Is copper the new gold?
Underground miners at the the Vale do Curaça (MCSA) copper complex in northeastern Bahia State in Brazil. Credit: Ero Copper.
One of the key themes that emerged from the 30th BMO Global Metals & Mining conference last week was the desire among many gold and base metal companies to increase their exposure to copper. The investment bank’s fireside chats with CEOs and presentations were not open to the media, but according to highlights BMO released each day, the outlook for copper and its importance to the green energy transition dominated much of the discussion. When BMO polled participants on the final day, more than 70% said copper “will see the strongest demand growth” (and well ahead of nickel), between 2021 and 2025.
Karora cuts high grade at Beta Hunt’s Larkin discovery
A muck pile at the gold discovery in level 16 at the Beta Hunt mine. Credit: RNC Minerals.
Just a month after posting a hefty increase in reserves and resources at its Beta Hunt mine in Australia,
Karora Resources (TSX: KRR) has released high-grade exploration results that point to further expansion potential.
Drilling at the new Larkin zone discovery made in September has returned several high-grade hits. Highlights from the infill and stepout drill program in hole 023E included: 9 metres of 19 grams gold per tonne from 221 metres depth, including 0.3 metre of 542 grams gold per tonne; 3 metres of 6.4 grams gold from 233 metres depth, including 1 metre of 16.2 grams gold; and 9.7 metres of 2.3 grams gold from 164 metres. (True widths are estimated at 90% of reported widths.) In addition, drill hole 018E intersected 3 metres of 4 grams gold from 163 metres depth.
Outlook for base metals remains strong, analysts say
Copper cathode production at Florence Copper’s test facility, July 2020. Credit: Taseko Mines.
Haywood Securities is raising its price forecasts for copper this year from US$3.00 per lb. to US$3.50 per lb.; for zinc from US$1.10 per lb. to US$1.25 per lb.; and for nickel to US$8.00 per lb. from US$6.75 per pound.
Looking beyond 2021, Haywood’s forecast for 2022 is US$3.50 per lb. copper; US$1.20 per lb. zinc; and US$8.50 per lb. nickel.
“The economic recovery is building, demand for metals is increasing, and sentiment about base metals is positive,” Haywood’s Pierre Vaillancourt said in a new research report today. “China ended 2020 in remarkably good shape, and remains poised to expand further this year, as the economy grew 6.5% in Q420, faster than the 6.1% consensus forecast, and industrial production rose by 7.3% in December 2020, the highest since March 2019.”
Copper Mountain reports record Q4 production
Aerial view of the Copper Mountain mine in southern British Columbia. Credit: Copper Mountain Mining.
After beating its production guidance for 2020 and reporting a record fourth quarter,
Copper Mountain Mining (TSX: CMMC) is guiding a further 22% increase in production this year.
The B.C.-based miner’s 75%-owned Copper Mountain mine, 20 km south of Princeton, B.C., produced 77.6 million lb. of copper last year, compared with guidance of 70 to 75 million lb. copper. The mine also produced 29,227 oz. of gold and 392,494 oz. of silver.
In the final quarter of 2020, the open pit operation achieved record quarterly production, churning out 23.1 million lb. copper, 8,959 oz. of gold, and 144,934 oz. of silver.
BTV Shines a Light on Companies to Invest In
BTV-Business Television spotlights the newest mining, cannabis, tech and pharmaceutical companies for investment opportunity.
Discover Companies to Invest In - Click company name to watch their TV feature:
IMV Inc. (TSX: IMV) (
NASDAQ: IMV) - A new type of treatment for cancer? BTV learns about a proprietary technology platform that uses your own immune system to kill cancer.
Vext Science Inc. (CSE: VEXT) (
OTCQX: VEXTF) - With the U.S. cannabis market estimated to be worth $30 billion nationwide by 2024, BTV finds out how this company has prepared for this surging demand.