The current weak copper price is likely to be only a brief interlude. Copper groups will benefit from demand in the long term.
Market observers expect infrastructure spending in China to increase. As a first step, the government in Beijing has already raised capital for this purpose. Government bonds worth the equivalent of a good 128 billion euros have been issued. The good thing for the copper market is that infrastructure is generally very copper-intensive. Demand for the red metal will therefore increase again. Whether this alone can be enough to compensate for the weakness in demand due to the current global economic downturn remains to be seen. Looking somewhat further into the future, however, copper demand will certainly increase. This is supported not only by positive growth rates in the emerging markets, above all India. The conversion of the economy and energy supply to regenerative energies will also result in a wave of copper demand. The major raw material companies have already understood this. Groups such as Glencore, BHP and First Quantum are already looking around and some have already become active.
Takeovers and investments are therefore likely to increase in terms of numbers and value in the coming weeks and months. For investors, this means stocking up in good time with the shares of companies with copper projects, which are certainly speculative. Promising companies from this sector are GoldMining and Gama Explorations.
GoldMining - https://www.commodity-tv.com/ondemand/companies/profil/goldmining-inc/ - has gold and gold-copper projects in North and South America. The portfolio includes share packages of Gold Royalty, of NevGold and of U.S. GoldMining.
Gama Explorations - https://www.commodity-tv.com/ondemand/companies/profil/gama-explorations-inc/ - owns 100 percent of the Tyee nickel-copper massive sulphide project in Quebec. It also has an interest in the Muskox lithium pegmatite project in the Northwest Territories.
Current corporate information and press releases from GoldMining (- https://www.resource-capital.ch/en/companies/goldmining-inc/ -) and Gama Explorations (- https://www.resource-capital.ch/en/companies/gama-explorations-inc/ ).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
Market observers expect infrastructure spending in China to increase. As a first step, the government in Beijing has already raised capital for this purpose. Government bonds worth the equivalent of a good 128 billion euros have been issued. The good thing for the copper market is that infrastructure is generally very copper-intensive. Demand for the red metal will therefore increase again. Whether this alone can be enough to compensate for the weakness in demand due to the current global economic downturn remains to be seen. Looking somewhat further into the future, however, copper demand will certainly increase. This is supported not only by positive growth rates in the emerging markets, above all India. The conversion of the economy and energy supply to regenerative energies will also result in a wave of copper demand. The major raw material companies have already understood this. Groups such as Glencore, BHP and First Quantum are already looking around and some have already become active.
Takeovers and investments are therefore likely to increase in terms of numbers and value in the coming weeks and months. For investors, this means stocking up in good time with the shares of companies with copper projects, which are certainly speculative. Promising companies from this sector are GoldMining and Gama Explorations.
GoldMining - https://www.commodity-tv.com/ondemand/companies/profil/goldmining-inc/ - has gold and gold-copper projects in North and South America. The portfolio includes share packages of Gold Royalty, of NevGold and of U.S. GoldMining.
Gama Explorations - https://www.commodity-tv.com/ondemand/companies/profil/gama-explorations-inc/ - owns 100 percent of the Tyee nickel-copper massive sulphide project in Quebec. It also has an interest in the Muskox lithium pegmatite project in the Northwest Territories.
Current corporate information and press releases from GoldMining (- https://www.resource-capital.ch/en/companies/goldmining-inc/ -) and Gama Explorations (- https://www.resource-capital.ch/en/companies/gama-explorations-inc/ ).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
