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  5. CS: Looking ahead at copper plays as I believe the macro backdrop favors electrification in the auto/power train sector. [Capstone Copper Corp.]
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Investment Q&A

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Q: Looking ahead at copper plays as I believe the macro backdrop favors electrification in the auto/power train sector. What top 3 copper plays would you recommend for a 3-5 year hold?

Asked by Christopher on June 22, 2022
5i Research Answer:

For a safe copper play, we like Lundin Mining (LUN), it has a good combination of size, potential, and balance sheet (cash of $150.8M). It pays a solid dividend of 5.1%, and on a five-year basis has grown its dividend by 63% annually. We like it for its size ($7.2B market cap), low debt levels, good growth, and solid profit margins. 

We like Capstone Mining (CS) for its size ($2.7B market cap), strong balance sheet, good profit margins, low valuation, and good growth in the past few years. 

Lastly, we like Copper Mountain Mining (CMMC) for its growing profit margins and free cash flow, strong balance sheet, and low valuation. 

We would rank (from highest to lowest): LUN, CS, CMMC.