Copper is undergoing a profound structural shift. After years of cyclical trading, it’s broken out, driven by an irrefutable reality: the world simply doesn't have enough of it to meet future demand.
For investors, the narrative is shifting from a standard cyclical play to a potential long-term macro investment, based on supply demand dynamics.
This backdrop creates a compelling opportunity for ASX-listed miners, particularly those capable of bringing new, long-term supply online in tier-one jurisdictions like Australia.
The Macro Picture: What is driving the deficit?
According to recent insights from J.P. Morgan’s Global Research team and Goldman Sachs' 2026 Commodities Outlook, the copper market is entering a prolonged period of structural deficit.
The Demand Shock
- The market looks to be re-rated by two converging megatrends, the global transition to renewable energy and the explosion of AI.
- Goldman Sachs has highlighted copper as the ultimate critical transition metal.
- The sheer copper intensity required for power grid modernisation, EV infrastructure, and the rapid deployment of AI data centres has created unprecedented demand growth that traditional supply chains cannot satisfy.
- J.P. Morgan notes that data centre demand alone could add roughly 475,000 tonnes to global consumption in 2026.
Supply Disruptions and Inelasticity
- While demand is surging, the supply side is faltering.
- J.P. Morgan projects a global refined copper deficit of roughly 330,000 metric tons in 2026.
- This shortfall is impaired by severe disruptions at major global mines, such as the Grasberg mine in Indonesia and the Kamoa-Kakula operation in the DRC, along with a lack of new discoveries.
The Lack of New Discoveries
- Finding large, economically viable copper deposits is becoming incredibly difficult, and the lead time from discovery to production often spans over a decade.
- To leverage the economics of lower-grade tier-one deposits, miners need massive scale, which is hard to come by.
- However, as copper price increases, more mines become viable as economics change.
The Case for a Sustained Copper Rally
Both Goldman Sachs and J.P. Morgan remain highly bullish on this commodity.
J.P. Morgan anticipates the rally will continue, pushing prices to average $12,500/mt by the second quarter of 2026. Goldman Sachs echoes this sentiment, naming copper its preferred long-term base metal, noting that the market is entering 2026 with critically low inventory levels that provide minimal buffer against supply shocks.
Look at majors like BHP Group (ASX: BHP) and Rio Tinto (ASX: RIO).
BHP recently reported that copper is now the leading revenue generator for their business, surpassing iron ore, a fact evident in their aggressive M&A strategies.
Rio is allocating over 85% of its exploration budget toward the metal, and even Fortescue (ASX: FMG), supposed iron ore “specialists”, took over Alta Copper earlier this year, looking to jump on the trend.
The old market adage is to “follow the big money,” or at least watch how they’re allocating it.
This sends a clear signal to the broader market about how the heavyweights are setting up for the future.
Which ASX Stocks Might Benefit?
Project: Lady Loretta, Rocklands and Mt Kelly, Queensland
Status: Mid-Tier Producer / Expanding Operations
Why they benefit:
- Production Acceleration: Austral is uniquely positioned as an existing producer of LME Grade A copper cathode. The company recently exceeded its production highs despite adverse weather conditions, providing immediate cash flow and leverage to higher copper prices.
- Massive Funding Injection: Austral just secured a $65 million capital raising, anchored by a $15 million commitment from the Queensland Investment Corporation (QIC) Critical Minerals and Battery Technology Fund. This cleans up the balance sheet and provides financial flexibility to be aggressive in capital allocation for growth.
- Strategic Processing Advantage: Controlling the Mt Kelly processing facility allows Austral to produce finished, LME Grade A copper cathode directly on-site. This eliminates their reliance on third-party smelters, maximizes profit margins, and establishes them as a key processing hub in the Mt Isa district.
Project: Briggs Copper Project, Queensland
Status: Advanced Exploration / Prefeasibility
Why they benefit:
- Tier-One Scale: Briggs is one of Australia’s largest undeveloped copper projects, boasting a Mineral Resource Estimate of over 2 million tonnes of contained copper metal. In a market desperate for long-life supply, assets of this scale in tier-one jurisdictions are unique.
- Favourable Economics: Recent metallurgical test-work has been highly promising, indicating up to 95% copper recovery. The deposit's geometry is ideal for a low-cost, open-pit mining operation, providing robust leverage to rising copper spot prices.
- Momentum: Alma is aggressively advancing the project. Having recently completed a positive Scoping Study, the company is diving straight into a Prefeasibility Study (PFS) and is currently rolling out an extensive 2026 infill drilling campaign to expand its high-grade resource footprint.
Other ASX Listed Exposure
Other interesting copper stories to watch include:
Kincora Copper (ASX: KCC), which is actively drilling out its highly prospective Trundle project in NSW's world-class Macquarie Arc porphyry belt, in the same region as the world-class Northparkes mine. Kincora’s strategy is to be partner-funded with earn-in agreements to keep capital flowing and minimizing shareholder dilution.
Antipa Minerals (ASX: AZY) provides compelling leverage through its advancing Minyari Gold-Copper Project in WA, which is currently progressing through a Prefeasibility Study. Close to tier-one mines such as Newmont’s Telfer project, Mineral Resource of 3.3M oz AuEq and well-funded $51M CoH to start the year.
Additionally, highly active explorers like Carnaby Resources (ASX: CNB) and Hammer Metals (ASX: HMX) hold highly prospective copper tenure in the prolific Mt Isa region, providing significant discovery upside for investors.
