Epiroc is the world's leading manufacturer of mining and rock excavation equipment — drill rigs, loaders, rock tools and automation systems used in underground and surface mines globally. Spun off from Atlas Copco in 2018, Epiroc has a pure-play focus on mining and quarrying that makes it one of the most reliable expressions of the copper price cycle in the Signycle universe.
Why Copper Drives Epiroc
Approximately 50–60% of Epiroc's equipment revenues are sold to copper and gold mines. When LME Copper falls below $5,000/tonne, mine operators slash their sustaining and development capex — including equipment purchases. Drill rigs are deferred, loader fleets are not replaced, and Epiroc's order intake collapses. When copper recovers above $9,000/tonne, the investment pipeline reopens simultaneously across its global customer base.
Epiroc's aftermarket parts and service business (generating approximately 60% of revenues) provides a meaningful earnings floor that prevents order intake cyclicality from translating fully into earnings cyclicality — making it a less volatile copper cycle expression than pure miners like Glencore.
The 2016–2018 Copper Cycle: +109% in 29 Months
LME Copper fell below $5,000/tonne in January 2016. At the time, the Epiroc business was still part of Atlas Copco — whose mining division fell sharply in the same period. The copper recovery drove Atlas Copco's mining orders strongly, and when Epiroc was spun off in June 2018 at SEK 115, the cycle return from the January 2016 trough was +109% in 29 months.
Epiroc vs. FLSmidth
Both Epiroc and FLSmidth use the copper signal and supply equipment to mining companies. Epiroc's mobile equipment (drill rigs, loaders) has shorter lead times and faster order-to-revenue conversion than FLSmidth's fixed process plants — making Epiroc a faster-responding copper cycle expression. For investors seeking early-cycle exposure, Epiroc is preferred; for late-cycle, FLSmidth's longer project cycles provide more sustained revenue recognition.
Key Risks
Epiroc's main risks are concentration in copper and gold mining (which account for the majority of revenues), competition from Sandvik (its former sister company) and Komatsu, and the long-term impact of mine automation on equipment unit volumes. Epiroc is itself a leader in mine automation — which provides both an opportunity and a risk of cannibalising its own equipment sales.
Cycle Performance Summary
| Parameter | Value |
|---|---|
| Exchange | Nasdaq Stockholm |
| Buy date | January 2016 |
| Buy price | SEK 55 |
| Sell date | June 2018 |
| Sell price | SEK 115 |
| Return | +109% |
| Duration | 29 months |
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