Copper Market Deficit by 2025, page-133

Companies are having to engage communities and governments much earlier in project development these days given rising social and environmental awareness and expectations. Partly as a result, the average lead time from first discovery to first metal has increased by 4 years from previous cycles to almost 14 years, according to BI analysts.

Freeport Chief Executive Officer Richard Adkerson told an industry gathering last week that even if copper soared to US$10 a pound tomorrow, it would take his company 7 or 8 years to get new copper production to the market.


Source: Copper Investment Outlook -Near Term Uncertainty vs Long Term Opportunities (Wood Mac presentation 9 June 2020 via YouTube)

There are only 6 undeveloped copper projects in Australia with significant JORC Ore Reserves (West Musgrave, Eva, Kalkaroo, Hillside, Sulphur Springs, Jervois), that also have a Pre-Feasibility Study or Feasibility Study.

Of that six, 4 are owned by Australian junior exploration companies (HAV, RXM, VXR and KGL). The project pipeline still needs to be developed and put into production.

Base on the following indicative timeline, the Kalkaroo copper-gold project should be in production by 2023:



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These are only my thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.