For the development of industrial metals, it is always important how the economy in China develops.
In principle, industrial metals react sensitively to economic developments. Although the strict lockdowns in China are a thing of the past, economic growth there is still not particularly pronounced. The copper price is also suffering as a result. However, there is hope. Chinese stimulus measures are already showing initial effects, especially in the real estate and construction sectors. Industry experts expect new construction business to increase and thus demand for industrial metals such as copper to rise. This is because the sale of houses is already picking up, and new construction should follow, thus leading to a comeback of the Chinese real estate market. Targeted aid will also benefit the copper sector.
The sale of electric cars is being promoted, as is the infrastructure network for them. And electromobility and the push for green energy are gobbling up large quantities of copper. On the supply side, copper production in Chile, the main producing country, is still suffering. One cause is a lack of water. After all, mining operations in Chile are mostly located in the north, where there are droughts and little water. In addition, ore grades are falling, and deeper and deeper searches have to be made for the reddish metal, which has an impact on costs. The demand caused by the energy transition will probably mean that supply will not be able to keep up with demand. Copper and also gold are owned by Aurania Resources and GoldMining in their projects.
In South America, Aurania Resources - https://www.commodity-tv.com/ondemand/companies/profil/aurania-resources-ltd/ - focuses on precious metals and copper. Aurania Resources' exciting The Lost Cities gold-copper project is located in Ecuador.
GoldMining - https://www.commodity-tv.com/ondemand/companies/profil/goldmining-inc/ - is financially strong and has a large block of shares in Gold Royalty in its portfolio, in addition to gold and gold-copper projects in North and South America. Gold Royalty is a royalty company and a wholly owned subsidiary of GoldMining.
Current corporate information and press releases from Aurania Resources (- https://www.resource-capital.ch/en/companies/aurania-resources-ltd/ -) and GoldMining (- https://www.resource-capital.ch/en/companies/goldmining-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.
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