https://www.theglobeandmail.com/
Copper producers have enjoyed a spectacular rebound in the stock market over the past eight months, no doubt raising questions among investors about how long the good times will last.
The argument for staying put is persuasive, though: Global demand for copper should rise with the post-pandemic global economic recovery and surging interest in copper-consuming renewable energy projects, according to analysts, underpinning a rally that has already lifted some stocks to their highest levels in several years.
Freeport-McMoRan Inc., FCX-N +1.01%increase, a U.S.-based pure-play copper miner, has seen its share price rise almost 300 per cent from the lockdown lows in March and is now approaching a five-year high. (Full disclosure: I own this stock, which has stood out from my collection of mostly plodding laggards).
Vancouver-based First Quantum Minerals Ltd., FM-T +1.50%increase
, whose copper operations accounted for more than 80 per cent of revenue in the last quarter, has seen its share price rise 220 per cent since March. The shares are now trading at two-year highs.
For the rest of this article: https://www.theglobeandmail.com/investing/markets/inside-the-market/article-why-its-a-good-bet-to-stick-with-rallying-copper-stocks/