A copper M&A frenzy masks big miners’ hesitation to build...

A copper M&A frenzy masks big miners’ hesitation to build

https://www.mining.com/web/a-copper-ma-frenzy-masks-big-miners-hesitation-to-build/

Juniors, lower down the mining food chain, have long taken on much of the sector’s exploration risk. But that proportion is now increasing just as investment in smaller outfits falls.

“We’ve got to a point where we’re quite reliant on juniors to explore. It’s very difficult seeing that continuing if they’re not getting the equity that they need,” said Sandra Occhipinti, a geologist and researcher at Australia’s national science agency, Commonwealth Scientific and Industrial Research Organisation.


“Once upon a time you could just kick rocks. It’s not for the faint-hearted — and only one exploration campaign out of a thousand results in a [economic] discovery,” says Karol Czarnota, a director at Geoscience Australia, a government agency set up to encourage mining.



Major copper discoveries (S&P Global article dated 5 Sept 2024)

https://www.spglobal.com/marketintelligence/en/news-insights/blog/major-copper-discoveries

The dearth of recent discoveries is a direct result of the industry's continued focus on brownfield assets — extending known deposits and assets — rather than the generative exploration that could yield brand-new discoveries.



Global mining and metals – a quick reality check
A new report by McKinsey’s energy and materials practice outlines a global mining and metals industry emerging from a few years of boom and bust and price fluctuations the consulting firm calls unprecedented in scale.

Copper supply lags projections not only because of expected projects not coming online but also because several assets decreased production faster than anticipated.

Full copy of the McKinsey report can be found here:
https://www.mckinsey.com/industries/energy-and-materials/our-insights/global-materials-perspective



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.