Recording date: 29th February 2024
Major Supply Squeeze Coming in Copper
Fundamentally, copper markets look poised to face substantial global supply deficits in the coming years. As emerging explorers and developers race to provide new sources of production, substantial upside exists in copper mining stocks today before this pending supply squeeze fully materializes.
Many existing copper mines are aging, with ore grades declining over decades of exploitation. Yet copper demand keeps rising steadily thanks to decarbonization policies and rising electrification hitting energy infrastructure and consumer products worldwide. This demand picture conflicts harshly with the supreme lack of new large-scale copper projects in the development pipeline. The supply lag sets up for recurrent periods of spiking copper prices in the future as demand grows faster than additional mine capacity.
Several mining juniors profiled are advancing projects rapidly or finding high early grades that provide leverage to the pending copper bull run. Hot Chili for example continues expanding their major Coastal Copper resource in Chile, now over 1 billion tons. Meanwhile in Canada, both T2 Metals and Tribeca Resources are uncovering impressive grades that could augment resources substantially with tighter drilling.
Even copper majors like NGEx Minerals offer some protection but with muted upside, as their vast deposits expand potentially for years to come through multi-phase exploration like at the Los Helados project. Investors should evaluate their copper exposure based on risk tolerance, timeline expectations, and desired leverage to cyclical peaks. Fundamentally though, the winds are clearly at the back of copper exposure for those with some patience to ride out the likely turbulence ahead.
Hot Chili
Rapidly advancing major 1+ billion ton copper-gold project at Coastal Copper in Chile with over 300 million tons already at higher grades. Exploration and engineering moving project towards production.
Tribeca Resources
Early-stage explorer finding strong initial grades under shallow cover at Copper Gold project in Chile, recently extended strike length 40% through drilling.
Filo Mining
Majors advancing flagship Filo Del Sol deposit which contains high-grade feeds and continues to expand through extensive exploration like 5400m drilled in January. Massive scale bodes well for production lifespan.
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15 авг 2024
