Morning Guys,Not that this impacts NWC at this stage, but the...

Morning Guys,

Not that this impacts NWC at this stage, but the piece below highlights that there are a lot more risks to the Cu supply side than just the geological issues shown by G&R.




Throw in all the political risks that are now emerging:










Why would any Mega-Miner risk $$ Billions developing / expanding a Cu deposit in any of these countries.

IMO, this emerging Cu bull is going to be long-and-strong due to it being driven from both the demand and supply side.

The "cure-to-high-prices-is-high-prices" as espoused by 2ic does play a role. However, the supply side will be a lot less responsive within the Cu sector and the ability to substitute Cu for other metals is problematic relative to other commodities.

As per Mark Thompson, prices will have to eventually rise to the point of demand destruction.

Cheers
John