Copper price - Awoonga's PerspectiveGoing back over the copper...

Copper price - Awoonga's Perspective

Going back over the copper price for the last 50 years we see that the copper price rose steadily from 40c in 1960 to $1.60 in 2000. This is a rate at a little better than 3% per year or in line with average economic growth.

From 2000 to 2008 the copper price rose dramatically to $4.00 then the GFC took the price back to $1.50.

The question is what would be a fair price for copper today?

Average case scenario would be a 3% yearly increase from 2000 making today's price $2.40.

Due to the ever increasing demand for copper we have seen recent prices a lot higher than this but lately we have seen $3.00 being tested.

Perhaps $3.00+ would be a fair price for copper today but copper investors will have that $2.40 price in their considerations.

How does the above affect AVB?

Generally, with a high copper price all miners can make money. If the price were to go back to $2.40, only a few copper miners including AVB can make money.

Perhaps the recent interest in AVB besides potentially becoming a miner, has more to with the copper price possibly going down and not up in the next 12 months.