Copper prices climbed to new highs fueled by tariff risks. With China taking measures to boost demand, the red metal is likely to remain in limelight. Following stocks are among the best growth stocks to buy now
BHP Group Limited (ASX: BHP)
BHP Group Limited (ASX: BHP), on 21 January 2025 reported a strong operational performance for the half-year ending December 31, 2024, with significant growth in copper, iron ore, and steelmaking coal production. Copper production increased by 10%, with Escondida achieving a ten-year production record, offsetting the impact of a weather-related power outage in Copper South Australia. Iron ore shipments from Western Australia Iron Ore (WAIO) reached a record high, driven by supply chain improvements and the completion of major debottlenecking projects at the port. Steelmaking coal production from BMA operations grew by 14%, following the divestment of the Blackwater and Daunia mines.
BHP continues to expand its presence in future-facing commodities, particularly copper. The formation of Vicuña Corp. with Lundin Mining in January 2025 aims to advance the Filo del Sol and Josemaria projects in Argentina, considered some of the most significant copper discoveries in decades. Additionally, the Jansen Stage 1 potash project in Canada is now 63% complete, with first production expected by late 2026, while Stage 2 development is progressing in parallel.
BHP remains on track to meet its FY25 guidance, with multiple assets expected to achieve production in the upper half of their respective ranges. However, Copper South Australia’s guidance has been slightly reduced due to the weather-related power outage. The company maintains strict cost control measures and expects to deliver unit cost guidance across all assets. With a clear pathway for growth and strong momentum going into the second half of the fiscal year, BHP continues to strengthen its position as a leader in the global mining industry.
Sandfire Resources Limited (ASX: SFR)
Sandfire Resources (ASX: SFR), on 20 February 2025, reported a strong financial performance for the first half of the 2025 fiscal year, driven by increased copper production and disciplined cost management. Group Copper Equivalent production rose by 16% to 75.1kt, maintaining the company’s annual guidance of 154kt for the full year.
The company’s operational efficiencies led to improved cost performance, with Motheo’s underlying operating cost guidance reduced by 7% to $39 per tonne of ore processed. This reduction exhibits the operation’s growing economies of scale and a decrease in projected treatment and refining charges. At MATSA, underlying operating costs were maintained at $75 per tonne for the year, benefiting from a favourable exchange rate, which led to a 7% cost reduction in the second quarter.
Sandfire is one of the growing companies to invest in, as it witnessed a significant increase in profitability. Underlying EBITDA surging by 87% to $255.2 million, while underlying earnings improved by $85.7 million to reach $49.1 million. The company’s statutory net profit after tax was reported at $49.7 million, highlighting the impact of strong operational performance and cost efficiencies. During the period, Sandfire continued to invest in underground development at MATSA and accelerated development at Motheo’s A4 deposit, with total capital expenditure remaining steady at $98.4 million.
The company also increased its drilling activity in the Iberian Pyrite and Kalahari Copper belts as part of a broader strategy to extend the reserve life of MATSA and Motheo to at least 15 years within the next five years. This is expected to significantly enhance long-term production stability and operational resilience.
The company remains well-positioned to meet its full-year commitments despite the ongoing monitoring of weather conditions. Motheo continues to redefine the Kalahari Copper Belt, with unit cost guidance improving and a steady increase in production. The company’s ability to operate beyond its processing facility’s design capacity reinforces confidence in achieving sustained growth.
(Source: Company's Report)
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