copper prices

GLOBAL X COPPER MINERS ETF $13.56 (New York symbol COPX; buy or sell through brokers; www.globalxfunds.com) tracks the Solactive Global Copper Miners Index, which includes between 20 and 40 international companies that mine, refine or explore for copper. Germany-based Structured Solutions AG created this index. Canadian companies make up 38.1% of the fund’s holdings. It also includes companies based in the U.S. (10.7%), Australia (6.9%) and Mexico (6.2%), Global X Copper Miners ETF’s MER is 0.65%. Its top 10 holdings are Lundin Mining Corporation at 6.8%; Xstrata plc, 6.1%; Grupo Mexico, 6.1%; Southern Copper Corporation, 5.9%, Antofagasta plc, 5.4%; First Quantum Minerals, 5.2%, Jiangxi Copper Company, 5.2%; Vedanta Resources, 5.2%; HudBay Minerals, 5.2%; and Freeport Copper, 5.1%....

NEWMONT MINING $59.43 (New York symbol NEM; Shares outstanding: 488.2 million; Market cap: $29.0 billion; TSINetwork Rating: Average; Dividend yield: 2.4%; www.newmont.com) operates gold mines in the U.S., Canada, Mexico, Australia, New Zealand, Peru, Indonesia and Ghana. The company’s worldwide diversification, plus its strong cash flow and balance sheet, make it our favourite gold stock for safety-conscious investors. In 2011, Newmont had record cash flow of $3.6 billion, or $7.27 a share, up 12.9% from $3.2 billion, or $6.46 a share, in 2010. The company holds cash of $1.8 billion, or $3.61 a share. Its long-term debt of $3.6 billion is a low 11.7% of market cap....

Candente Copper, $1.03, symbol DNT on Toronto (Shares outstanding: 118.6 million; Market cap: $122.2 million; www.candentecopper.com), is developing the large-scale Canariaco Norte copper/gold/silver deposit in northern Peru. The deposit holds as much as 8.9 billion pounds of copper, 2 million ounces of gold and 53 million ounces of silver. Candente handed out shares of Cobriza Metals (Toronto symbol CZA) to its shareholders in October 2011. Cobriza holds all of Candente’s properties in Peru except for Canariaco Norte. Candente holds cash of $20 million U.S. That’s enough to complete its feasibility study on the financial viability of a mine. If the company decides to go ahead, it will need to find a major partner, because it will cost over $1.6 billion to develop a mine at Canariaco Norte....

NEWMONT MINING CORP. $60 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 493.1 million; Market cap: $29.6 billion; Price-to-sales ratio: 2.8; Dividend yield: 2.3%; TSINetwork Rating: Average; www.newmont.com) expects its overall copper production will fall to around 160 million pounds in 2012 from 206 million pounds in 2011. That’s because the operators of its 44.56%-owned Batu Hijau open-pit copper mine in Indonesia need time to clear out waste material so they can reach lower depths with higher grades of copper. As well, Newmont expects its copper production costs to jump to between $1.80 and $2.20 per ounce in 2012 from $1.26 in 2011. The company also expects to produce 5.0 million to 5.2 million ounces of gold in 2012, which is comparable to the 5.2 million ounces it produced in 2011. However, due to rising power and labour costs at its Australian mines, its gold-production costs will jump to between $625 and $675 an ounce from $592 in 2011. Newmont’s long-term outlook remains bright. Concerns over European sovereign debt should continue to spur gold prices. Copper prices should also rebound in 2012, as global consumption will probably exceed production....

NEWMONT MINING CORP. $60 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 493.1 million; Market cap: $29.6 billion; Price-to-sales ratio: 2.8; Dividend yield: 2.3%; TSINetwork Rating: Average; www.newmont.com) expects its overall copper production will fall to around 160 million pounds in 2012 from 206 million pounds in 2011. That’s because the operators of its 44.56%-owned Batu Hijau open-pit copper mine in Indonesia need time to clear out waste material so they can reach lower depths with higher grades of copper. As well, Newmont expects its copper production costs to jump to between $1.80 and $2.20 per ounce in 2012 from $1.26 in 2011.

The company also expects to produce 5.0 million to 5.2 million ounces of gold in 2012, which is comparable to the 5.2 million ounces it produced in 2011. However, due to rising power and labour costs at its Australian mines, its gold-production costs will jump to between $625 and $675 an ounce from $592 in 2011.

Newmont’s long-term outlook remains bright. Concerns over European sovereign debt should continue to spur gold prices. Copper prices should also rebound in 2012, as global consumption will probably exceed production.

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AMERIGO RESOURCES $0.50 (Toronto symbol ARG; TSINetwork Rating: Speculative) (604-681-2802; www.amerigoresources.com; Shares outstanding: 172.3 million; Market cap: $86.2 million; No divd.) processes copper and molybdenum from the waste rock from Chile’s El Teniente, the world’s largest copper mine. In the three months ended September 30, 2011, Amerigo’s cash flow was $0.03 a share, down from $0.06 a year earlier. However, that was the result of a strike that is now over. Amerigo has just declared its semi-annual dividend of $0.02 a share. That gives the stock a high 8.0% yield. The dividend appears safe, but a prolonged period of low copper prices could lower the cash the company has available for dividend payments....

AMERIGO RESOURCES $0.50 (Toronto symbol ARG; TSINetwork Rating: Speculative) (604-681-2802; www.amerigoresources.com; Shares outstanding: 172.3 million; Market cap: $86.2 million; No divd.) processes copper and molybdenum from the waste rock from Chile’s El Teniente, the world’s largest copper mine.

In the three months ended September 30, 2011, Amerigo’s cash flow was $0.03 a share, down from $0.06 a year earlier. However, that was the result of a strike that is now over.

Amerigo has just declared its semi-annual dividend of $0.02 a share. That gives the stock a high 8.0% yield. The dividend appears safe, but a prolonged period of low copper prices could lower the cash the company has available for dividend payments.

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GLOBAL X COPPER MINERS ETF $14.14 (New York symbol COPX; buy or sell through brokers; www.globalxfunds.com) tracks the Solactive Global Copper Miners Index, which includes between 20 and 40 international companies that mine, refine or explore for copper. Germany-based Structured Solutions AG created this index. Canadian-based companies make up 41.2% of the fund’s holdings. It also includes companies based in the U.S. (11.0%), Australia (8.4%) and Mexico (6.1%), Global X Copper Miners ETF’s MER is 0.65%. Its top 10 holdings are Southern Copper Corporation at 5.3%, Ivanhoe Mines Ltd., 5.3%; Grupo Mexico, 5.1%; Lundin Mining Corporation, 5.0%; Jiangxi Copper Company, 5.0%; Kazakhmys plc, 4.9%; Antofagasta plc, 4.9%; Inmet Mining, 4.8%; Freeport Copper, 4.8%; and Xstrata plc, 4.7%;...

AMERIGO RESOURCES, $0.53, symbol ARG on Toronto, processes copper and molybdenum from the waste rock from Chile’s El Teniente, the world’s largest copper mine. This contract runs through 2021. Amerigo has a further agreement to process material from the nearby Colihues tailings pond. The company gets 94% of revenue by processing copper. The remaining 6% comes from molybdenum. In the three months ended September 30, 2011, Amerigo’s revenue rose 6.8%, to $42.0 million from $39.3 million a year earlier (all figures except share price in U.S. dollars). Higher copper prices offset lower production and molybdenum prices....

IMPERIAL METALS $22.45 (Toronto symbol III; TSINetwork Rating: Speculative) (604-669-8959; www.imperialmetals.com; Shares outstanding: 37.5 million; Market cap: $800.5 million) owns the Mount Polley copper/gold mine and the Huckleberry copper/molybdenum mine, both in B.C. The company’s cash flow per share rose 30.4% in the three months ended June 30, 2011, to $0.30 from $0.23. Higher gold and copper prices were the main reason for the gains. Imperial aims to use the cash flow from its existing mines to build a $228-million open-pit mine on its Red Chris copper/gold property in northwestern B.C. The company bought Red Chris in 2007....