Constructive Dialogue: Copper M&A the Cupboard is Nearly Bare, page-27

"Really need Cu prices above US$3 per lb for a sustained period to motivate funding for supply, while there is a little bit of exploration happening there is just not much motivation or activity to increase supply"

Lazerblue concurs.



Copper needs to be “well above” US$3 per lb to attract investments
“Important investments won’t happen at US$2.60 per lb,” Cussen said. “The copper price needs to be well above US$3 per tonne (US$6,614 per tonne) for new investments to occur.”

Pala Investments' Gill agreed. “Either the world demand for copper [will need to] shrink substantially or the incentive price of US$7,800-8,000 per tonne [US$3.53-US$3.63 per lb will need to be] reached,” Gill told Fastmarkets.

Pala Investments is a majority shareholder of US copper mine Nevada Copper, whose Pumpkin Hollow project is the first US copper mine to commence production in the past decade.

About US$8-10 billion in sustained annual capital expenditures are required “just to maintain current copper mine output,” Gill said.

The capital cost for bringing new copper supply online is around US$18,000 per tonne, he added, so if 5-6 million tonnes of additional output is required over the next five to seven years to meet the world’s growing copper usage, investments in the industry need to total about US$12-17 billion annually.


The Havilah Board's view on anticipated future improved copper prices is set out in the last ASX Quarterly activities report:



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.