Hi Clark888 and all,The G&R report is excellent and really sums...

Hi Clark888 and all,

The G&R report is excellent and really sums up the supply situation from a geological perspective - i.e. there is no Cu left in these older deposits for the miners to lower reserves cut of grades in response to higher prices like they have done in the past.

i would also add a further issue which is only just starting to be recognised ... geopolitics.

Political risks are rising rapidly. In the last week I have seen:

Zambia shutting down a formerly seized Cu mine (Vedanta’s)

Chile is in the process of increasing royalty to 3% which, according to an industry body means 12 of the 15 largest Chilean Cu mines will be unprofitable

Peru is in the middle of a Presidential election with the frontrunner a communist who is looking to Nationalise their Cu mines (Peru produces 12% of global copper)

Mongolia is threatening to tear up Rio Tinto’s OT mining agreement

The list goes on ...

With these mounting risks, I think the mining giants will be very wary of spending Billions to develop the next large, multi decade Cu project.

Both the demand and supply side are setting up extremely well for Cu.

cheers
john