Three Top Canadian Copper Stocks to Buy in February 2025

Key takeaways

Copper demand is set to soar: With the global push toward electrification, renewable energy, and EVs, copper is becoming one of the most critical metals for the future, creating strong long-term investment opportunities.

Different copper stocks offer varying risk-reward profiles: Lundin Mining provides stable, diversified production, Ero Copper offers high-grade, low-cost mining, and Faraday Copper presents a high-upside exploration play, giving investors multiple ways to gain exposure.

Supply constraints could drive prices higher: Limited new copper discoveries, declining ore grades, and growing demand could lead to a supply shortage, potentially boosting copper prices and benefiting well-positioned mining companies.

3 stocks I like better than the ones on this list.

Many investors feel uneasy about buying futures contracts, like copper futures, or dealing with commodities in general. So, when they want to invest in Canadian stocks to gain exposure to a precious metal, they typically look for publicly traded producers.

In this article, I will speak on 3 top Canadian copper stocks on the Toronto Stock Exchange that you can look at today to gain exposure to rising copper prices.

Remember, although these are Canadian companies, most of them mine in foreign jurisdictions such as Australia, Peru, Mexico, the United States, Argentina, Ecuador, Mongolia, as well as other countries in South America. 

Understanding where a company’s production is coming from is always important since building a mine in a country with an unstable government carries so much political risk. 

Remember, there are plenty of small/nano-cap copper producers here in Canada, like Kodiak Copper (TSXV:KDK). However, to reduce overall volatility, I’m going to stick to significant copper producers with a reasonable history of production.

In addition to this, I’m going to focus on companies that have the majority of their production in copper. For example, companies like Rio Tinto, Teck Resources or Freeport-McMoran have copper exposure and produce large amounts in terms of volume. However, it doesn’t make up the majority of their production.

Although copper is down from its pandemic highs, it is still significantly higher than prices we’ve witnessed pre-pandemic, which bodes well for a copper mining company.

What are the top copper stocks in Canada?

Diversified global copper producer

Lundin Mining (TSE:LUN)

Lundin Mining is a mid-tier mining company with copper-focused operations in Chile, the U.S., Brazil, Portugal, and Sweden. While copper is its primary commodity, it also produces zinc, nickel, and gold. The company is known for its strategic acquisitions and commitment to responsible mining, making it a strong player in the global copper market.

P/E: 25.3

5 Yr Revenue Growth: 15.4%

5 Yr Earnings Growth: 3.6%

5 Yr Dividend Growth: 24.6%

Yield: 2.9%

  • Major copper producer with diversified global operations, reducing geopolitical risk.
  • Strong balance sheet and cash flow generation support ongoing growth and dividends.
  • Recent acquisition of the Caserones copper mine in Chile enhances long-term production capacity.
  • Benefiting from rising global demand for copper in EVs, renewables, and power grids.
  • Actively investing in operational efficiency and cost reductions to maintain profitability.
  • Well-positioned to capitalize on copper price upswings due to limited global supply growth.
  • Copper Price Movements: Higher prices could boost profitability and cash flow.
  • Integration of Caserones Mine: Success in optimizing this new asset will be key to future growth.
  • Sustainability Initiatives: Lundin is focused on reducing emissions and improving ESG performance.
  • M&A Opportunities: The company has a track record of strategic acquisitions to expand production.
  • Commodity Price Volatility: Copper prices can be cyclical, impacting revenue and profitability.
  • Operational Challenges: Cost overruns or production delays could affect margins.
  • Geopolitical Risk: Operations in Chile and other regions may face regulatory or political uncertainty.
  • Environmental Regulations: Stricter mining laws could lead to higher compliance costs.

High-grade copper producer in Brazil

Ero Copper (TSE:ERO)

Ero Copper is a Canadian mining company focused on copper production in Brazil. It operates the Caraíba copper mine and is expanding with the Tucumã project, which is expected to significantly increase output. Ero is known for its high-grade copper deposits, low-cost operations, and commitment to innovation in mining.

P/E: 78.9

5 Yr Revenue Growth: 12.9%

5 Yr Earnings Growth: -%

5 Yr Dividend Growth: -%

Yield: -%

  • Focuses on high-grade copper deposits, resulting in lower production costs.
  • Tucumã project expected to double production by 2025, driving strong future growth.
  • Strong financials with low debt and self-funded expansion plans.
  • Operates in a mining-friendly jurisdiction with stable regulations.
  • Investing in technology to improve efficiency and reduce environmental impact.
  • Positioned to benefit from global copper supply shortages and growing demand.
  • Tucumã Mine Development: Progress toward production will be a key catalyst.
  • Copper Demand from EVs: Rising EV adoption is increasing long-term copper demand.
  • Exploration Success: Discoveries of new high-grade deposits could further boost growth.
  • Operational Efficiency Gains: Cost-saving initiatives could enhance margins.
  • Single Country Exposure: Operations are concentrated in Brazil, creating geopolitical risk.
  • Project Execution Risk: Delays or cost overruns at Tucumã could impact financials.
  • Copper Price Sensitivity: Revenue is heavily dependent on copper market fluctuations.
  • Limited Diversification: Unlike larger miners, Ero Copper lacks exposure to multiple commodities.

Copper exploration and development company

Faraday Copper (TSE:FDY)

Faraday Copper is an early-stage copper exploration and development company focused on the Copper Creek project in Arizona, USA. The project has significant resource potential, and the company is working toward advancing it into a producing mine. Faraday offers high-risk, high-reward potential for investors looking for exposure to future copper supply growth.

P/E:

5 Yr Revenue Growth: -%

5 Yr Earnings Growth: -%

5 Yr Dividend Growth: -%

Yield: -%

  • Copper Creek is a large-scale project in a stable, mining-friendly jurisdiction.
  • Positioned to benefit from increasing copper demand driven by electrification and renewables.
  • Strong backing from institutional investors supporting long-term development.
  • Significant exploration upside with ongoing drilling results improving resource estimates.
  • Potential for strategic partnerships or acquisition by a larger mining company.
  • Well-timed to bring new supply online as global copper shortages worsen.
  • Drilling Results & Resource Expansion: Positive updates could drive investor interest.
  • Project Development Milestones: Key feasibility studies will determine economic viability.
  • Partnerships & M&A Activity: Larger miners may seek to acquire or fund development.
  • Copper Market Trends: Rising demand could accelerate interest in new projects like Copper Creek.
  • Pre-Revenue Status: No current production means the company relies on external funding.
  • Project Development Uncertainty: Feasibility and permitting challenges could delay progress.
  • High Capital Requirements: Developing a mine requires significant investment.
  • Market Volatility: Copper price downturns could impact financing options.

Is there a copper miners ETF?

As of right now, there are a few copper mining ETFs you could buy. The Global X Copper Miners ETF is the most popular, which trades under the ticker COPX. The fund has over $2.5B in assets under management.

Its top holdings contain the likes of Ivanhoe Mines, Lundin Mining, Southern Copper, First Quantum Minerals, and BHP Group.

The fund has 38 holdings, giving investors strong exposure to copper producers. Other notable Canadian options inside of the portfolio but not in the top ten holdings are Capstone Copper, Hudbay Minerals, and Altius Minerals.

Overall, these 3 Canadian copper stocks should benefit from the current environment

I’m not really a fan of investing in cyclical plays like this for the long term. But, there is no doubt that copper prices are likely to stay high for the next few years, and as a result, there are likely to be some short-term gains to be made on Canadian copper stocks.

Remember that although there is likely still value here to be had, a lot of it is priced in. We can also see the overall volatility in these copper stocks as something as simple as a short-term guidance cut to Lundin’s copper profile caused its share price to drop by double digits.

Expect some significant ebbs and flows over the next few years in these copper producers, and be ready to hang on for the ride.