The month of September has been very beneficial for investors of Hindustan Copper. India’s only complete -owned copper producer, this government company has performed brilliantly in the stock market in the last few days. This month alone its shares have given more than 40% return. In Thursday’s trading, Hindustan Copper shares also saw tremendous fast and it rose 7% to ₹ 330.40.
Because of the rapid rapid shares of Hindustan Copper?
There are many strong reasons behind this fast. The biggest reason is the rapid increase in international copper prices. Recently, copper prices at the London Metal Exchange (LME) reached the 15 -month high of $ 10,400 per metric tonnes. The main reason for this is a major accident in Indonesia’s Grasberg mine, which has disrupted the global copper supply.
The accident has disrupted supply from the world’s second largest copper mine. As a result, there is a possibility of copper deficiency in the market, which has led to a rise in prices. Copper is an important metal used in areas such as electronics, renewable energy and artificial intelligence. The demand remains strong, but supply fluctuations have increased prices.
How did Hindustan copper benefit?
Hindustan Copper is the only Indian company that manages the entire process of production of copper from mining to refinement. When copper prices rise in the international market, the company’s revenue and profit increase. In addition, the company has recently renewed its mining lease for the Rakha Copper mine in Jharkhand for the next 20 years. This means that the company can now resume production from this mine, which will increase its production capacity and revenue.
What are the indications for investors?
So far in September, the shares of Hindustan Copper have given a return of about 40%. If this speed continues by the end of the month, it will be the biggest monthly lead since December 2023. In December 2023, it rose by about 58%. In addition, the company has recently signed an agreement with Oil India, under which the two companies will work together in the exploration and development of copper and other important minerals.