High metal prices and by-product gains increasing copper miners’ margins

The margins of copper miners are at multi-year highs on the back of high copper prices, elevated by-product prices, and record low treatment and refining charges (TC/RCs).

Why are copper miners’ margins so high?

The first and strongest factor is that copper prices themselves are at all time highs and were elevated for much of 2025. Copper prices averaged $9,954/t in 2025 – the highest annualised price ever. By the start of 2026, copper prices had surpassed $13,000/t.

Prices have been consistently high due to tariff fears, supply disruption, and also continued expectations of increasing demand based on new uses related to AI and the energy transition.

By-product gains are helping copper miners significantly, especially gold and silver. Gold and silver prices also pushed up across 2025 on fears surrounding the US dollar, due to their position as safe haven assets.

Silver prices averaged $40/tr.oz. and gold averaged $3,445/tr.oz. in 2025, against $29/tr.oz. and $2,390/tr.oz. respectively in 2024. This large increase in precious metals prices significantly increased the by-product gains available to miners.

Copper mining companies have also benefited from record-low TC/RCs which act as a discount on the copper price when miners sell concentrate to traders and smelters. Such low discounts mean miners keep more value.

Will increased margins encourage copper mine build out?

The higher the margins copper miners can get, the more appealing copper mining becomes. However, mining remains a challenging and long-term industry with a relatively high barrier to entry even with improved margins. Mining is also competing for capital allocation against a number of other higher return industries such as AI.

Join Benchmark's upcoming webinar on 24th February at 3pm (London) for in-depth analysis of what elevated copper prices mean for profit margins, new projects, and M&A trends on a global scale.

Sign up to the webinar here: Copper Prices Unpacked: What peak margins mean for profits, projects and M&A