A snippet from Casey. Re-inforces the great outlook for PNA.
At the annual Prospectors and Developers Association of Canada conference, analyst Andrew Keen presented his outlook for the copper market on Sunday. He said that the . global market for refined copper will likely show a surplus of 500,000 metric tons in 2009, with prices expected to average $1.65/lb over the year.
However, he predicted a much smaller surplus, of 140,000 tons, by 2010.
Although the price prediction is slightly higher than current levels, Keen said he expected that the outlook for declining mine supply of copper would prop the metal up, and likely produce a rebound in demand and prices in 2010.
“The current cycle has indicated that demand is relatively resilient, copper mine supply is heavily interrupted, inventory rises to date have been reasonably modest.”
In his comments on the outlook for copper, Keen was particularly critical of the mining industry's performance in finding big new copper deposits and bringing new mines into production, even after four years of “booming” prices.
“But, most important, in the copper market today, we think that exploration has failed,” Keen said.
Copper prices rose to above $4/lb in mid-2008, buoyed by strong demand for the industrial products, particularly in emerging markets like China, but prices fell sharply in the latter part of last year, as global economic activity slowed.
PNA Price at posting:
16.6¢ Sentiment: Buy Disclosure: Held
