10:43 AM EDT, 10/03/2025 (MT Newswires) -- RBC Capital Markets said Thursday that it maintained its base metals sector weight recommendation at overweight.

RBC said copper prices have risen to $4.70 per pound by the end of the third quarter following Freeport's shutdown of the Grasberg mine in Indonesia.

Within copper equities, RBC said valuations have materially improved, and the copper equities have outperformed the copper price, up 48% vs. 17%. Copper prices continued to be supported by a weaker US dollar, dwindling inventory levels, Chinese stimulus, and supply disruptions, RBC said.

RBC said the higher price environment has improved the valuation outlook of North American copper producers at 1.1x NAVPS and 6.4x EV/EBITDA.

"We see an attractive set-up for selected equities ahead of our positive medium-term outlook, with higher prices leading to solid free cash flow generation for select producers and still anticipate a period of higher prices required to incentivize the requisite supply to match demand," RBC said.

Price: 2.96, Change: +0.04, Percent Change: +1.37