Tiny Copper ETF Rockets 109% as AI Data Centers Fuel Mining Boom

"The Sprott Junior Copper Miners ETF ( NASDAQ:COPJ) posted a 109% gain in 2025, turning a $37 million fund into one of the year's top performers. Investors who bought in early 2025 around $18 saw shares close near $39. COPJ's equal-weighting strategy across roughly 50 copper mining companies meant every position from exploration-stage juniors to small producers participated. When copper prices surged and smaller miners outperformed, the structure amplified gains beyond traditional market-cap weighted funds."

"The macro story for 2026 centers on whether copper prices can sustain momentum above $12,000 per metric ton on the London Metal Exchange. JPMorgan projects an average of $12,075 through 2026, citing data center demand as the primary driver. Every new AI training cluster, hyperscale data center expansion, and grid upgrade requires substantial copper for wiring, power transmission, and cooling infrastructure."

"Interest rate policy matters more for junior miners than established producers. These companies burn cash on exploration and development, making financing costs critical. If the Federal Reserve cuts rates in 2026, junior miners' ability to fund projects improves and their stocks typically respond positively. If rates stay elevated, development timelines extend and share dilution through equity raises becomes more likely."

COPJ returned 109% in 2025, turning a $37 million fund into a top performer and rewarding early-2025 buyers who saw shares rise from about $18 to near $39. The ETF employs an equal-weighting across roughly 50 junior and small producer copper companies, which amplified gains when copper prices surged and smaller miners outperformed. 2026 copper prospects hinge on sustaining prices above $12,000 per metric ton, with JPMorgan projecting about $12,075 driven by data center and AI infrastructure demand. Monthly ICSG supply-demand reports and interest rate policy will determine junior miners' financing prospects and stock reactions. COPJ assigns roughly 4.5% to each top holding.

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