Will Tesla rEvolution bring us $5 dollar Copper? Not a lot of people are expecting it now. But even less has expected Tesla hitting $2,318 this week. We had already discussed with you how Tesla has supercharged Copper into the Golden Cross.
And now we are moving very fast into the $3,000 Gold with Warren Buffett's blessing. Our dear friends at the FED are doing everything they can to help us to get to the $5 dollar Copper.
Not everyone can live happily on the private island watching their Apple grow, we still need some people to bake those croissants to enjoy the morning breeze. But on a serious note, that stage which we discussed here before - with tanks and people in hazmat suits - is getting dangerously close with growing bloody divergence on every uptick for the stock markets and the number of unemployed.
FED is throwing in the towel its "Policy of the Strong US Dollar from 1913" and we cannot argue against it. All people have their right to enjoy full employment, 0.01% have their right to enjoy Apple and we are hoping to enjoy here $5,000 Gold and $5 dollar Copper. Now everybody can go home and we all can enjoy the silence.
Northern Miner is providing us with more insights into the recent stage of the Copper market and the road to the global electrification of Energy and Transport industries which is ahead of us. Somewhere on this road, McEwen Mining will strike a JV deal for Los Azules Copper as we have discussed and it will bring new valuations to all parties involved.
Higher Copper prices will address all uncertainty related to Argentina and the constant search of its destiny. Even $4 dollar Copper will make a lot of proud of people of San Juan very happy, they all deserve it. Tesla rEVolution is here and The Switch is happening for millions of people now with every new electric car sold.
This rEVolution will require a lot of Copper and giants like Los Azules can deliver it for many years to come. TNR Gold holds NSR Royalty on the entire Los Azules Copper project and below you can fund more information for your research. Stay safe, buckle up and enjoy your journey.
"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."
"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."
Northern Miner:
Roskill sees ‘structural shift’ in copper market on intense buying from China
"Copper was once again approaching the psychologically important US$3 per lb. level on the back of falling inventories, booming Chinese demand and pandemic hit supply from South America, the U.S. and Africa.
On Aug. 26, Copper for delivery in December trading in New York jumped 1.5% to US$2.9965 per lb. ($6,605 a tonne) in afternoon trading, bringing gains in 2020 to more than 7%, and 50% since the Covid-19 lows struck in March.
A new report from Roskill suggests the rally in copper, which has surprised many with its speed, has further to go.
Jonathan Barnes, associate consultant for copper at the London-based metal and minerals research firm, says while the effects of Covid-19 could decrease world consumption of the metal by 3%-4% this year, the drop in mine output and scrap flows has been greater.
This is most visible in the fall in inventories around the world.
Globally, total visible stocks, which include those on exchanges and bonded warehouses in China, fell by 40% from March through July to below 600,000 tonnes. LME warehouse inventories are at 13-year lows.
China is responsible for more than half of the world’s copper consumption, and the country is buying copper at record-setting rates.
“China is importing more refined metal from nearly every country suggesting a structural shift, not a temporary change,” says Barnes.
“If you are looking for signs of panic buying, you can find evidence of that in China – total Chinese stocks represent less than two weeks’ consumption at current rates of use.”
In the rest of the world, where demand has dropped by much more relative to China, stocks represent only one week of consumption.
The lack of available scrap – imports are down 50% in the first half – after Beijing delayed new importing rules, has forced the Chinese buyers to replace secondary sources with cathode, further driving down visible inventories.
Roskill estimates a 300,000-tonne shortfall in imports of secondary materials — scrap, ingots and granules – into China from January to July.
Barnes believes global scrap flows may not normalize until the first quarter of next year, but would depend on new rules in China.
Roskill’s sources have not been able to confirm that China’s State Reserve Bureau has been buying up strategic stocks of copper, “but if they were, they probably would have done so earlier, when prices were much lower,” Barnes says.
Disruptions to mine supply could be between 750,000 to 1 million tonnes in 2020, with eight out of the 10 largest miners recording lower output during the first half of the year.
China’s concentrate imports are down year on year, while sourcing anodes from the central Africa copper belt is also hitting roadblocks.
Barnes says China’s two-year restocking cycle is rising in amplitude as the country’s dominance in the copper market increases, and he expects an 11.5% rise for the full year in copper imports.
The country has a structural copper market deficit, and it restocks whenever LME prices appear attractive. Moreover, says Barnes, China can take a long term view and use tomorrow what it does not need today.
Roskill expects trade data to show another bumper August for imports, despite being a seasonally muted month for shipments.
The copper price will likely rise further towards the end of 2020, Barnes says, and the current environment has strong parallels to the rebound in the copper price after the global financial crisis.
Copper hit a low of US$1.32 per lb. in January 2009, then surged to US$3.55 by April 2010, on its way to an all-time high of US$4.58 (more than $10,000 per tonne) in February 2011.
— This article first appeared in our sister publication, MINING.com"
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