Jefferies Maintains a Buy on Vale S.A. (VALE)

Vale S.A. (NYSE:VALE) is one of the best copper stocks to buy right now. On December 5, Jefferies analyst Chris LaFemina reiterated a Buy rating on Vale S.A. (NYSE:VALE) and set a $15.00 price target.

Separately, Vale S.A. (NYSE:VALE) announced on December 2 that its subsidiary Vale Base Metals signed an agreement with Glencore Canada for the joint evaluation of a potential brownfield copper development project at their adjacent properties in the Sudbury Basin.

Management reported that the agreement offers a framework to “explore significant synergies of mining both companies’ underground deposits via the existing shaft and infrastructure at Glencore’s Nickel Rim South Mine”. VBM and Glencore are intended to transition to a joint venture as equal project partners after the completion of the early work.

Vale S.A. (NYSE:VALE) further reported that the project proposes a deepening of Glencore’s existing mine shaft and the development of new drifts to allow access to nearby copper deposits, and is expected to produce 880 kt of copper over 21 years with a capital cost of about $1.6 billion to $2.0 billion.

Owing to the polymetallic geology of the Sudbury Basin, the companies would also produce gold, nickel, cobalt, PGMs and other critical minerals. The company expects the detailed engineering, permitting and consultation work to occur in 2026, and a final investment decision to roll out in the first half of 2027.

Vale S.A. (NYSE:VALE) produces and exports copper, pellets, iron ore, manganese, and iron alloys. Its operations are divided into the Energy Transition Materials, Iron Solutions, and Coal and Others segments.

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Disclosure: None. This article is originally published at Insider Monkey.