The copper price is on its way
The first quarter of 2020 was not pleasing for the copper industry. Price declines of around 20 per cent and falling demand caused the reddish metal to suffer. Today, the pound of copper costs 2.60 US dollars again, and the tonne of copper is around 5,785 US dollars. The main consumer is China. A steady, albeit slow, recovery is evident there. The resumption of China's economic efforts ensured the price recovery. In addition, there was a shortage of supply from the scrap market and continuing supply disruptions.
Huge economic stimulus packages, the largest from the US Federal Reserve, the European Central Bank and from China, could give a further boost to the copper price. Important areas in this respect are investments in construction and infrastructure. The way in which governments are manoeuvring their economies out of the current recession is also likely to be decisive.
The economies will recover and normalize, albeit not synchronously. After the financial crisis, copper prices rose massively. Although the crisis is now somewhat different - a self-made shutdown of the global economy - compared to 2008/2009, a positioning in copper values could now be worthwhile.
Copper in their projects have, for example Copper Mountain Mining or Aurania Resources. Copper Mountain Mining owns 75 percent of the Copper Mountain Mine in British Columbia: https://www.commodity-tv.com/play/copper-mountain-mining-updated-feasibility-study-for-little-eva-project/. This mine produces around 90 million pounds of copper equivalent per year. The 100 percent owned Eva Copper project in Australia is currently under development.
Aurania Resources focuses on copper and precious metals at its main project, The Lost Cities Cutucu Project in the Andes in Ecuador: https://www.commodity-tv.com/play/newsflash-with-rnc-minerals-discovery-metals-isoenergy-and-aurania-resources/.
Recent corporate news and press releases from von 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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