Green Energy Metals And Tesla rEVolution: Copper Deal Day Hits With A Flurry Of M&A For The Hottest Metal.

I would like to congratulate today our partner on Los Azules Copper project Rob McEwen. McEwen Mining Intersects 53.9 g/t Gold Over 8.3 m at the Froome Footwall. This discovery will turn heads around in the industry and today you can participate in Investor Day of McEwen Mining. Los Azules time is coming as well with the further development of infrastructure and more interest from copper majors who are hunting for the new projects. "A flurry of M&A deals for the hottest metal" confirms our observations:

"Recent bloodbath in commodities was the result of the hotheads making even hotter headlines. Trade Wars come and go and unless there will be a total collapse of the financial system, critical commodities like copper will enjoy much higher prices. Actually, we can have now one of the best entry points in our sector now."

"Price shocks are imminent and will be followed by the much higher prices for the Green Energy Metals. We have too mega trends colliding: The Switch to Clean Energy which will demand more and more energy metals like copper and production deficit which will be increasing every year with diminishing reserves and going down head grade. Resource nationalism will only exaggerate this looming supply deficit." Read more.

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Please read legal disclaimer. There is no investment advice on this blog. Always consult a qualified financial adviser before any investment decisions. DYOR.

TNR Gold holds NSR Royalty on Los Azules with McEwen Mining with a very impressive USD $127 million potential undiscounted cash flow presented by McEwen Mining in their PEA. I must mention that TNR Gold QP was not able to verify any data presented by McEwen Mining and no indication of values should be taken as an investment advice here, as usual. 

Mining Weekly:

Copper deal day hits with a flurry of M&A for the hottest metal

5TH SEPTEMBER 2018 

BY: BLOOMBERG

LONDON – "Everyone loves copper and everyone wants to buy it” has been this year’s mining mantra. Today the ball started rolling.

China’s Zijin Mining Group swooped on a huge undeveloped copper mine in Serbia, acting as a white knight to beat out an earlier hostile bid from a Canadian rival. At the same time, BHP Billiton, the biggest miner, snapped up a stake in one of the world’s biggest undeveloped assets. Glencore also increased its exposure to the metal with a new offtake deal.

The world’s biggest miners have all spoken openly about their ambitions to increase exposure to the copper, even as prices slid into a bear market. They’re taking the long-term view that the increasing electrification of transport and cities will lead to growing demand, while new supplies of the metalare constrained. Bloomberg Intelligence sees the market in tight balance for the next two years and probably moving into deficit around 2020.

Still, while there is desire to add more copper, there haven’t been many deals until now and the transactions today are relatively small. Many assets either aren’t up for sale or are in unattractive locations, said Liberum Capital Markets analyst Richard Knights. “Almost every large undeveloped copperbody comes with very specific issues, from jurisdiction, being privately owned or already held by a major,” he said.

The biggest deal of the day was Zijin’s pact to buy Nevsun Resources for $1.41 billion. Nevsun solicited interest following its rejection of a hostile takeover by Lundin Mining, which had made repeated overtures. Nevsun, once a target for banker-turned-mining-fund-boss Lloyd Pengilly, controls the Timok copper/gold project in Serbiaand the Bisha mine in Eritrea.

Earlier today, BHP said it had bought a 6.1% in SolGold for about $35-million. The miner has been pursuing SolGold for two years, but an earlier offer was rejected in favor of an investment by Newcrest Mining. SolGold is planning to develop the Cascabel project, which could become one of the world’s major copper mines, and has exploration ground across Ecuador.

Also Wednesday, Glencore announced a $100-million offtake deal with Brazilian copper producer Paranapanema SA.

It’s not just deals moving forward, but new mine developments too. Anglo American gave the green light in July to start building its $5-billion Quellaveco copper mine in Peru. Smaller rival KAZ Minerals has also recently unveiled plans for a new copper mine, paying $900-million for a deposit in Russia that could cost about $5.5-billion to build.

Rio Tinto Group, perhaps the miner with the strongest balance sheet in the sector, has also openly talked about expanding in copper, although CEO Jean-Sebastien Jacques told investors last month that the miner had to be patient to avoid overpaying.

“Everybody knows which asset I would love to have in the portfolio,” Jacques said, referring to the Collahuasi coppermine owned by Anglo and Glencore which Rio previously tried to buy. “But we’re not going to do anything stupid, absolutely not. We keep the watching brief.”