Escondida by far world largest Copper mine (Chile as a country...

Escondida by far world largest Copper mine (Chile as a country 2022 copper production fell by 6% unexpectedly) BHP sees production increasing to between 1.08Mt and 1.18Mt in 2023 (This will never happen - regardless of the level of investments circa $10bn) Hence 80% of exploration focus for BHP are focused on Copper.

Where we are now in 2023 - In 1980s when base metal demand was robust and global economy boomed as Japan was destined for world economic domination (copper rose 175%) - however tightness in inventories and huge spike in prices were short lived.(Implosion of Former Soviet union began in 1990 - All of a sudden enormous supply of copper flooded the market... Hmmmm).
Today with exchange inventories below 1 million tonnes (only covers 2.7 days of consumption) giving the strength of worldwide demand and supply constrains, we believe it's only a matter of time before the shortage reach detectable levels and panic (resulting massive upward price pressures).
Investors as well as normal folks are becoming convinced the world is entering a global recession, driven by rising interest rate; continued real-estate related issues in China and everywhere and no confidence in global banking???. - Which will produce a noticeable impacts on global base metals demand including copper (the reality investors are still missing the vast new sources of demand now embedded in international base metal demand figures) We think the copper demand will double the 10 million tonnes tonnes shortfall analysts are raving about!!

The Problem are Copper supply is falling, and ore grades and skyrocketing capital cost would eventually produce disappointments on a global basis. Copper demand is now running significantly above copper mine supply , further drawing down exchange inventories . inventories are now at levels last seen in 2005 just before copper surged nearly three fold (we were beneficiary of 2 Australian companies Citadel and Equinox - call it luck or deep research, we made money as so did many Australians and investors).

China already reopening and the "Game of Throne" is in full effect for World power (Germany, Italy, Japan plus others western industrialised countries demands for Copper has surges and will surge and they will need to secure; safe, friendly jurisdiction long term supply - Australian will be a beneficiary). The copper market is in structural deficit, and inventories are dangerously low. We believe copper could see a massive surge in 2023, similar to period between 2005 -2006).

Australian copper miners, and advance explorers will benefits tremendously from this demand surge in 2023.

Austral we believe will benefit mostly because:

1. Austral owns the only SXEW operating oxide infrastructure in Australia at present = Traders and customer prefer cathode . Also it cost less operationally rather than concentrate which means as prices increases Austral operating margin prints more cash!. Now North Queensland has pockets of stranded resources and those resources will wants to capitalise once copper price rocket!! more for Austral as it has plant capacity and running at 30% of name plate currently.

2. Austral already has 60MT of JORC compliant resources - which means the company owns development project that can come online quickly. For example the recent Lady Colleen Scoping study. Also Austral copper operations has a record of operating for more than 8 years (from multiple projects). We believe the company will need to clearly show how they will bring multiple projects online and maintain mine life for +10 years.

3. Austral do not have to acquire another mining company to maintain it mine life, increase it resource inventory or increase production - we see other listed junior copper operators has to buy or acquire operations in order to be in business for more than 5 years.

4. Austral will be one of the few Australian junior copper companies (if not maybe the only) that will become a copper cathode and a sulphide producers - this will means that traders and customers will want to have strategic alignment especially being in Australia.

5. Austral exploration ground = Austral own 2000Sqkm² of well define tenure in a know copper mineral province = We have seen the large players like BHP committing 80% of their exploration budget to copper exploration. Investors should remember Glencore is already in partnership with Austral (Our research shows Austral are one of the few junior companies Glencore are partnering with on exploration). This means they do see potential in the ground that Austral own. To be perfectly blunt we do not see any other group other than Glencore who knows/understand Mt. Isa better.

Happy hunting as we are well placed and see value in Austral Resources = DYOR

''While Chile has the largest copper reserves , ore quality has been steadily falling. that means their mines need to move more rocks to produce the same amount pushing cost" and project development is becoming costlier. Smart move by BHP to come back home and acquire OZ mineral.........