What is good for the goose is......NEW YORK (CBS.MW) -- Top copper stocks shot up Friday after spot-market copper prices reached their highest intraday levels since early 1989 on the London Metal Exchange.
Among top U.S. copper producers, Freeport McMoRan Copper & Gold (FCX: news, chart, profile) closed 89 cents higher at $41.99, and Newmont Mining (NEM: news, chart, profile) gained 65 cents to $46.25.
American depositary receipts of Australia's BHP Billiton (BHP: news, chart, profile) fattened 9 cents to $21.80.
Canada's Placer Dome (PDG: news, chart, profile) gained 79 cents to $20.71.
Copper for three-month delivery hit $3,115 per metric ton in intraday London trades, a level not seen since March 1989.
Copper stocks and spot market prices in recent sessions overall have benefited from growing demand for the metal in China and the state of Florida, which needs heavy rebuilding following recent hurricanes.
Strong copper prices also reflect a near-dearth of new mining projects and low global inventories.
"There's a deficit in the world of copper coming on stream," Frank Holmes, chief investment officer at U.S. Global Investors, said. "There are no new mines basically to 2008 of any substance that can put a dent in commodity prices."
"And we went to a five-year drought of under-exploration development of the world's deposits, and it takes 10 years from their discovery to get any copper out and these are billion-dollar projects," Holmes said.
On Thursday, Freeport McMoRan announced a 25 percent increase in its common share dividend to $1 a share.
Chief Executive Richard Adkerson said continued strong metals prices would allow the company to consider additional dividend increases and stock buybacks in coming months.
Goldman Sachs said the dividend announcement should not have been a surprise to investors, and expects Freeport McMoRan to raise dividend levels again next year.
The firm also predicts 2005 will be a record year for the company.