Copper Giants Down Under: Unveiling Australia's Top 5 ASX Copper Stocks

Copper initially performed well after 2020's COVID-19 lockdowns, hitting an all-time high of US$10,729 per tonne in 2022. However, the red metal fell as low as US$7,000 when China implemented fresh restrictions partway through the year.

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The country finally began to open back up last December, and copper was able to break back through the US$9,400 mark by mid-January. However, prices have been volatile in 2023, plunging to a year-to-date low of just under US$8,000 in May. For most of the third quarter of the year, copper prices remained largely rangebound between US$8,200 and US$8,700. After a brief dip below the US$8,000 level in early October, copper prices were trading at US$8,252 as of November 22.

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Despite copper's recent setbacks, many market watchers have a positive long-term outlook for the metal. With few new mines poised to come online and demand from the energy transition set to grow, a future breakout could be coming.

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Australian investors looking for exposure to these trends have plenty of options when it comes to stocks. As the eighth top copper-producing country, the nation is home to many ASX-listed companies exploring and mining for the base metal. Read on to learn more about the top five Australian copper companies on the ASX by market cap. All market cap and share price information was obtained on November 22, 2023, using TradingView's stock screener.

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1. BHP (ASX:BHP)

BHP is a global copper producer with operating copper mines in Australia and Chile, as well as a copper project in the US. In addition to its copper operations, BHP mines iron ore, nickel, metallurgical coal and potash.

The company’s Australian copper mine is the massive Olympic Dam operation in South Australia, which also produces gold and uranium as by-products. In Chile, the company has the 57.5 percent owned Escondida mine — the world’s largest copper producer — and the wholly owned Pampa Norte operations.

In August 2022, BHP made an unsolicited offer to acquire OZ Minerals for AU$25 per share. OZ rejected that offer, but BHP's next proposal of AU$28.25 per share was supported by OZ, and BHP subsequently acquired 100 percent of the company through a scheme implementation deed that closed in May of this year.

"Bringing together the copper assets from OZ Minerals with OIympic Dam will create a Tier 1 copper province in South Australia," BHP states in the report for its 2023 fiscal year. In the document, the company outlines guidance of 310,000 to 340,000 tonnes of copper for its 2024 fiscal year.

BHP (ASX: BHP) Overview:

?? - Market Cap: BHP Group Limited boasts a substantial market capitalization of AU$224.92 billion.

?? - Current Share Price: As of the latest data, BHP's share price stands at AU$44.350.

?Business Profile:

?? - BHP is a diversified natural resources company with a global presence.

?? - Principal Business Lines:

???? - Mineral Exploration and Production: BHP's core assets include copper, iron ore, nickel, metallurgical coal, and potash.

???? - Copper Operations: BHP operates copper mines in Australia and Chile, along with a copper project in the US.

???? - Olympic Dam: The massive Olympic Dam operation in South Australia is BHP's Australian copper mine. It not only produces copper but also yields gold and uranium as valuable by-products.

???? - Escondida Mine: BHP owns a 57.5% stake in the Escondida mine, which holds the distinction of being the world's largest copper producer.

???? - Pampa Norte Operations: BHP also fully owns the Pampa Norte operations.

Strategic Moves:

?? - OZ Minerals Acquisition Attempt:

???? - In August 2022, BHP made an unsolicited offer to acquire OZ Minerals at AU$25 per share.

???? - OZ rejected the initial offer, but BHP persisted with a revised proposal of AU$28.25 per share.

???? - Ultimately, BHP successfully acquired 100% of OZ Minerals through a scheme implementation deed that concluded in May of this year.

Copper Outlook:

?? - BHP's strategic vision involves consolidating copper assets.

?? - The merger of OZ Minerals' copper assets with Olympic Dam is expected to create a Tier 1 copper province in South Australia.

?? - For its fiscal year 2024, BHP provides guidance of producing 310,000 to 340,000 tonnes of copper.

In summary, BHP's diversified portfolio, strong market position, and strategic acquisitions make it an intriguing investment prospect.

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Figure 1．Weekly Price Chart.

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2. Sandfire Resources (ASX:SFR)

Company Profile

Sandfire Resources has multiple copper mines. Its MATSA copper operations are in Spain, while its DeGrussa copper-gold operations are in Western Australia and its Motheo copper mine is in Botswana. The company also has multiple projects in the development and study phases.

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Sandfire has been winding down output at DeGrussa, most recently processing oxide stockpiles to produce copper and gold. However, as the stockpiles became increasingly low margin and the economics worsened, the company decided to transition the site to care and maintenance. The mine produced 27,502 tonnes of copper in Sandfire's 2023 fiscal year, with only 1,457 tonnes of that coming in Q4.

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Sandfire acquired the MATSA mining complex in February 2022 for US$1.87 billion, and it has become a major producer for the company, outputting 55,737 tonnes of contained copper in the 2023 fiscal year.

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In August, Sandfire announced the opening of its Botswana-based Motheo copper mine, which had been in development since 2020. As Motheo ramps up, the company is focused on expanding production; it ultimately is aiming to produce 50,000 tonnes of contained copper per year by 2025.

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In its 2023 fiscal year, Sandfire reported production of 84,056 tonnes of contained copper. The company anticipates combined production from MATSA and Motheo to fall between 110,000 to 120,000 tonnes in its 2024 fiscal year.

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Figure 2.Weekly Price Chart.

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Company Profile:

?? - Market Cap: Sandfire Resources Limited currently boasts a market capitalization of approximately AU$3.994 billion1.

?? - Current Share Price: As of the latest data, Sandfire's share price stands at AU$8.7401.

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Business Overview:

?? - Copper Mines:

???? - MATSA Copper Operations (Spain): Sandfire operates copper mines in Spain under the MATSA banner.

???? - DeGrussa Copper-Gold Operations (Western Australia): The DeGrussa mine, located in Western Australia, has been a significant contributor to Sandfire's production.

???? - Motheo Copper Mine (Botswana): Sandfire's Motheo mine, situated in Botswana, has recently commenced operations after being in development since 2020.

?? - Projects in Development and Study Phases: Sandfire is actively involved in multiple projects beyond its existing mines.

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DeGrussa Mine Transition:

?? - Output Winding Down: Sandfire has been winding down output at the DeGrussa mine.

?? - Processing Oxide Stockpiles: The company has been processing oxide stockpiles at DeGrussa to extract copper and gold.

?? - Transition to Care and Maintenance: Due to low margins and unfavorable economics, Sandfire decided to transition the DeGrussa site to care and maintenance.

?? - Production Figures: In the 2023 fiscal year, DeGrussa produced 27,502 tonnes of copper, with only 1,457 tonnes of that coming in Q41.

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MATSA Mining Complex Acquisition:

?? - Strategic Move: Sandfire acquired the MATSA mining complex in February 2022 for US$1.87 billion.

?? - Significant Producer: MATSA has become a major producer for Sandfire, outputting 55,737 tonnes of contained copper in the 2023 fiscal year.

?Motheo Copper Mine:

?? - Recent Opening: Sandfire announced the opening of its Botswana-based Motheo copper mine in August.

?? - Production Goals: As Motheo ramps up, Sandfire aims to produce 50,000 tonnes of contained copper per year by 2025.

?? - 2023 Production: In the 2023 fiscal year, Sandfire reported production of 84,056 tonnes of contained copper1.

?? - 2024 Outlook: The company anticipates combined production from MATSA and Motheo to fall between 110,000 to 120,000 tonnes in its 2024 fiscal year1.

In summary, Sandfire Resources presents an intriguing investment opportunity, with its diverse copper assets, strategic acquisitions, and growth prospects.

?3. Develop Global (ASX:DVP)

?Figure 3.Weekly Price Chart.

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Unlike the other companies on this list, Develop Global is not a producer of copper; instead, it is developing its three copper projects in Australia with the goal of supplying the clean energy transition.

The Sulphur Springs project, which is comprised of the Sulphur Springs and Kangaroo Caves deposits, is a near-term volcanogenic massive sulphide project that contains copper, zinc and silver. Develop is also working on a potential mine restart for its past-producing Woodlawn zinc-copper project in New South Wales, which closed in 1998. In August, the company reported the discovery of significant high-grade mineralisation, saying it will be incorporated into an updated resource estimate slated for release in the first quarter of 2024. The updated mineral resource estimate will inform the final mine plan.

Lastly, the company has a 20/80 joint venture with Anax Metals (ASX:ANX) for the past-producing Whim Creek copper-zinc project. In July, Anax identified spodumene in pegmatites at Whim Creek, giving the project lithium potential as well.

?Company Overview:

?? - Develop Global is distinct from other companies on this list because it does not directly produce copper. Instead, it focuses on developing three copper projects in Australia with a strategic aim of supporting the clean energy transition.

?Project Details:

?? - Sulphur Springs Project:

???? - Comprising the Sulphur Springs and Kangaroo Caves deposits, this project is a near-term volcanogenic massive sulphide (VMS) project.

???? - Mineral Composition: The Sulphur Springs project contains copper, zinc, and silver.

?? - Woodlawn Zinc-Copper Project:

???? - Past-Producing Mine: The Woodlawn project, located in New South Wales, was a productive zinc-copper mine until its closure in 1998.

???? - Mine Restart: Develop Global is actively working on a potential mine restart for the Woodlawn project.

???? - High-Grade Mineralization Discovery: In August, the company reported a significant discovery of high-grade mineralization at Woodlawn. This finding will be incorporated into an updated resource estimate, scheduled for release in the first quarter of 2024. The updated mineral resource estimate will play a crucial role in shaping the final mine plan.

?? - Whim Creek Copper-Zinc Project:

???? - Joint Venture with Anax Metals (ASX: ANX): Develop Global has entered into a 20/80 joint venture with Anax Metals for the past-producing Whim Creek project.

???? - Lithium Potential: In July, Anax identified spodumene in pegmatites at Whim Creek. This discovery opens up the project's lithium potential.

?Investment Implications:

?? - Develop Global's strategic focus on copper projects aligns with the global shift toward clean energy.

?? - Keep an eye on the Woodlawn project's resource estimate update and the Whim Creek project's lithium exploration.

?In summary, Develop Global's commitment to sustainable resource development and its strategic partnerships make it an intriguing player in the copper sector. Investors should closely monitor the company's progress and project milestones!

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4. 29Metals (ASX:29M)

Company Profile

Market cap: AU$350 million; current share price: AU$0.500

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Figure 4.Weekly Price Chart.

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29Metals has both of its copper operations in Australia, and its primary exploration asset in Chile. Golden Grove in Western Australia is a copper, zinc and precious metals mine, and the Capricorn Copper mine in Queensland produces copper and silver. In Chile, 29Metals owns Redhill, which includes the Cutters Cove copper-gold-silver project.

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During the half year ended on June 30, 29Metals produced 10,000 tonnes of copper, down 51 percent year-on-year due to extreme flooding at Capricorn Copper, which took the mine out of commission until August 1. A phased restart is now underway at Capricorn Copper, but the mine won't be back to full capacity until the first half of 2024.

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Company Overview:

?? - 29Metals Limited is a copper-focused base and precious metals mining company with producing and exploration assets in both Australia and Chile12.

?? - The company explores for, develops, and produces metals in the form of mineral concentrates. These concentrates are then sold to commodity trading firms or smelters for refining and subsequent sale as refined metal products for end use1.

?Operating Assets:

?? - Golden Grove (Western Australia):

???? - Minerals Produced: Golden Grove is a mine that yields copper, zinc, gold, and silver.

???? - Long-Life Asset: It is one of 29Metals' long-life operating assets.

?? - Capricorn Copper (Queensland):

???? - Minerals Produced: Capricorn Copper primarily produces copper and silver.

???? - Recent Challenge: Extreme flooding at Capricorn Copper during the half year ended June 30 led to a significant production decline.

???? - Phased Restart: The mine is now undergoing a phased restart, but it won't be back to full capacity until the first half of 20241.

?Exploration Asset:

?? - Redhill (Chile):

???? - Redhill is 29Metals' primary exploration asset in Chile.

???? - It includes the Cutters Cove copper-gold-silver project.

?Production Figures:

?? - During the half year ending June 30, 29Metals produced 10,000 tonnes of copper.

?? - The decline in production was primarily due to extreme flooding at Capricorn Copper, which temporarily halted operations until August 11.

?Strategic Vision:

?? - 29Metals aims to be a leading ASX-listed copper producer, developer, and explorer.

?? - The company positions itself to benefit from attractive market dynamics for copper and other metals critical to the global energy transition1.

?In summary, 29Metals' diversified portfolio, exploration prospects, and strategic focus on copper make it an intriguing investment opportunity.

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5. Aeris Resources (ASX:AIS)

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Company Profile

Market cap: AU$ 169.3 million; current share price: AU$0.170

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Figure 5. Weekly Price Chart.

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Aeris Resources has four assets in Australia spanning four states, three of which are copper primary: the Tritton operations, the North Queensland operations, the Jaguar zinc-copper operations and the Stockman project.

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In Aeris' 2023 fiscal year, which ended on June 30, the company produced 51,500 tonnes of copper. Going forward into the company's 2024 fiscal year, Aeris will be putting Jaguar into care and maintenance for the time being due to operational challenges and low zinc prices. However, the company's copper operations are expected to perform strongly, with increased production at Tritton. Aeris has announced copper guidance of 40,000 to 50,000 tonnes for the year.

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Ongoing development work at Tritton resulted in an updated mineral resource estimate for the Avoca Tank deposit in September, and increased confidence in the mineral resource estimate for the Constellation deposit in November.

Certainly! Let's delve into an investment report for Aeris Resources Limited. Here's an in-depth analysis and detailed information based on your key points:

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Company Overview:

?? - Aeris Resources Limited is a mid-tier base and precious metals producer.

?? - The company's copper-dominant portfolio comprises the following assets in Australia:

???? - Tritton Operations: Located in New South Wales.

???? - North Queensland Operations: Operating in Queensland.

???? - Jaguar Zinc-Copper Operations: Also situated in Queensland.

???? - Stockman Project: A long-life development project.

???? - Additionally, Aeris has a highly prospective exploration portfolio.

Production Figures:

?? - In the 2023 fiscal year (ending June 30), Aeris produced 51,500 tonnes of copper.

?? - Jaguar Care and Maintenance: Due to operational challenges and low zinc prices, Aeris will temporarily put the Jaguar operations into care and maintenance.

?? - Strong Copper Outlook: Despite the challenges, the company's copper operations are expected to perform strongly, with increased production at Tritton.

?? - Aeris has announced copper guidance of 40,000 to 50,000 tonnes for the upcoming fiscal year.

Recent Developments:

?? - Tritton Development Work:

???? - Ongoing development work at Tritton led to an updated mineral resource estimate for the Avoca Tank deposit in September.

???? - There is increased confidence in the mineral resource estimate for the Constellation deposit, as reported in November.

Investment Implications:

?? - Aeris Resources' diversified asset portfolio, exploration prospects, and commitment to copper production make it an intriguing investment opportunity.

?? - Keep an eye on developments at Tritton and the company's strategic decisions regarding Jaguar.

In summary, Aeris Resources' focus on copper and its growth potential position it well in the metals market.

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FAQs for ASX Copper Stocks

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1. How much is copper worth?

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Copper price is tracked through two main exchanges: COMEX copper and London Metal Exchange (LME) copper. COMEX, headquartered in New York, prices copper by the pound, while LME, based in London, prices it per tonne.

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In 2022, copper reached historically high prices. In Q1 and most of Q2, COMEX copper ranged between US$4.10 and US$4.89 — an all-time high. During the same period, LME copper fluctuated between US$9,000 and US$10,730.

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2. What are the uses of copper?

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Copper finds application across various industries, including construction, electronics, and medical equipment. In 2021, 32 percent of global copper was utilized in equipment manufacturing and 28 percent in building construction.

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Additionally, the electric vehicle and green energy sectors are emerging as significant consumers of copper. Electric vehicles, in particular, require a substantial amount of copper per vehicle.

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3. How to invest in copper on the ASX?

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Investors can access a diverse range of Australian copper companies on the ASX, from miners to explorers. This provides investors the flexibility to choose companies that align with their risk tolerance and investment portfolio.

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When considering investing in a copper company, conducting thorough due diligence is essential. This involves researching the company, its team, financials, and project geology. Once you've identified suitable companies, you can purchase copper stocks through trading apps offering ASX stocks or with the assistance of stock brokers.