Copper is the metal of the future
Whether vehicles with fuel cells or more those with electric drive will prevail, the producers will not be able to avoid copper. Because it is used for the electric motor. Wind turbines also need copper in their production. In the longer term, this should speak for strong copper demand and also for the copper price.
The cyclical metal, copper, is also needed in the Chinese economy, which has recovered. In May the National People's Congress in China adopted a financial package of about 853 billion US dollars. One focus of this package is on 5G technology, which requires fiber optic and copper cables. Another focus is on electric vehicles. And China consumes about half of the world's copper. The high growth rates in China will continue to result in immense activities in the construction and also electrical industry in the future.
An economic revival, after the world has recovered from the pandemic shock, should also be good for the copper price among the industrial metals. The economic upswing does not seem to have been priced in for these commodities. There are of course risks, such as a second corona wave. It is to be hoped that the world will be spared this, if only because of the experience gained.
Anyone wishing to jump on the copper bandwagon should look to solid companies such as Auryn Resources or Copper Mountain Mining.
Auryn Resources owns three projects (gold, silver, copper) in Peru and three projects in Nunavut and British Columbia: https://www.commodity-tv.com/play/newsflash-with-gold-terra-resource-ximen-mining-and-auryn-resources/. H.C. Wainwright & Co., an analyst firm, currently recommends Auryn Resources as a buy and gives a target price of USD 2 per share (currently USD 1.43).
Copper Mountain Mining is developing the Eva Copper Project in Australia, which is 100 percent owned by the company: https://www.commodity-tv.com/play/copper-mountain-mining-updated-feasibility-study-for-little-eva-project/. And Copper Mountain Mining has a 75 percent stake in the producing Copper Mountain Mine in British Columbia.
Recent corporate news and press releases from Auryn Resources (https://www.resource-capital.ch/en/companies/auryn-resources-inc/) and Copper Mountain Mining (https://www.resource-capital.ch/en/companies/copper-mountain-mining-corp/).
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