The Canada-listed copper stocks we’ve excavated could have more upside should the copper price rally following the base metals’ recent price decline
SmallCapPower | February 5, 2020: The copper spot price has been down for 12 consecutive trading days in a row, the longest losing streak since 1971. Copper prices have fallen ~13% since January 15th, from $2.87/lb to $2.50/lb. The collapse in copper was due mainly to the outbreak of the coronavirus in China. China accounted for 50% of the world’s copper demand in 2019, driven primarily by the country’s construction boom. Fears of an economic slowdown in China have put downward pressure on the base metal. Today we have found three small copper stocks that have withstood the tumultuous decline in copper prices and could be primed for an even bigger surge once the copper price recovers.
*Share prices as at February 3, 2020, data obtained from S&P Capital IQ
Nevada Copper Corp. (TSX:NCU) – $0.325
Copper
Nevada Copper is a junior mining company, which is engaged in the exploration, and development of, copper and other mineral properties in Nevada. The Company currently explores for copper, gold, silver, and iron ore. Nevada Copper’s flagship project is the Pumpkin Hollow property in western Nevada. In December, NCU announced that it had shipped the first copper concentrate from Pumpkin Hollow. This follows a press release announcing that it had commenced production at Pumpkin Hollow’s processing plant on December 16 and the Company expects to be at full commercial production by mid-2020.
- Market Cap: $247.6M
- YTD-Return: -11.0%
- 90-Day Return: +66.7%
- 30-Day Average Trading Volume: 350,060
CopperBank Resources Corp. (CSE:CBK) – $0.055
Copper
CopperBank Resources is a junior copper explorer based in the United States. The Company’s main property is Copper Creek in Pinal County, Arizona; and the Contact copper project in Elko County, Nevada. The Company also holds interests in the Pyramid copper project; and San Diego project that covers an area of 40 square kilometers situated in the Alaska Peninsula. Copperbank’s portfolio is leveraged to the copper price and could rally if the commodity price exceeds $3 a pound.
- Market Cap: $16.5M
- YTD-Return: +22.2%
- 90-Day Return: +22.2%
- 30-Day Average Trading Volume: 189,030
Watch: Copper Demand Should Double in 25 Years, Says Gianni Kovacevic
Copper Mountain Mining Corporation (TSX:CMMC) – $0.70
Copper
Copper Mountain Mining explores copper, gold, and silver deposits. The Company’s flagship asset is its 75% owned Copper Mountain Mine located in southern British Columbia. The mine produces 100 million pounds of copper equivalent per year. Copper Mountain Mining has also permitted the development-stage Eva Copper Project in Queensland, Australia, and a 397,000 hectare prospective land package in Mount Isa. Last October, Copper Mountain Mining announced an increase in the Measured & Indicated Resource by 836M pounds of Cu for its Blackard Deposit. The Company recently announced F2019 production numbers and provided 2020 guidance. Copper Mountain produced 87.2M lbs of copper in 2019, and is expecting to produce ~105M pounds in 2020 at an average cash cost of ~1.38/lb.
- Market Cap: $133.9M
- YTD-Return: -1.4%
- 90-Day Return: 18.6%
- 30-Day Average Trading Volume: 332,520
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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