The junior copper stocks on our list outperformed the market despite the falling price of copper
SmallCapPower | August 30, 2018: Currently the copper price stands at US$2.70/lb, a significant drop of 11% in 2018. The global decrease in copper prices has dramatically affected key investment funds such as COPX, the top copper index last year, seeing its value depreciate 21% (YTD). Today we have identified four junior copper stocks that have outperformed the market, averaging 112% returns since the beginning of 2018.
Evrim Resources Corp. (TSXV:EVM) – $1.27
Diversified Mining
Evrim Resources is a Canada-based mining company that explores for minerals including copper, gold and silver in projects spanning Mexico, the United States and Canada. Evrim’s flagship property is the Cuale High Sulphidation project, a gold and silver property located in Mexico covering an area of 232 km2. In April 2018, trenching exploration yielded results of 13.61 g/t Au over 106 meters. Additionally, the Company owns royalties in the Cumobabi copper mine that is currently undergoing 7,000m drilling program.
- Market Cap: $100.8 Million
- 1 Month Total Return: 25.7%
- YTD Total Return: 408.0%
- Avg Volume last 30 days: 70,638
Trilogy Metals Inc. (TSX:TMQ) – $2.33
Diversified Mining
Trilogy Metals is a Canada-based metals exploration company focused on developing mineral reserves in the Ambler mining district of Alaska. The Company’s two exploration sites are the Artic and Bornite Project. A Pre-Feasibility study of the Artic Project indicated Probable mineral reserves of 43Mt with average grades of 2.32% Cu, 3.24% Zn, 0.49 g/t Au and 36.0 g/t Ag. On June 5, 2018, the Company released an initial assay report estimating reserves at the Bornite Project to contain 77M pounds of cobalt.
- Market Cap: $306.5 Million
- 1 Month Total Return: -6.4%
- YTD Total Return: 67.6%
- Avg Volume last 30 days: 6,457
Nevsun Resources Ltd. (TSX:NSU) – $4.83
Diversified Mining
Nevsun is a mid-tier mining company focused on developing base metals including copper, zinc, gold and silver. The company has two major mining operations: the Bisha mine located in the country of Eritrea and the Timok Project located in Serbia. The 2018 consolidated guidance for the Bisha project is estimated at 20 – 30Mlbs Cu and 210 – 240Mlbs Zn. On July 26, 2018, Nevsun received an unsolicited offer from Lundin Mining Corporation to acquire all the Company’s issued and outstanding shares. The board of directors have yet to make a decision on the offer.
- Market Cap: $1,457.2 Million
- 1 Month Total Return: -0.4%
- YTD Total Return: 57.8%
- Avg Volume last 30 days: 1,221,560
Ero Copper Corp. (TSX:ERO) – $8.70
Copper
Ero Copper is a base metals mining company focused on developing copper reserves in Brazil. The Company’s flagship project is the MCSA mine with a 2018 guidance of 25.5 – 27.5kt of copper production. In 2018, the Company has expanded operations within the Curaçao Valley and in May announced major copper deposits of 1.33% Cu over 23m within the Pilar Mine.
- Market Cap: $735.9 Million
- 1 Month Total Return: 2.5%
- YTD Total Return: 14.8%
- Avg Volume last 30 days: 42,586
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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