Guess which ASX copper stock could be the best to buy now

Ord Minnett is very bullish on this copper miner. But why?

| More on:
A smiling miner wearing a high vis vest and yellow hardhat does the thumbs up in front of an open pit copper mine.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There are a number of ways to gain exposure to the booming copper price on the Australian share market.

But one of the best ways to do it could be from an ASX copper stock that is flying largely under the radar.

Which ASX copper stock?

The copper stock in question is Capstone Copper Corp (ASX: CSC).

Capstone Copper is a leading copper producer operating in the Americas. It notes that from exploration to mine development to operations, it is focused on creating growth and generating value for investors, employees, and communities as it aims to meet the surging global copper demand.

A recent note out of Ord Minnett reveals that its analysts are very positive on the company. This due to its strong production growth outlook and the high copper price. They said:

[The buy rating is] based on the Canadian company's strong production growth prospects from its already operating mines and future developments, its relatively high exposure to the copper price, on which Ord Minnett has a positive view, and an attractive entry point at present valuation levels. ‍

The broker also highlights the Mantoverde operation in Chile as a reason to buy. It expects this operation to generate huge profits in the near term. Its analysts add:

Capstone has two operational mines in Chile, one in the US and one in Mexico, and a fully permitted development project in Chile. The most significant of these assets is Mantoverde open-pit mine in Chile, which accounts for circa 49% of our CY25 operating earnings forecast of US$1.51 billion ($2.35 billion). ‍

But the main reason to invest in this ASX copper stock is the aforementioned positive production growth outlook. It explains:

A key pillar of the investment case for Capstone is its multiple growth options – we forecast the company to lift annual production to almost 400,000 tonnes by CY29 from expected CY24 production of circa 190,000 tonnes – in an industry where the opportunities to increase output are hard to come by. ‍

The second pillar of our thesis is our positive view on the copper price – our latest commodity price review incorporates a long-term copper price of US$5 a pound, up from circa US$4.00 a pound currently. ‍ Lastly, current pricing level puts Capstone shares on a price-to-net present value multiple of just 0.9x.

Big returns

Ord Minnett recently initiated coverage on the ASX copper stock with a buy rating and $13.00 price target. Based on its current share price of $10.10, this implies potential upside of 29% for investors over the next 12 months.

Should you invest $1,000 in Capstone Copper right now?

Before you buy Capstone Copper shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Capstone Copper wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 6 March 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Materials Shares

Business people standing at a mine site smiling.
Materials Shares

Is this beaten down lithium share now in the buy zone?

Mineral Resources has sunk amid an array of bad press. Has that created a buying opportunity or is there more…

Read more »

Man jumps for joy in front of a background of a rising stocks graphic.
Materials Shares

Guess which ASX lithium stock is jumping 10% on big news

What is getting investors excited today? Let's find out.

Read more »

CSR share price rising asx share price represented my man in hard hat giving thumbs up
Materials Shares

Should I buy Rio Tinto or BHP shares?

Which of these mining giants do analysts think would be the best to buy? Let's find out.

Read more »

A miner stands in front of an excavator at a mine site.
Materials Shares

Why are Boss Energy shares surging 7% higher today?

Boss Energy shares continue their stunning run today.

Read more »

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Materials Shares

Guess which ASX mining stock is jumping 11% on big news

Investors are celebrating another big announcement this morning.

Read more »

A young man goes over his finances and investment portfolio at home.
Materials Shares

Should you buy, hold, or sell Liontown shares?

Do analysts think that now is a good time to invest? Let's find out.

Read more »

A lion dressed in a business suit roars as two sheep sit awkwardly at the boardroom table.
Materials Shares

Liontown share price roars higher on half year results

This lithium miner has handed in its report card on Friday.

Read more »

A man wearing a shirt, tie and hard hat sits in an office and marks dates in his diary.
Materials Shares

The Rio Tinto share price 'remains undervalued' and could rise 20%+

Goldman Sachs thinks this mining giant is being undervalued by the market.

Read more »