Strong metal prices

Industry experts have noted that the copper supply is increasing only slowly. Many of the large copper producers have corrected their production forecasts downwards. These include Anglo American, Freeport-McMoRan, Rio Tinto, Vale or Antofagasta, among others. The big players in the copper sector account for around 57 percent of global copper supply. In the September quarter, their production volumes rose by a meagre 0.9 percent compared with the same time last year. Overall, the copper supply can thus be described as tight.

The demand for the reddish metal is increasing worldwide. When the economy really picks up again, which will happen sooner or later, demand for the industrial metal copper will increase. A deficit is generally expected on the copper market for the next five to ten years. One of the large companies that expect a significant decline in production during this period is Codelco, for example. By 2025, production from its current mines is expected to fall by 40 percent, and then by 76 percent by 2030, unless it invests heavily in further exploration. But that would require a higher copper price. Because the ore reserves are gradually being exhausted.

The copper price has recovered recently. The reduced production processes in China’s metal refineries have also contributed to this. This is because copper production consumes a lot of energy, which is in short supply in China right now. The fact that mine production will grow by an estimated 3.9 percent in 2022 due to new mines could cause supply to rise again, but this is unlikely to hinder copper’s success as a commodity. Since it should probably only be a temporary supply surplus.

Companies that focus on copper in addition to gold include GoldMining and Osisko Gold Royalties.

GoldMining – https://www.youtube.com/watch?v=aISY98SqIoE – has a nice portfolio of gold and gold-copper projects, as well as royalties in the US, Canada, Brazil, Colombia and Peru.

Osisko Gold Royalties – https://www.youtube.com/watch?v=_SizoaUxgcc&t=64s -, as a royalty company, brings diversification right along with it.

Current corporate information and press releases from GoldMining (- https://www.resource-capital.ch/en/companies/goldmining-inc/ -) and Osisko Gold Royalties (- https://www.resource-capital.ch/en/companies/osisko-gold-royalties-ltd/ -).

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