AI drives demand: Three copper stocks for the boom - Freeport-McMoRan, Power Metallic Mines, and Aurubis!

Freeport-McMoRan: Copper price drives profits

Freeport-McMoRan is a major player in the copper sector. It is one of the world's largest publicly traded copper producers. The company had a turbulent year in 2025, marked by a serious operational setback but also by massive increases in commodity prices. This led to the Grasberg crisis in September 2025. A serious accident, known as a mud rush, occurred at the company's largest mine, causing masses of mud to flood into the tunnels. As a result, production collapsed dramatically. Operations in the affected blocks are still partially suspended. A gradual restart is not planned until the second quarter of 2026. There is still a long way to go before full capacity is reached again. Grasberg will not be operating at full capacity before 2027. The accident in Indonesia, combined with declining production in Chile, the largest producing country, caused a shortage in supply in 2025 and drove up copper prices.

Accordingly, the accident in Indonesia only caused a brief setback for the stock. Since then, the share price has almost doubled in USD terms. In recent weeks, it even reached a new all-time high, surpassing the seemingly eternal record high from 2008.

One reason for this was the strong figures. On the one hand, Freeport generated revenue of USD 25.9 billion in 2025 (+1.8% year-on-year). On the other hand, net profit rose disproportionately by 17% to around USD 2.2 billion. However, the fourth quarter was particularly convincing. Due to the high price of copper, Freeport clearly exceeded analyst expectations. This was achieved despite the fact that significantly less material was produced due to the accident.

Freeport-McMoRan is likely to benefit greatly from the boom in demand in the long term, thanks to its broad portfolio of copper mines. In addition to Indonesia, the company is well-positioned in its home country of the US, as well as in Peru and Chile. Incidentally, the company is also benefiting from the debasement trend, where investors shift away from the dollar toward hard assets such as gold. The group's copper mines produced 956,000 ounces of gold as a by-product last year. However, it is also clear that large corporations such as this one are largely dependent on the price of copper.

Power Metallic Mines: The company of commodity legends

When turning to page 3 of Power Metallic Mines' investor presentation, you will be overwhelmed by commodity legends. Power Metallic Mines brings together three well-known entrepreneurs and investors: Rob McEwen, CEO of McEwen Mining and former founder of Goldcorp, which was later acquired by Newmont. Robert Friedland, founder of Ivanhoe Mines and one of the most successful entrepreneurs in the commodities sector, also holds shares. Last but not least, Gina Rinehart, Australia's richest woman, is also on board. She acts as chairwoman and, since 1992, following the death of her father Lang, has been the leading figure at Hancock Prospecting, Australia's largest private company (iron ore, agriculture), as executive chairwoman. All three hold minority stakes in Power Metallic Mines and have supported the company with financing. Such a competent and financially strong team is rarely found in an exploration company.

The Canadian company's stock is currently considered quite hot. In 2025, it changed its name from Power Nickel to Power Metallic Mines, as the company has evolved from a pure nickel specialist to a major player in various critical raw materials. The flagship Nisk project in Québec now combines nickel with copper, platinum, palladium, gold, and silver, following new discoveries. This means it is classified as a polymetallic deposit. Investor interest is high because the prices of these metals are rising steadily, and geopolitics are making them sought-after minerals. As the US, Europe, and Japan attempt to build supply chains outside China's sphere of influence, the value of such deposits in secure jurisdictions such as Canada is increasing significantly. The stock also reflected this in 2024, when it increased nearly tenfold. After moving sideways in 2025, new highs were reached in January. The stock is now consolidating about 20% below that level, offering investors an attractive buying opportunity.

Power Metallic Mines is also delivering operationally. Drill results are currently being published on a monthly basis. In mid-February, for example, the company reported a drill hole of 8.40 meters with 8.05% copper equivalent from the Lion Zone. In addition, the management team led by CEO Terry Lynch delivered outstanding metallurgical results with extremely high recovery rates. For example, almost 99% of the copper contained was successfully extracted. This extremely high value underscores the quality of the deposit.

Power Metallic is likely to continue to deliver drilling results in the coming months, which can often be a short-term catalyst for the stock. With a market capitalization of just over CAD 300 million, the company is no longer one of the lightweights in the sector. However, it is still far from being a giant, leaving plenty of room for upside potential. Large polymetallic deposits are few and far between and quickly attract the attention of acquisition-hungry mining giants like Rio Tinto and BHP.

Aurubis: The German copper classic at an all-time high

With Aurubis, investors can essentially bet on the copper boom with a German stock. The Hamburg-based company is currently benefiting greatly from developments on the commodity markets. Since the beginning of the year, the share price has risen by around 40%, making it the second-best performer in the MDAX. A few days ago, it reached a new all-time high. This was helped by the fact that the annual general meeting on February 12 decided to increase the dividend to EUR 1.60 per share for the past year.

At the end of January, Aurubis had already raised its forecast for operating earnings before taxes (EBT) due to higher metal prices and strong demand for copper. Aurubis CEO Toralf Haag now expects operating EBT of EUR 375 to EUR 475 million for the fiscal year ending in September. Previously, only EUR 300 to EUR 400 million had been forecast.

Aurubis is actually known as a copper smelter. The Hamburg-based company purchases copper concentrates from mines worldwide. However, it also processes other metals such as gold. The ore is then processed into pure metals in Hamburg. The more ore available on the world market, the higher the fees Aurubis can charge. However, the company's cash cow is multi-metal recycling. Aurubis is Europe's largest recycler. Metals are extracted from electronic scrap, old cables, metal scrap, and industrial residues, which can then be sold to industry at high prices. The company not only recovers copper, but also extracts a variety of other by-products such as gold, silver, lead, nickel, tin, zinc, selenium, and tellurium.

As the stock is currently trading close to its all-time high, investors should wait for a correction. Since the end of September, the stock has gained more than 70%. This could lead to profit-taking in the coming weeks.

Thanks to high demand from the AI industry, massive investments in energy grids, and the electrification of many areas of society, demand for copper will continue to rise in the coming years. At least, that is how analysts see it. However, many old mines are producing less and less material or are even running dry. These structural trends are the basis for persistently high prices. Those who want to ride the wave will find two established stocks in Freeport-McMoRan and Aurubis that can benefit in the long term. However, both could face profit-taking in the short term. Power Metallic Mines, on the other hand, offers significantly higher potential as a larger commodity explorer. The company is supported by experienced and financially strong commodity investors and is likely to appear on the radar of potential buyers in the coming years!