Supply & Demand Dynamics in the Copper Market
ฝัง
- เผยแพร่เมื่อ 2 ส.ค. 2024
- Recording date: 10th April 2024
The Battery Show (Copper Bottomed, Episode 14)
Copper and gold prices jump again, heralding a junior resources market resurgence. But look! Micro-cap equities have barely moved in the last week, whereas the plus $300 million market cap companies have all posted significant gains. As liquidity returns to the sector it is the bigger companies that benefit the most in the early stages.
Merlin also looks at the build history of the twenty largest copper mines. A golden period of construction 1990-2009 emerges. The heyday of modern western capitalism. Since the Global Financial Crisis, even with ultra-low cost of capital, China has led the way in construction. The implication is that deep, lower-grade ore-bodies need much higher incentive prices to stimulate build decisions. US$15,000-20,000 is likely (that’s $6.82-9.09/lb in old money). Current prices are $9342/t or $4.25/lb.
A rattle through four weeks of exploration results follows. Merlin reviews news releases from Entrée Resources, McEwen Mining, Metals Acquisition, Gladiator Metals, Pampa Metals and Abitibi Metals - all appearing for the first time. He also talks through follow-up drilling results from T2 Metals and Emerita Resources.
Go Copper, Go Explorers!
00:00 - Introduction and Copper Market Update
01:47 - Supply & Demand Dynamics in the Copper Market
07:44 - Copper Explorers and Weekly Summaries (07:44 - 09:10)
09:10 - Entree Resources
13:01 - McEwen Mining Inc
16:05 - T2 Metals
17:19 - Gladiator Metals
19:17 - Pampa Metals
21:28 - AbraSilver Resource Corp
22:35 - Emerita Resources
26:12 - Metals Acquisition Limited
29:24 - Conclusion and Market Observations
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Thank you for doing this, very informative
is a shaggy dog good or bad lol?
Entree warts are its history with RIO. If they do win arbitration they will pop lots higher.
Rio won't proceed further in artibtration... Entree AGM was just cancelled just after the close Friday.... speculation is a special meeting of shareholders will be needed to vote on an offer
@@KEVINGARSKI Well this might get interesting long before I figured. Best of luck. I only have a small piece as a reminder of my TRQ fleecing days.
Greetings Merlin,
I am a venture capitalist specializing in exploring and producing high-grade copper ore or concentrate. The demand for copper has increased significantly over the past two years, and we are witnessing it firsthand. While there is no shortage of buyers, there is already a significant shortage of suppliers.
I believe the price of copper will rise to $15K and eventually to $20K. There are many factors to support this forecast, but I do not have enough time or space to mention them all. However, I can say that most copper producers are decreasing production due to lower grades. Additionally, no junior mining companies are coming into production in the next three to five years capable of producing over 100K MT of Cu concentrate. Nevertheless, the world wants more and more copper.
My sense is that in the longer term, between 5 to 7 years, once the world faces a copper deficit of several million MT annually, copper prices will rise above $50K per MT.
@@thewonderof06790 Instead of simply postponing the AGM, why cancel it after the close on a Friday. Some have speculated that "you expect never to hold an AGM"....friend of mine goes on furtther... "So I say we see a halt followed by … drumroll … a simple all cash offer from Rio Tinto to buy out ETG tomorrow." refering to Monday April 15
Brilliant work Merlin .. from Australia.. "blue horse shoe" likes Glencore.