Lithium has been the hot commodity among stock investors in recent years, but ASX investors are reminded that's not the only material required to make batteries.
Copper has been used for centuries as a conductor of electricity and is required in significant amounts for both electronic circuitry and batteries.
Maqro Capital head of trading Mark Gardner pointed out last month that there's currently an over-reliance on one particular region to supply copper to the world.
"The two biggest global producers of copper are Chile and Peru. Together, the South American powerhouses make up 43% of the world supply," Gardner posted on Livewire.
"They also happen to be in political disarray."
So any copper producers outside that part of the planet may do pretty well in the coming years.
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Last man standing on the ASX
For Wilson Asset Management equities dealer William Thompson, the planets have aligned for Sandfire Resources Ltd (ASX: SFR).
"They've got some strong cash flow coming through next year," he said on a Wilson video.
"That's on the back of the Botswana asset, which is nearly into production."
Red Leaf Securities chief John Athanasiou agreed with Thompson earlier this month, saying copper is "a critical element in producing batteries for electric vehicles".
"Copper is a dominant revenue stream for Sandfire," he said.
"It produced more than 48,000 tonnes of copper in the first half of fiscal year 2023."
The Sandfire share price has risen an amazing 78% since October.
The company's Spanish operations have much upside, according to Thompson.
"I think it's starting to get more de-risked as we go into the year," he said.
"At today's valuation it's a buy."
Gardner said that Sandfire Resources is "one of the last large cap copper plays left on the ASX".
"Given the strong copper price dynamics, we see strong potential for the company to exceed revenue expectations."
