Copper price ready to take off
The trade policy tensions between China and the USA and the interest rate cuts by the US Federal Reserve led to subdued global demand. This development could now be reversed in the new year. Demand is rising and copper stocks are low. These supply restrictions and rising demand could lead to a rally in the metal.
Goldman Sachs, for example, or the Bank of America, Citi or even Morgan Stanley. They all expect a positive trend in the copper price for 2020. History also shows that price increases for precious metals were often followed by increases for base metals.
The investment bank Jefferies is also particularly optimistic about the copper price. Because, according to Jefferies, current supply cannot even achieve a slight cyclical recovery in demand. The winners are clearly the companies that own copper.
For example, Copper Mountain Mining. The Company has a 75 percent interest in the Copper Mountain Mine, which produces approximately 90 million pounds of copper equivalent per year - https://www.commodity-tv.com/play/copper-mountain-mining-increasing-copper-production-huge-upside-potential-at-eva-project/. But Copper Mountain Mining is also in search of copper in Australia. The Eva copper project (approved and ready for development) in Queensland recently scored an increase in mineral resources.
Skeena Resources also has a highly prospective GJ copper-gold project, in addition to the Snip and Eskay gold mines, all located in British Columbia - https://www.commodity-tv.com/play/skeena-resources-exploration-and-development-of-historic-gold-mine-deal-with-barrick/. An estimated mine life of 25 years and low initial investment are the plus.
Current corporate information and press releases from Copper Mountain Mining (https://www.resource-capital.ch/en/companies/copper-mountain-mining-corp/) and Skeena Resources (https://www.resource-capital.ch/en/companies/skeena-resources-ltd/).
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