The Canadian copper stocks we’ve unearthed have seen substantial price and volume momentum in 2019
SmallCapPower | March 5, 2019: The copper price has rallied 14% since the beginning of the year, currently sitting at US$2.90/pound, up from US$2.55/pound at the beginning of January. This price increase has been fueled by a potential deal in the US-China trade dispute, as China is the world’s largest importer of copper, importing US$25B worth annually. Additionally, the Federal Reserve, Bank of Canada, and European Central Bank have taken a dovish stance towards further interest rate hikes in 2019, further fueling commodity prices. Today we have discovered four Canadian copper stocks that have seen strong price and volume momentum since the beginning of 2019. Price and volume momentum indicate bullishness, as increased share prices on higher volumes show heightened investor interest in a stock.
*Share prices as at close March 1, 2019, data obtained from S&P Capital IQ
Ero Copper Corp. (TSX:ERO) – $17.06
Ero Copper is a base metals producer focused on its Vale do Curaçá Property, located in Bahia, Brazil, which has been in production for 39 years. The Company mines copper from four mines on the property: the Pilar underground mine, the Surubim open pit mine, the R22W open pit mine, and the Vermelhos underground mine. Ero Copper also owns the Boa Esperanҫa development project, an IOCG-type copper project located in Pará, Brazil, and the NX Gold Mine, an operating gold and silver mine located in Mato Grosso, Brazil. The Company reported Q3/18 results on November 8, 2018. EPS was $0.12, which beat consensus estimates of $0.03. Revenues were $48.9M, slightly lower than estimates of $52.5M. Management has provided production guidance for F2019E, in which the Company is expecting to process ~2,050 kt of ore at a copper grade of 2.0% with a projected cost of between US$1.00-$1.10/pound.
- Market Cap: $1,445.6 Million
- YTD Return: +61.9%
- 30-Day Average Volume: 317,000
- 90-Day Average Volume: 221,000
Taseko Mines Limited (TSX:TKO) – $0.90
Taseko Mines is a precious and base metals producer focused on British Columbia and Arizona. The Company’s projects include gold, copper, and niobium. The Company’s flagship asset is the open pit Gibraltar Mine, which is a copper-molybdenum mine located in south-central British Columbia. Taseko also owns the Aley niobium and Harmony gold projects located in BC, and the Florence copper project located in Arizona. On February 12, the Company reported 2018 annual results: Revenue and EPS were $343.8M and -$0.04, respectively, with production of 125.2M pounds of copper at an average cost of US$1.93/pound. On February 15, 2019, Taseko announced it had completed its acquisition of YellowHead Mining in an all-stock deal for $15.1M, payable in Taseko common shares.
- Market Cap: $221.3 Million
- YTD Return: +25.7%
- 30-Day Average Volume: 282,000
- 90-Day Average Volume: 247,000
Bell Copper Corporation (TSXV:BCU) – $0.115
Bell Copper Corporation focuses on copper exploration in North America. The Company’s assets include the Kabba Project in Arizona, located in a region that is responsible for 10% of the world’s copper production. Also, Bell Copper has seven state exploration permits covering an area in aggregate of 8,030 acres. On January 25, the Company provided an update from the Perseverance porphyry copper project in Arizona. Drill hole K-20 returned promising results, with more than 700 meters of anomalous copper mineralization intercepted, comprising Chalcopyrite, Bornite, and Chalcocite, suggesting the porphyry target is proximal.
- Market Cap: $8.1 Million
- YTD Return: +71.4%
- 30-Day Average Volume: 66,000
- 90-Day Average Volume: 49,000
Crown Mining Corp. (TSXV:CWM) – $0.12
Crown Mining is an exploration-stage company that explores copper properties in Ontario, Nevada, and California. The Company holds an interest in more than 10 unpatented lode claims in Nevada, 13 unpatented mining claims and a lease on approximately 40 patented claims in California, as well as 10 patented mining claims in Ontario. On February 26, 2019, Crown Mining announced that it had applied to the U.S. Forest Service for a permit to drill the Moonlight Copper deposit located in California. The drilling program will consist of 26 holes totaling 2,600 feet.
- Market Cap: $5.0 Million
- YTD Return: +33.3%
- 30-Day Average Volume: 44,000
- 90-Day Average Volume: 42,000
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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