April 20th, 2026 | 08:35 CEST
Copper Rally: How BYD Is Suffering as a Consumer – and Why Power Metallic Mines & Freeport McMoRan Are Cashing In Now
The global energy transition, e-mobility, and the AI boom are causing copper demand to skyrocket. At the same time, supply is shrinking: aging mines, declining ore grades, and years-long exploration times for new deposits. This gap between structurally rising demand and production that can barely be expanded is fueling the debate about a commodities supercycle. Those who build the right positions now could benefit disproportionately. It is precisely in this context that a closer look at three companies is warranted: BYD, Power Metallic Mines, and Freeport McMoRan.
time to read: 4 minutes | Author: Armin Schulz
ISIN: BYD CO. LTD H YC 1 | CNE100000296 , POWER METALLIC MINES INC. | CA73929R1055 | TSXV: PNPN , OTCBB: PNPNF , FREEPORT-MCMORAN INC. | US35671D8570
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Author
Armin Schulz
Born in Mönchengladbach, he studied business administration in the Netherlands. In the course of his studies he came into contact with the stock exchange for the first time. He has more than 25 years of experience in stock market business.
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BYD: Between Copper Hunger and Global Growth
Every electric BYD vehicle consumes between 60 and 80 kg of copper, most of it in the battery, with the rest in cables and power electronics. Multiply this figure by the Chinese conglomerate's annual production numbers, and the required quantities quickly add up to several hundred thousand tons. Add to that the additional demand for charging stations and the company's own battery cell production. To understand the full picture, one must view this hunger for raw materials as an integral part of BYD's history. It is both a curse and a blessing for further expansion.
International business has long been acting as a silent savior, while the home front is faltering. In the first quarter of 2026, exports already accounted for 40% of total sales. Brazil, the Emirates, and the UK are gaining momentum in particular. The company's own production facilities in Hungary and Turkey are intended to cushion the impact of trade barriers. At the same time, the domestic market is crumbling: the seventh consecutive monthly decline is a fact, and Tesla has once again overtaken BYD as the world's largest pure-play electric vehicle manufacturer. Profits fell in 2025 for the first time in four years.
Technologically, the group remains ambitious. The second generation of the Blade Battery and the planned 6,000 fast-charging stations outside China by the end of 2026 address the biggest weakness of e-mobility: the charging infrastructure. At the same time, the company is working on solid-state cells for the premium segment, while sodium-ion batteries are intended to power the more affordable models. For investors, the key question remains whether margins abroad can permanently offset domestic losses. The answer will come with the quarterly figures at the end of April. The stock is currently trading at EUR 12.174.
Power Metallic Mines: Drilling Data Speaks For Itself
Power Metallic's drilling results are among the best the sector currently has to offer. Over 16 m with 15% copper equivalent (CuEq) is not an everyday announcement. Yet the market is reacting with strange restraint. It appears many investors are finding it difficult to grasp the scale of this orthomagmatic deposit. There are only about two dozen comparable polymetallic deposits worldwide, including Norilsk and Sudbury, both of which are extremely profitable mines. Within 75 drill holes, Redcloud analysts counted 98 intervals longer than 11 m with over 4.5% CuEq. This is a systematic pattern, not a one-off.
The April 15 announcement provides fresh evidence. Drill hole PML-26-050 intersected 4.76 m with over 10% CuEq, confirming the eastern edge of the high-grade zone. Hole PML-26-052 returned 4.35 m with nearly 6% on the western side. Added to this is the Elephant Zone with gold discoveries and the as-yet-unexplained geophysical anomalies. These are all indications of a larger system that has not yet been fully mapped. The consistency of the results across dozens of drill holes remains the real signal for patient investors.
What the metallurgical tests by SGS show further underscores the economic potential. Recovery rates average 95%. Broken down, they are 98.9% for copper, 93.9% for palladium, 96.8% for platinum, 85% for gold, and 88.9% for silver. Originally, only 80% had been anticipated. The market has barely priced in this significant improvement so far. With the Preliminary Economic Assessment (PEA), announced for the fall, these figures will be translated into robust data for the first time. This could be the moment when many investors change their minds, and a revaluation takes place. The stock is currently trading at CAD 1.17.
Freeport McMoRan: Setting a Strategic Course
The copper producer has recently sent clear signals that it has not forgotten its shareholders. The quarterly dividend of USD 0.15 per share consists of a base amount and a variable component. This signals confidence, especially since the operating margin is generous thanks to high copper prices. First-quarter results are due at the end of April. Analysts expect an average of USD 0.66 in earnings per share on USD 6.4 billion in revenue. However, unit costs have recently risen by over 30%. This is a point to keep in mind. Overall, however, profitability remains intact.
Market sentiment is clearly optimistic. Goldman Sachs, JPMorgan, and BofA have recently raised or confirmed their ratings. Price targets range between USD 70 and USD 81. The reasons lie in electrification, the expansion of data centers, and rising defense spending. Added to this are the new US import tariffs on copper, which weaken foreign suppliers. For domestic producers like Freeport, this is a clear competitive advantage. It should be noted that analysts' targets still see upside potential.
The Grasberg mine in Indonesia is home to one of the largest copper and gold deposits in the world. Following an operational incident last year, production is expected to return to 85% of normal capacity in the second half of 2026. An agreement with the government secures operating rights through 2061. In return, USD 20 billion in investments will be made over two decades. Additionally, a further 12% stake in the local subsidiary PT-FI will go to the state. This provides planning security—even if the company's own stake shrinks. Currently, one share costs USD 70.21.
The copper rally reveals clear winners and losers. As a major consumer, BYD is suffering from surging raw material costs and can only partially offset weak domestic sales through exports. Power Metallic Mines, with exceptional drilling results and high recovery rates, provides proof of a world-class project that the market has not yet adequately valued. Freeport McMoRan, on the other hand, is reaping substantial rewards thanks to high copper prices, strategic cost advantages from US tariffs, and long-term planning certainty in Indonesia. The structural supply shortage remains intact.
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