Copper miners glimpse the future they’ve long seen coming@ValueWorx63Don't forget copper production, which should form ~30% of EVN's quarterly revenue (post Northparkes acquisition).
Goldman Sachs has reiterated its bullish call for
a 65% copper price jump by 2025.
“Large deficits” in the second quarter will push the market into backwardation — an indicator of strength — in the second half, Goldman Sachs Group Inc. analysts said in a note Thursday.
More information was provided in this copper tweet from Robert Friedland, also overnight:
Goldman Sachs on
#copper: The relationship between inventories and timespreads—spot prices versus forward prices—is highly non-linear for industrial metals, including
#copper. The boost to timespreads from a drop in industrial metal stocks tends to be modest when stocks are within historical norms, but rises sharply when dropping to depletion level lows. Our metals team expects that large deficits from Q2 will push the
#copper market into the steep scarcity pricing part of the stocks-timespreads curve and backwardation in H2. The estimate that current
#copper 1/12 month timespreads look about 2 standard deviations (~$650/ton) too low vs. fair value and the non-linear
#copper curve support
our bullish copper call that the #copper price will jump 65% by 2025.
Cheers
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.
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