Which Copper Miner Is Wall Street Betting On in 2018?

Analyst ratings

We’re now getting towards the end of 2017. Overall, it has been a strong year for companies in the metals and mining space. Commodities have built on their 2016 gains, and metals including copper and aluminum have moved to higher price levels. Higher commodity prices have supported mining companies’ price action, and most miners are trading with strong yearly gains, outperforming broader markets.

Which Copper Miner Is Wall Street Betting On in 2018?

Southern Copper (SCCO) and First Quantum Minerals (FM) have gained 32% and 8.5%, respectively, in 2017 based on December 6 closing prices. Glencore (GLEN-L), the trading and mining giant, has risen 22.4% so far in 2017. Teck Resources (TECK), which also mines zinc and coking coal, has risen 13.8% in 2017.

Copper prices

Copper saw a literal one-way rise since July. However, we saw copper prices consolidate in November after a strong October. The LME (London Metals Exchange) three-month copper fell ~0.3% in November. Copper has been weak in December as well. Based on December 6 closing prices, copper is up 19% in 2017, and the red metal has pared some of its 2017 gains.

Series overview

In this series, we’ll see how analysts are rating leading copper miners as 2017 draws to a close, which could help us understand how Wall Street sees different copper producers as we head into 2018. We’ll also see how vehicle electrification could impact mining companies.

Let’s begin by looking at Freeport-McMoRan’s (FCX) ratings and target prices.