 11%.
In the year ended 31 December 2024, net sales rose 16% to $11.4 billion, whilst operating income climbed 32% to $5.6 billion. Past performance is not a reliable indicator of future results.
In the same year, the copper miner reduced its cash dividend per share by 90% to $2.10.
However, it also introduced stock (scrip) dividends as part of its capital returns programme, which entails distributing dividends in the form of additional company shares. In 2024, shareholders received an additional 0.0073 shares for every share already held.
BHP
Whereas the previous two companies we’ve highlighted are primarily copper producers, BHP is a slightly more diverse mining company.
It is the largest mining company in the world in terms of market capitalisation, and, in 2024, it was the top producer of copper in the world.
In the year ended 30 June 2025, the mining giant produced 2,017kt (4.4 billion pounds) of copper. However, despite its copper production exceeding that of the other two copper stocks we’ve examined, the metal accounted for less than half of total revenue.
The table below shows the percentage of total revenue generated by each of the company’s different segments.
Source: BHP – Annual Report 2025 (Year Ending 30 June 2025).
As we can see, the majority of revenue comes from copper and iron ore, with both accounting for roughly the same proportion. Consequently, for those looking strictly for exposure to copper, BHP might not be of interest.
The miner’s revenue of $51.23 billion represented a decrease of 8% from the previous year. However, lower costs helped profit from operations increase 11% to $19.46 billion. Past performance is not a reliable indicator of future results.
In terms of dividends, BHP has paid a dividend every year for more than 40 years. However, the payout itself can vary depending on the company’s performance and market conditions.
For example, last year, BHP cut its annual dividend by 18%; this was the third consecutive year in which the company has slashed its payouts. Its dividend yield is currently around 3.9%.
Copper ETF
For investors who want exposure to copper mining companies, but don’t want to pick individual copper mining stocks, a copper ETF (Exchange-Traded Fund) could be an alternative option.
Copper ETFs provide exposure to copper by investing in copper mining companies, futures contracts or the physical commodity itself. One example of a copper ETF is the Global X Copper Miners ETF.
This ETF holds shares in around 40 copper stocks from around the world, including the three examined in this article. Its top five holdings at the time of writing are:
- KGHM Polska Miedz
- Lundin Mining
- Boliden
- Freeport-McMoRan
- Hudbay Minerals
Source: Global X Copper Miners UCITS ETF – Top Holdings. Date Captured 15 December 2025.
How to Invest in Copper Stocks
In order to buy copper mining stocks, you’ll need to open an investing account with a brokerage such as Admirals.
- Register for an investing account or log in to an existing one.
- Open your trading platform and search for a stock.
- Create a new order and enter the number of shares you wish to purchase, as well as stop-loss and take-profit levels.
- Send your order to the market
Other Articles You Might Be Interested In:
Frequently Asked Questions
Are there copper ETFs?
Yes, there are a number of ETFs which provide exposure to copper. An example of such a copper ETF is the Global X Copper Miners ETF.
What are the largest copper mining companies?
In terms of production, the five largest copper mining companies in 2024 were, in descending order: BHP, Codelco, Freeport-McMoRan, Glencore and Southern Copper.
Are copper stocks a good investment?
This depends on the investor in question and their investment goals. For those who are bullish about the future trajectory of copper prices, copper stocks offer exposure to the metal without investing in the physical commodity itself. However, it’s important to bear in mind that mining companies are very cyclical businesses, whose share prices can suffer during a downturn.
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:
- This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
- Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
- With view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for prevention and management of conflicts of interest.
- The Analysis is prepared by an analyst (hereinafter “Author”). The Author Roberto Rivero is a contractor for Admirals. This content is a marketing communication and does not constitute independent financial research.
- Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.
- Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
- Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.
