As Penny Production Ends, Copper Bonds Show Selective Strength, Says Gimme Credit
NEW YORK, Nov. 24, 2025 /PRNewswire/ -- As the U.S. retires the penny, Gimme Credit offers a pocket full of insights on the copper sector. According to its expert team of corporate bond analysts, copper is entering a pivotal phase marked by rising long-term demand, tightening supply fundamentals, and widening performance dispersion among major global producers. Despite isolated operational setbacks across the industry, analysts maintain a generally constructive outlook on copper bonds, supported by refinancing progress, stronger liquidity positions, and attractive spreads for selective issuers.
Company Highlights
First Quantum Minerals: Credit improvement expected as Kansanshi S3 ramps up and Cobre Panamá targets a 2026–2027 restart. Strong liquidity and debt reduction support a Buy on the 8% 2033 notes.
Southern Copper: Strong first-half 2025 results and progress on major Peru and Mexico projects. Despite tariff-related disruptions and elevated investment spending, analysts expect the balance sheet to remain strong.
Freeport-McMoRan: Grasberg mud-rush impacts will curb Indonesian output through 2027. Exceptional liquidity but near-term bond underperformance drives an Underperform on the 2034 notes.
Teck Resources & Anglo American: Merger forming "Anglo Teck" will create the world's fifth-largest copper producer. Teck's investment-grade profile supports a reaffirmed Stable (0) score.
Anglo American: Strong half-year results and continued progress on portfolio restructuring, including advancement of the De Beers separation and the Teck merger.
Codelco: Post-earthquake production cuts and rising costs heighten execution risk. Recovery expected to be gradual.
Antofagasta: High-quality assets, a robust project pipeline, and a solid balance sheet position the company to weather tariff volatility and benefit from strong copper and gold markets.
Sector Outlook
Gimme Credit expects tightening supply, electrification-driven demand growth, and improving balance sheets to underpin the copper sector. While operational risks remain, selective copper bonds offer compelling yield opportunities in an increasingly supportive long-term environment.
Gimme Credit provides independent corporate bond research and data to aid investors and traders with critical and timely insights into an organization's investment potential. Since 1994, customers have relied on our decisive buy/sell recommendations to provide in-depth guidance when determining which fixed-income securities offer the most opportunity. Gimme Credit's clients include brokerage firms, corporations, financial advisors, investment managers and traders. Company research is regularly featured in esteemed media such as Barron's, Bloomberg, WSJ and more.
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