Many people have been asking about current thoughts on the copper market, the recent price drop of the red metal and what next steps are for CopperBank. We are keenly assessing other opportunities in the copper development space during this trade war inspired lull in the copper price. This brilliant Benjamin Graham graphic clearly depicts how we feel about epic bear markets with respect to established, well situated copper development projects (feel free to share.)
What exactly did CopperBank acquire with the Copper Creek project?
As for the copper price, what on earth is going on? The fact remains, unless there is a calamity in the global financial situation, the copper market is already in a deficit. This will only be exacerbated as the world goes back to work. Auto manufacturers are re-opening factories after the Summer break. Fabricators will, eventually, stop buying feed-in materials like copper hand-to-mouth. And the hyenas that hypothecate trade war tensions will go find something else to do.
The Copper market will be in deficit- this year, next year and the year after that. This reality will be more and more pronounced in the coming quarters and years. Remember, the next THREE years, there are no large mines (greater than 100kts of annual yield) coming on-line after Cobre Panama this year. Not in 2019, 2020 or 2021. Meanwhile, and due to increased electrification, the CAGR growth rate for copper should be steady, or even about historical averages and as high as 5%.
We continue to favour the optionality + growth and exploration upside in established, well situated copper projects much like those owned or controlled by CopperBank.
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