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

AInvestThursday, Dec 12, 2024 9:28 pm ET
1min read


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.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.