Here’s Why We Should Own Some Copper Now
I recently spoke at the 25th Annual Investment U conference, hosted by The Oxford Club. The Oxford Club is a newsletter publisher that focuses on initial public offerings, cryptocurrencies, technology, and trading.
I brought them a different idea.My talk laid out the reasons that investors should begin to add copper companies to their portfolios.
It’s something I did for readers of New Energy. And now I’m doing a series of YouTube videos for everyone.I’ve studied copper for more than a decade.
One of the first projects I ever visited, Seabridge Gold’s KSM, is one of the largest undeveloped copper projects in the world.
Back when in 2006, when I visited, it was in the hinterland of British Columbia. However, since then, Pretium build the Bruce Jack Mine nearby.
That development brought roads, power, and infrastructure much closer to the KSM project.
This is a picture of copper in a piece of their drill core.
I suspect this next copper demand cycle will drive someone to build KSM into a mine. It’s too large a supply of copper in a friendly jurisdiction.
The supply/demand numbers tell us a specific story. We don’t have enough copper production (current and planned) to meet forecast demand within 5 years. That means the price of copper must go up.
Rising prices will kill some demand and balance the equation. And higher prices will encourage more exploration and development of new copper projects.
But it takes a loooooong time to get a mine permitted and built. But copper demand moves fast. That points to a long run up in prices, if the projections are correct.
And I believe they will be close.
You can watch the first video in the series HERE. If you like it, please hit the “like” button, leave a comment, and subscribe. You’ll help the channel grow and we appreciate it.
Numbers to Know
The length of the longest electric cable in the world is the Azerbaijan green energy bridge. Striving for energy freedom from a Russia, it will connect Azerbaijan and Europe, laying a green energy bridge between the Caspian region and the EU.. (News Central Asia)
The number of metric tons of copper that has been produced around the world. This would fit into a cube measuring about 430 meters on a side.. (USGS)
Copper was first used by man over 10,000 years ago. A copper pendant discovered in what is now northern Iraq has been dated about 8700 B.C. (Copper Development Association)
Renewable energy investors who lost subsidies promised by Spain are heading to a London court to try to claw back $125 million from the government. (AP)
The actions announced will drive new investments in energy communities to support their economic revitalization, strengthen supply chains, and help ensure coal, oil, and gas workers benefit from the new clean energy economy. (The White House)
Video Of The Week
Jeg vil være norsk!
I want to be Norwegian!
The Energy Transition Delusion: Inescapable Mineral Realities