As the mining season heats up, traders and investors eagerly await the summer drill results from junior mining companies. With President Joe Biden’s Inflation Reduction Act and a focus on minerals critical for the energy transition, copper’s significance in producing clean energy has drawn attention.
At the Prospectors and Developers Association Conference (PDAC), experts emphasized copper’s essential role in the energy transition, predicting a surge in its value over the next decade. As demand for copper rises, small copper miners become crucial players in supplying the mineral for electric vehicle batteries, renewable energy infrastructure, and more.
Sprott Junior Copper Miners ETF (COPJ) offers investors a unique opportunity to track mid-, small-, and micro-cap companies in copper-mining related businesses. It corresponds to the total return performance of the Nasdaq-listed Sprott Junior Copper Miners Index, making it the sole pure-play ETF focusing on small copper miners.
COPJ’s top holdings include ERO Copper Corp. (ERO), Hudbay Minerals Inc. (HBM), and Ivanhoe Electric Inc. (IE), showcasing the ETF’s strength in the market.
Technical Analysis: COPJ’s chart reveals a strong uptrend within a rising channel pattern since May 5. Consistently forming higher highs and higher lows, the ETF’s recent higher low was at $19.90 on July 24, while the most recent higher high reached $21.50 on July 15.