-
Freeport-McMoRan Inc. (FCX)
-
Teck Resources Limited Class B Subordinate Voting Shares (TECK.B)
-
Capstone Copper Corp. (CS)
Q: With all the current turbulence, what is your outlook on copper in general, and specifically Capstone? Thanks.
5i Research Answer:
There could be tariffs on copper, which could create some price instability and uncertainty, but we feel there are still long-term tailwinds with AI and other copper-reliant industries. CS trades at an 18.6X forward P/E, but forward growth estimates are strong. It has a good balance sheet, it has a somewhat high debt load, but it is profitable and we would be comfortable holding here, while acknowledging it is a more growthier, higher risk copper name. For more stability, we like FCX or TECK.B.