In this article, we will explore the top five companies that control the world’s copper reserves. These companies not only provide protection against inflation but also offer the opportunity to collect a nice dividend.
First, let’s take a look at the proven copper reserves. The first company on the list is Codelco, a Chilean state-owned company. However, since it does not provide an investment opportunity for retail investors, we can exclude it from our analysis. In second place, we have Freeport, followed by BHP, Rio Tinto, and Anglo American. These are public companies that control the world’s copper reserves.
Let’s dive deeper into Freeport. This company is listed on the New York Stock Exchange under the ticker FCX. From a technical analysis perspective, the stock seems to be heavily traded. Although the dividend is currently small, less than 1%, Freeport is a high-quality company with a PE ratio of 25 and a price-to-book ratio of 3.5.
Moving on to BHP, this stock offers a higher dividend yield, close to 6%. The PE ratio varies depending on the inclusion or exclusion of ordinary items, ranging from 11 to 14.5. BHP also has a strong current ratio and a debt-to-equity ratio of 40%.
Rio Tinto is the third-largest mining company in the world, along with BHP. It is traded on multiple exchanges, including London and the New York Stock Exchange. Rio Tinto has a PE ratio of 11, a price-to-book ratio of 2.25, and a current ratio of 1.6. It is a company worth considering for investment.
Lastly, we have Anglo American, which is not available on the New York Stock Exchange. It offers a dividend yield of just under 5%. The PE ratio is 15, the price-to-book ratio is 1.7, and the current ratio is 1.9. Anglo American is another potential investment option.
In conclusion, these top five companies provide an opportunity to invest in the copper market and benefit from the future electrification trend and the increasing demand from emerging markets. This article serves as a starting point for your research and offers insights into the potential of these companies. If you are interested in investing in the copper sector or any other sectors, feel free to let us know. We hope you find this article helpful. Take care and happy investing!
