Although the US dollar is showing strength, metal prices are anything but weak. Nickel costs more than 20,000 US dollars per tonne and copper rises to soon 10,000 US dollars per tonne.
Industry experts have noted that the copper supply is increasing only slowly. Many of the large copper producers have corrected their production forecasts downwards. These include Anglo American, Freeport-McMoRan, Rio Tinto, Vale or Antofagasta, among others. The big players in the copper sector account for around 57 percent of global copper supply. In the September quarter, their production volumes rose by a meagre 0.9 percent compared with the same time last year. Overall, the copper supply can thus be described as tight.
The demand for the reddish metal is increasing worldwide. When the economy really picks up again, which will happen sooner or later, demand for the industrial metal copper will increase. A deficit is generally expected on the copper market for the next five to ten years. One of the large companies that expect a significant decline in production during this period is Codelco, for example. By 2025, production from its current mines is expected to fall by 40 percent, and then by 76 percent by 2030, unless it invests heavily in further exploration. But that would require a higher copper price. Because the ore reserves are gradually being exhausted.
The copper price has recovered recently. The reduced production processes in China's metal refineries have also contributed to this. This is because copper production consumes a lot of energy, which is in short supply in China right now. The fact that mine production will grow by an estimated 3.9 percent in 2022 due to new mines could cause supply to rise again, but this is unlikely to hinder copper's success as a commodity. Since it should probably only be a temporary supply surplus.
Companies that focus on copper in addition to gold include GoldMining and Osisko Gold Royalties.
GoldMining - https://www.youtube.com/watch?v=aISY98SqIoE - has a nice portfolio of gold and gold-copper projects, as well as royalties in the US, Canada, Brazil, Colombia and Peru.
Osisko Gold Royalties - https://www.youtube.com/watch?v=_SizoaUxgcc&t=64s -, as a royalty company, brings diversification right along with it.
Current corporate information and press releases from GoldMining (- https://www.resource-capital.ch/en/companies/goldmining-inc/ -) and Osisko Gold Royalties (- https://www.resource-capital.ch/en/companies/osisko-gold-royalties-ltd/ -).
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/
Industry experts have noted that the copper supply is increasing only slowly. Many of the large copper producers have corrected their production forecasts downwards. These include Anglo American, Freeport-McMoRan, Rio Tinto, Vale or Antofagasta, among others. The big players in the copper sector account for around 57 percent of global copper supply. In the September quarter, their production volumes rose by a meagre 0.9 percent compared with the same time last year. Overall, the copper supply can thus be described as tight.
The demand for the reddish metal is increasing worldwide. When the economy really picks up again, which will happen sooner or later, demand for the industrial metal copper will increase. A deficit is generally expected on the copper market for the next five to ten years. One of the large companies that expect a significant decline in production during this period is Codelco, for example. By 2025, production from its current mines is expected to fall by 40 percent, and then by 76 percent by 2030, unless it invests heavily in further exploration. But that would require a higher copper price. Because the ore reserves are gradually being exhausted.
The copper price has recovered recently. The reduced production processes in China's metal refineries have also contributed to this. This is because copper production consumes a lot of energy, which is in short supply in China right now. The fact that mine production will grow by an estimated 3.9 percent in 2022 due to new mines could cause supply to rise again, but this is unlikely to hinder copper's success as a commodity. Since it should probably only be a temporary supply surplus.
Companies that focus on copper in addition to gold include GoldMining and Osisko Gold Royalties.
GoldMining - https://www.youtube.com/watch?v=aISY98SqIoE - has a nice portfolio of gold and gold-copper projects, as well as royalties in the US, Canada, Brazil, Colombia and Peru.
Osisko Gold Royalties - https://www.youtube.com/watch?v=_SizoaUxgcc&t=64s -, as a royalty company, brings diversification right along with it.
Current corporate information and press releases from GoldMining (- https://www.resource-capital.ch/en/companies/goldmining-inc/ -) and Osisko Gold Royalties (- https://www.resource-capital.ch/en/companies/osisko-gold-royalties-ltd/ -).
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/
