Bargain in the copper sector
The fear of a global recession is spreading. Demand for the cyclical metal copper is currently low. Production stops at major car manufacturers, because they are also among the copper consumers, are causing demand to fall. But before the virus crisis, the reddish metal was in a supply deficit. At the current copper price, production is declining. Workers in several mines have also become infected and production will fall.
The copper content in the mines has also been declining for some time. As a result of the current corona crisis, the copper shares of large and small companies have also lost some of their value, in some cases even halved. The fact that there are copper companies that could operate profitably even at the low copper price is simply overlooked. The fear of the virus, of the unknown, is too great.
Even if the outlook for copper and copper stocks looks bleak, many market observers see good long-term prospects for the copper price. For example, the Chilean mining minister continues to forecast a price of US$6,600 per tonne of copper for the later course of 2020, despite the effects of Corona.
Solid companies that have copper in the ground, such as Copper Mountain Mining or Auryn Resources should therefore not be forgotten.
Copper Mountain Mining has a 75 percent interest in the Copper Mountain Mine in British Columbia, which will provide 75 percent of the production of 87.2 million pounds of copper equivalent in 2019, and also owns an approved copper project in Australia: https://www.commodity-tv.com/play/copper-mountain-mining-q4-and-full-year-2019-numbers-published/.
Auryn Resources has six projects. The most significant are the Sombrero copper-gold project in Peru and the Committee Bay gold project in Nunavut: https://www.commodity-tv.com/play/newsflash-with-isoenergy-sibanye-stillwater-skeena-resources-and-auryn-resources/.
Current company information and press releases from Copper Mountain Mining (https://www.resource-capital.ch/en/companies/copper-mountain-mining-corp/) and Auryn Resources (https://www.resource-capital.ch/en/companies/auryn-resources-inc/).
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