Copper breaks USD $3.0 per lb. The Perfect Storm of FED QE Tsumani is reaching the Copper market after lifting mega yachts first and pushing Warren Buffett into Barrick Gold stake position.
There are only a very limited number of Copper projects with the magnitude of Los Azules in the world which are opened for development. The Perfect Storm has reached the Gold market first and the Copper market is next. Rob McEwen is ready for a JV deal to move project fast forward into the development stage after receiving the bilateral agreement between Argentina and Chile supporting this development.
TNR Gold is Plugged Into Energy rEVolution with our Lithium and Copper Royalty Holdings. This "Sleeping Giant" - as Rob McEwen calls Los Azules - is ready to be awakened by the industry majors and will provide the new catalyst for valuation for our NSR Royalty Holding on the entire deposit. Learn more about Copper and this unique market opportunity in the presentation below and do your own research as usual.
Please always read legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blog. Always consult a qualified financial adviser before any investment decisions.
Do Your Own Research.
Chart by @EnronChairman
Chart by @Schuldensuehner
Dr Copper is driving up the hill in "ludicrous mode" after doing donuts in his brand new Tesla. Anyone can get really excited after reading all headlines about new EVs and "Infrastructure Stimulus Plan". If Robinhood traders can spell Copper one day, it can go totally nuts and start chasing the performance of its shiny brother Gold.
Can you imagine how many Copper doorknobs we need to fight this CoronaVirus? Copper becomes Gold during the electrification of $12 Trillion industries of Energy and Transportation. Very respectable people are talking about Golden Cross Long Term Buy Signal for the red metal which is going green during Energy rEVolution.
Chart by @sentimentrader
Anna Golubova from Kitco provides us with BMO observations about the recent state of the Copper industry and confirms our brave investment thesis. We will need Copper. We will need a lot of it.
As always, it is very important who is talking about Copper now. Barrick Gold is "on the hunt for strategic Copper". And Trafigura is talking now about the surge in global Copper demand during Green rEVolution.
China is coming back online and driving prices up already on the demand spike while restocking its supply chain. "China sees a surge in Copper imports," according to Bloomberg.
And it is harder and harder to get new giant Copper mines into production in order to address the coming "Severe Deficit" as Goldman Sachs calls it. The new great Copper discoveries are coming only a few and far between, according to S&P.
Major producing mines are more than 70 years old. Industry head grades are going down and, in general, the Copper industry was build by our great-grandfathers. After the Perfect Storm in Gold, the QE tsunami is coming to the Copper market.
Two major megatrends are colliding and will produce real fireworks for strategic commodities. Energy Transition with the electrification of $12 Trillion Energy and Transportation Industries meets Copper industry which was built in the last century.
The best medicine from low prices is low price. Price shocks are imminent. Nobody will be building new giant copper mines with Copper priced below USD $3/lb. The best projects which are ready for further development will get proper industry attention first.
Now you can better appreciate the magnitude of the potential investment opportunity with the giant Los Azules Copper project development by McEwen Mining. TNR Gold holds NSR Royalty on the entire Los Azules Project and below you can find a lot of information for your further research.
Please always read legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blog. Always consult a qualified financial adviser before any investment decisions.
Do Your Own Research.
"TNR also holds a 0.36% NSR on the Los Azules Copper Project, located in San Juan Province of Argentina. The Los Azules Project is owned 100% by McEwen Mining Inc (NYSE:MUX) and is expected to be the 26th largest copper mine in the world once it reaches production.
A PEA at the project completed in September 2017, demonstrated a post-tax NPV8 of US$2.2bn with a post-tax IRR of 20.1%. Based on the PEA figures the mine is expected to generate average revenue per annum of U$953mln, which could generate around US$3.5mln a year to TNR over 37 years."
Now investors can do their own research and start putting the different pieces into their own valuation puzzle. Rob McEwen has prepared Los Azules to the potential major JV deal in the copper space.
Agreements between Argentina and Chile are signed in order to advance the Los Azules project and the new road is being under feasibility study. The new approach by Rob McEwen which he has articulated in order to jump-start the development is making a huge difference for any potential partners:
"McEwen Mining conference call, Robert McEwen -- Chairman and Chief OwnerHappy to. We had past discussions with a senior base metal producer. What we were looking for was recovering part of the cash we put in. We were looking for $100 million upfront that the partner would advance the project to feasibility and then into production and we would continue with an interest of 20% or 25% of the property going forward."
Needless to say that any potential deal will bring the new valuation drivers for all parties involved: McEwen Mining and TNR Gold, as the project will be moving into the feasibility and construction stage. Development of Los Azules will provide enormous economic benefits for San Juan, which is ready to support this kind of responsible mining business for the benefit of proud people of Argentina. I have been calling Argentina the potential Energy Power House for many years, it can finally coming all together now."
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