"Three buys for the looming copper shortage"Article on popular...

"Three buys for the looming copper shortage"

Article on popular daily share market site earlier this week. NWC not mentioned but the focus is more on existing producers SFR (now largest pure play listed on ASX after OZL t/o), AIS and a new ETF, WIRE (from GlobalX) are mentioned. Good analysis on coming structural shortages inc the geopolitical issues in Sth America - esp Chile and Peru - which produce 43% of the worlds supply. The way I read things even with all existing supply continuing on and new mines planned there is a massive structural deficit in copper for the next 10-15 years starting soon (2025 ish). No wonder our mates at G Sachs think there will be a structural doubling in copper prices to $16k USD / tonne

One paragraph only quoted below

Near Record Low Inventories - Instead of starting new mines, we have used what we had warehoused or recycled. Prices have been so low that recycling has ground to a halt so we have used inventories. London Metal Exchange warehouse inventories are at record lows while countries have maintained inventories. But the recent global infrastructure stimulus coupled with the demand from the EV sector will quickly draw down inventories with the lack of supply to re-stock. At mature mines, ore quality is deteriorating, meaning output either slips or more rock has to be processed to produce the same amount. Meanwhile, new deposits are getting trickier and pricier to both find and develop. Supplies are already so tight that producers are trying to squeeze tiny nuggets out of junky waste rocks.

And finally from the same site an article called "Copper threatens to outshine lithium, putting leveraged juniors in the frame" by Barry Fitzgerald (who I have found to be an excellent Journalist over the years ) a few days ago states:

Glencore doesn’t give out price forecasts but its CEO Gary Nagle did the next best thing at a company briefing in December.“There’s a huge deficit coming in copper, and as much as people write about it, the price is not yet reflecting it,” Nagle said. Copper was $US3.85/lb on the day and its 9% price improvement since suggests people were listening.Glencore estimates a there could be a cumulative gap between projected demand and supply of 50Mt between 2022 and 2030. That’s scary stuff.

And then

Nothing wrong with that but there is even greater leverage amongst the ASX copper juniors to copper prices that a world “screaming” for supplies could deliver in coming years.New World Resources:Copper’s price bounce to $4.20/lb since the start of the year has been enough to turn investor attention to the juniors.One to benefit has been New World Resources (NWC), which has moved up since the start of the year from 3.3c to 4.5c this week, giving it a market cap of $95m.It makes for a happy bunch of subscribers to its $8m raising from a placement in December at 3.2c a share. The funds will enable NWC to keep up a cracking pace at its Antler copper project in Arizona.

I have only quoted a small section of Barrys article but again some good analysis and he drills down on NWC and is very positive on the story

I would try and post the links for the above but HC doesnt allow this sites articles to be access but just google the title above in quotes to read.

GLTAH