Tom welcomes Gianni Kovacevic back to the show. Gianni discusses the copper mining business in depth. Copper has reached $4.00, and he anticipates that much higher prices will be necessary to encourage development. This bull market may become larger than the last China Supercycle, and he points out that many investors missed out on that cycle by selling too early.
The March 2020 crash briefly reduced demand, but it also caused many mines to shut down, constraining supply. Many copper-related industries are adding to their stockpiles because they forecast an improving market. Very little copper is stored as reserves, unlike other commodities like oil. Major copper producers and manufacturers of electrical products will see remarkable growth.
He explains the two different types of copper mining and the amounts of global production. Copper supply will be constrained for several key reasons, including declining grades. He says, “We’re past the low-hanging fruit phase of copper mining; everything is more difficult from here.”
He believes the major producers are now going to have to pay to find the resources. The number one jurisdiction in North America is Arizona and Nevada. However, it takes nearly twenty years from initial drilling to completion of a copper mine. Therefore the large producers will have to go after juniors with good properties with proven reserves.
He discusses CopperBank Resources and why they offer diverse exposure to the copper trend. He explains the grades and overhead involved in the copper mining industry. Financiers are going to want better margins before they approve new projects.
We’re close to the all-time high for copper, and once through it, we may see a mania phase. Copper is a massive opportunity for retail investors as an M&A phase can’t be that far off.
He discusses the rare earth markets, including scandium. Some of these rare earth metals are expecting growth by several multiples in the coming years. Lastly, he discusses the helium market, its uses, and how Desert Mountain discovered a high-grade helium deposit in Arizona.
He says, “If you’re not following the commodity markets closely, your likely going to miss out on some opportunities.”
Courtesy of Palisade Radio
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