Published On: February 3rd, 2024
The copper market may have faced some setbacks in the aftermath of the COVID-19 pandemic, but the positive long-term outlook of the metal prompts investors to look for more exposure. Several reports state that a future breakout could be coming for this precious metal, with several new mines poised to go online. The copper market has an amazing scope in Australia, the eighth copper-producing country in the world. Several ASX-listed companies like Aeris Resources, 29 Metals, and Sandfire have started mining and exploring the base metal.
Aeris Resources ASX and Other Companies on the List
Here is a list of companies, like Aeris Resources ASX and Sandfire, that are competing to reach the number one position among the copper stock candidates.
Aeris Resources Limited (ASX: AIS)
Aeris Resources has four different assets in Australia, which spans four states. Among them, three are copper primary states:
- The Tritton Operations
- The North Queensland Operations
- The Jaguar zinc-copper Operations
- The Stockman Project
Aeris Resources Limited’s fiscal year ended on June 30, 2023, and as per its report, the company produced 51,500 tonnes of copper. The company’s 2024 fiscal year will focus on putting Jaguar into care and maintenance, including operational challenges and lower zinc prices. However, the company’s copper operations are projected to perform well. It will witness an increased production at the Tritton Operations. Aeris has already announced copper guidance of around 40,000 to 50,000 tonnes for the year.
Fig.1 Tritton Copper Operations
The company has further released its Quarterly Activities Report for December 2023. After looking at Aeris Resources latest news, the brokers stated that the copper production was 14% below expectation.
Sandfire Resources (ASX: SFR)
Sandfire Resources has several copper mines in Australia. The company has MATSA copper operations in Spain. On the other hand, it operates DeGrussa copper-gold in Western Australia. Meanwhile, the Motheo copper mine is situated in Botswana.
Fig.2 DeGrussa Copper Operations Map
Sandfire is entirely concentrating on the DeGrussa operations as of now. It has focused on processing oxide stockpiles to produce different forms of copper and gold. However, the company has decided to transition the same site to care and maintenance. This is because the stockpiles became low margins, and the economics have worsened too. Reports state that the mine produced 27,502 tonnes of copper in the 2023 fiscal year. Moreover, around 1,457 tonnes more copper are to be produced in Q4.
Sandfire acquired the MATSA mining complex in February 2022 for US$1.87 billion, and it has become a major producer for the company, outputting 55,737 tonnes of contained copper in the 2023 fiscal year. The company also reported production of 84,056 tonnes of contained copper in the same year.
29Metals (ASX: 29M)
29Metals has all copper operations in Australia. It is called the Golden Grove and is situated in Western Australia. It deals in copper, zinc, and other precious metals. The company has another branch called the Capricorn Copper Mine in Queensland. It also produces copper and silver.
29Metals had earlier produced 10,000 tonnes of copper during the half-year ended on June 30, 2023. However, it came down to 51% year-on-year because of extreme flooding at Capricorn Copper. That is why the concerned authorities took this mine out of commission until August 1, 2023. The company has already gone for a phased restart of this section again, with the operation’s potential to be back in full swing by the first half of 2024.
In conclusion, the ASX copper landscape for 2024 presents a dynamic and evolving scenario, with companies like Aeris Resources, Sandfire, and 29Metals striving to secure their positions as major players in the industry.
