MENU

Can you turbocharge your returns with ASX copper miners?

The price of copper looks like it’s on its way up again and the share prices of Australian copper companies could be going with it.

Copper again hit its highest point in more than a month on Thursday amid increasing indications of rising demand in China.

And Congo’s minister for mining has ordered a joint venture of Chinese investors to stop exporting raw copper and cobalt before processing because of their low value on international markets, helping to boost the price of copper, according to Reuters.

Copper is trading above $3 (US/lb), up from the $2.22 it was trading at this time last year.

A number of Australian copper companies have seen their share prices climb over that period.

The share price of copper miner Avanco Resources Limited (ASX: AVB) has moved from $0.06 to close on Thursday at $0.09.

The share price of Xanadu Mines Ltd (ASX: XAM), a copper and gold exploration company, has gone up from $0.19 to $0.30 in the past year.

And OZ Minerals Limited (ASX: OZL), a mining company with a focus on copper, has seen its share price rise from $5.88 this time last year to close on Thursday at $7.93.

It appears those companies certainly benefited from the rising price of copper.

And if the price of copper keeps climbing, it’s likely the share prices of those with big interests in the commodity will follow.

As the price of copper is driven by global demand, China, the world’s biggest copper consumer, can heavily influence its price.

Earlier this year many were predicting a grim future for the price of copper.

But things have changed.

The IMF now expects China’s economy to grow by 6.8% this year and 6.5% the year after, up slightly from its previous forecast in July.

However, the outlook for copper may soon be clearer following China’s Communist Party Congress next week.

A Big, Fat, Fully Franked Dividend

This company's dividend is almost the stuff of legends. Since it started paying dividends in 2007, it has increased its payout to shareholders every single year, a run that includes 21 consecutive dividend increases.

Based on the last 12-months of dividends, its shares are currently offering a fully-franked 4.8% yield, which grosses up to almost 7% when those franking credits are included.

Discover the name of this "new breed" of blue chip along with 2 others in our new FREE report "The Motley Fool's Top 3 Blue Chips Stocks For 2017."

Click here to receive your copy.

Motley Fool contributor Steve Holland has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.