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Gianni Kovacevic – “The Copper Market Is…”

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Gianni Kovacevic – “The Copper Market Is…”

 

 

 

 

 

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?  

 

  • Over $85 Million has been invested in this property, affording our team some 220,000 meters of historical drilling – 95% of the core is well organized at the project HQ.
  • Various technical reports have been completed in the past years, whereas our focus will be on this publicly available document – 2012 resource report completed by Independent Mining Consultants. You can find a copy here. We encourage readers to review the global resources on table 1-3 and carefully read our disclosure as this is historical information.
  • Our team will focus on various opportunities to accretively move this project forward – stay tuned!
  • This acquisition is the epitome of accretion. We issued 65 M CopperBank shares for Copper Creek. If we issued those shares to raise capital (at our current share price) what could we accomplish? What could any Jr. Mining Company accomplish?  

 

 

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.

 

 

 

 

 

Happy investing,

 

Posted August 28, 2018

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