The prices of copper are soaring, and experts believe this trend could continue for the foreseeable future. Copper futures have seen a significant increase, trading above $11,000/tonne compared to the beginning of the year when they were below $8,700/tonne. This represents a nearly 30% increase, making copper one of the best-performing assets in 2024.
One company that stands to benefit from this surge in copper prices is Central Asia Metals (LSE: CAML). The company operates a copper mine in Kazakhstan and also produces lead and zinc in North Macedonia. In 2023, Central Asia Metals focused on investments in its operations, with analysts predicting a 26% increase in annual earnings for 2024 and a further 15% increase in 2025.
What makes Central Asia Metals an attractive investment opportunity is its undervalued stock price. With a price-to-earnings-growth ratio of 0.4, the company is considered cheap by market standards. Additionally, the CEO of the company highlighted the essential role that metals play in modern living and technological advancements, further strengthening the investment case for copper.
Investing in mining stocks like Central Asia Metals comes with inherent risks due to the volatility of commodity prices. However, with the positive outlook for copper and the company’s strong position in the market, many investors see this as an opportunity to tap into the rising copper prices. As the demand for copper continues to grow, companies like Central Asia Metals are poised to benefit from this trend, making them an attractive choice for investors looking to capitalize on the commodity boom.
