@Jithubqueen7 Yep on a fundamental level the supply/demand situation just cannot support prices staying where they are.
You have to factor in that post covid, governments printed an obscene amount of money and everything must reflect that supply/demand. Anything with real tangible value (houses, cars, commodities, energy) must reflect this.
That alone has not been fully priced into copper because there was an overhang of fear since copper is seen as a barometer for the economy and people were nervous on that (US rate cuts and china stimulus is a strong signal that they prefer inflation to deflation).
Then there's the stuff we discuss all the time here about copper macro like industrialisation, AI data centers, electrification, EV's and war all driving the copper price upwards, after decades of under-investment.
Even the bears here admit it takes a long time to get a mine into production which is a fair statement and applies to our competitors, most of which cannot implement a DSO to start early cashflow.
So you have this perfect storm where it's very difficult to ramp up enough copper to supply demand from existing brownfields operations and new mines. It's obvious that any junior which is genuinely good (make your own mind up about if AW1 fits into that category) is going to massively benefit from the copper macro situation.
There are just so many long term structural trends I don't see slowing down. Industrialisation is the biggest one, there are still large portions of the world which are reaching middle income status and are now starting to build infrastructure to match.
Commodities in general will do very well until 2050 IMO. But especially copper.
AW1 Price at posting:
12.0¢ Sentiment: None Disclosure: Held
