![]() UK-based Rio Tinto is one of the world’s biggest metals mining companies, with commodities like copper, iron ore, uranium, gold and even diamonds among its biggest outputs. This would include a special dividend of 0.4c per share. 5 Glencore reinstated their dividend in February 2021 and also announced in August 2021 that they would return an additional $2.8 billion to shareholders, thanks to the windfall experienced by significantly higher copper prices. ![]() Even more encouragingly, adjusted earnings before interest, tax, depreciation and amortisation earnings before interest, tax, depreciation and amortisation (EBITDA) was up from $4.83 billion in 2020 to $8.65 billion in 2021. 4įor the first half of 2021, Glencore reported strong results, with revenue up 32% from $70.96 million in the first half of 2020 to $93.8 million in June 2021, driven largely by higher copper prices. Copper production is expected to stay relatively flat for the short term, with a guidance of 1.22 million tonnes for 2021 and no guidance released yet for 2022. This was in line with pre-Covid-19 pandemic 2019 production – an impressive feat considering the disruptions to mines caused by Covid-19 pandemic lockdowns in 2020, particularly in South Africa. In 2020, Glencore produced 1.26 million tonnes of copper and sold 3.4 million tonnes of the commodity (including reserves) through its marketing business. The company is one of the largest producers and marketers of copper in the world, but also produces cobalt, gold, nickel, zinc, lead and other minerals. LSE-listed Glencore is an Anglo-Swiss miner based in Switzerland, with operations in over 35 countries. However, because profits and losses are calculated on your full position size and not your margin amount, these can outweigh your deposit significantly. This means you’ll put down a small initial deposit (called margin) to open a larger position. It’s also worth noting that CFDs are leveraged forms of trading. You’ll make a profit if you predict the copper price correctly and a loss if you don’t. With CFDs, you can trade on either the current copper spot price or on copper futures, which means you’ll speculate on the price of copper on a predetermined date to come. If you want to speculate on the price of copper directly, not through copper mining stocks for instance, you can do so through derivative trading products like CFDs. With ETFs, you can trade in a range of copper-related companies, or trade the copper industry generally, with a single position. If you want broad exposure to the copper industry through a number of stocks, you could consider copper ETFs. 1 Although copper prices took a dive in early 2021, due to temporary production slowdown in Europe and China, they have by and large climbed since 2020, when Covid-19 pandemic disruptions to mining temporarily lowered the copper price. The copper industry is dominated by several key players, such as Corporación Nacional del Cobre of Chile (the country with the most copper reserves on the planet), Freeport-McMoRan, BHP, Southern Copper and Glencore.Īccording to BHP, demand for copper will likely double in the next 30 years. It’s then turned into its various known forms, including copper wiring, piping, circuitry and even consumer goods like house fittings and jewellery. These include construction, manufacturing of electronics, transportation and more.Ĭopper is mined from pits in its raw form (copper ore) before being crushed, roasted and smelted. More than just a shiny metal, copper is used in a number of activities. When we talk about the copper industry, we mean the sector that mines and refines the commodity. Copper stocks and ETFs: what you need to know about the industry
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