Is BHP Group Limited (BHP) the Best Copper Stocks to Buy According to Hedge Funds?

BHP Group Limited (BHP) has emerged as a leading contender in the copper market, with hedge funds taking notice of its competitive position and long-term production potential. As the world transitions towards a lower carbon future, the demand for copper is expected to grow, making BHP an attractive investment option. This article explores the reasons why BHP is considered one of the best copper stocks to buy according to hedge funds.

BHP's competitive production costs and diversified copper assets make it a strong choice for investors seeking exposure to the copper market. With a copper production cost of $1.27 per pound, BHP is more cost-effective than its peers, providing a competitive edge in the market. Additionally, BHP's diversified portfolio of copper assets, including the Escondida mine in Chile and the Olympic Dam mine in Australia, ensures a stable supply of copper and reduces exposure to geopolitical risks.

BHP's copper reserves and resources play a crucial role in maintaining its long-term production outlook. As of December 31, 2021, BHP's copper reserves totaled 1.4 million tonnes, with resources amounting to 107.5 million tonnes. This significant resource base, combined with BHP's operational excellence and disciplined capital allocation, positions the company to meet growing copper demand driven by electrification and the energy transition.

BHP's strong financial performance and commitment to sustainability further enhance its appeal as a copper stock. With an underlying EBITDA margin of 54% and a return on capital employed of 29%, BHP has demonstrated its ability to generate value for shareholders. Moreover, BHP's commitment to social value and sustainability, as outlined in its 2030 social value scorecard, positions the company as a responsible and forward-thinking player in the copper market.



BHP's competitive production costs, diversified copper assets, and strong financial performance make it an attractive investment option for hedge funds seeking exposure to the copper market. As the world transitions towards a lower carbon future, the demand for copper is expected to grow, making BHP a compelling choice for investors. With its commitment to sustainability and social value, BHP is well-positioned to capitalize on the growing demand for copper and generate long-term value for shareholders.