why CYM is a Billion $ company in the making, page-1171

Goldman Sachs is expecting copper to go to a new all-time high of US$5.50/lb over the next 12-months. So potentially CYM could have their 1st six months of plating copper above $5/Lb. I make note of this because Goldman Sachs Jeff Currie has been one of the few analysts to call copper price correctly the last 12 months.

"Wood Mackenzie, a leading research house, is concerned that the overall increase in metal prices could lead to long-term changes in the market. Robin Griffin, vice president of Wood Mackenzie said mining company profit margins are “way above historic norms” and such a drastic divergence of price and production costs cannot last indefinitely, even if there is an indefinite “stranding” of Russian supply."

Wood Mac seemed to have missed the obvious. 5% inflation currently roaring around the globe. Brent oil currently $110/ barrel which is a huge factor on global copper mining giants like BHP or Codelco. With that inflation comes wage increases which is exactly what Peru and Chile are targeting along with nationalising their copper mines. Chile has been targeting copper miners during the last 18 months but are they likely to change? Unlikely.

"BHP is considering a US$10 billion investment to expand its Chilean copper business but only with “legal certainty”, the head of the company’s copper division, Ragnar Udd, told the CRU-CESCO copper conference." So for the immediate future you can discount BHP from further exploration and project expansions.