Having the copper price on the screen
Not only gold, but also copper has experienced a remarkable price rally in recent months. The hunger for copper is stimulated by the increasing electrification and the rising number of electric vehicles. For the fourth month in a row, the price of the cyclical metal is in the expansive range. China's economy is recovering visibly, and the country is now the largest consumer of copper.
The copper requirements of the new digital economy, i.e. the digital infrastructure, must not be forgotten. In China, for example, this is being expanded to an extreme degree. Energy-intensive data centers and 5G networks need copper.
Many analysts see a copper price of US$ 7,000 per tonne for 2021. Since the 6,000 Euro mark has been passed, speculative investors have become wary and want to jump on the bandwagon. In addition, the Corona Pandemic has broken out strongly in Chile, the largest copper-producing country, where about 25 per cent of the world's copper is produced. An undersupply could develop. And the copper market has already become tight.
As a result, copper stocks have already declined significantly. And supplies from the copper scrap sector, which is important for the copper supply, have also fallen sharply. Companies such as Copper Mountain Mining or Auryn Resources are needed to jump on the moving copper train.
Despite Corona, Copper Mountain Mine in British Columbia, in which Copper Mountain Mining holds a 75 percent interest, was able to report strong second quarter results in terms of production and finances.
Auryn Resources has high grade gold and copper projects, six in number, in Nunavut and Peru. A planned restructuring of the company should be beneficial to shareholders.
Recent corporate news 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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