Dr Copper will recover
The mood in China is becoming more positive. The economy is gradually being revived. Even Wuhan, by now probably the gateway to the Silk Road and a city of over a million inhabitants, is open again. The economic upswing in China can be seen in the purchasing managers' index for the manufacturing industry. In February, the index fell sharply, but now it is rising again. The same applies to the indicator regarding the service sector.
The demand for copper will therefore rise again. This is also reflected in the metal's price. Of course, it will still be a strenuous march for copper to climb old heights. But that should only be a question of time. Because sooner or later the virus crisis will be overcome, and the economy will catch up enormously. Because the improving mood in the Chinese economy is progressing faster than expected.
The whole thing started in China - and has driven the copper price down by about 22 per cent since January. Other countries are not yet as far advanced as China and are still suffering greatly from corona and therefore do not yet need as much copper as before the crisis. But the day will come and perhaps the global upturn will then go faster than predicted, as it did in China. The copper price will recover, and Dr Copper will recover.
If copper prices drift downwards again, this is an entry opportunity. Therefore, companies with copper in their projects should be included in the reading.
There's Copper Mountain Mining - https://www.commodity-tv.com/play/copper-mountain-mining-q4-and-full-year-2019-numbers-published/. With a 75 percent stake, the company is involved in the production of Copper Mountain Mine. The mine, located in British Columbia, produces around 100 million pounds of copper equivalent per year.
Aurania Resources also specialises in copper and also precious metals: https://www.commodity-tv.com/play/aurania-resources-following-tracks-of-lost-cities-new-targets-identified-by-lidar/. The flagship project, The Lost Cities-Cutucu Project is located in the Andes in Ecuador. Although operations are currently limited due to corona, time is being used to evaluate drilling data.
Recent corporate news and press releases from Copper Mountain Mining (https://www.resource-capital.ch/en/companies/copper-mountain-mining-corp/) and Aurania Resources (https://www.resource-capital.ch/en/companies/aurania-resources-ltd/).
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