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Whaleshark Exploration Update
Miramar Resources Limited (ASX:M2R, “Miramar” or “the Company”) is pleased to provide an update on exploration activities at the Company’s 100%-owned Whaleshark Project, in the Gascoyne region of WA, where the Company has outlined a significant magnetite Exploration Target of 411Mt - 2,353Mt at 25-30% Fe in proximity to substantial mining, processing, power, transport and shipping infrastructure.
- Significant magnetite Exploration Target outlined at Whaleshark in proximity to substantial mining, processing, power, transport and shipping infrastructure
- Project-wide passive seismic survey maps basement topography
“There is strong demand for magnetite from steel producers looking to reduce their carbon emissions through production of Direct Reduced Iron (DRI), which requires the higher grades obtained from magnetite iron ore to be effective,” Mr Kelly said.
“Whaleshark has several large magnetite-rich banded iron formations that have not been previously targeted or explored for magnetite iron mineralisation,” he said.
“Data from the passive seismic survey recently completed confirms that these magnetite-rich banded iron formation lie under relatively shallow cover,” he added
“Importantly, the Whaleshark Project is located in proximity to substantial existing and proposed mining, processing, power, transport and shipping infrastructure,” he said.
Figure 1. Location of Miramar’s Whaleshark Project in relation to various infrastructure.
Magnetite Exploration Target
The Company has estimated an initial magnetite “Exploration Target” for the Whaleshark Project as summarised in Table 1.
By using modelled geophysical data, geological logging and assay results from historical drilling within the Whaleshark magnetic anomaly and extrapolating those results to the two banded iron formations south of the Whaleshark Granodiorite, the Company has outlined a significant potential volume of magnetite iron ore, with the midpoint in the order of 1 Billion tonnes.
The scale of the potential magnetite iron mineralisation at Whaleshark compares favourably with several large magnetite projects within WA (Figure 2).
Table 1. Whaleshark Exploration Target Summary
Cautionary Statement:
The above Exploration Target has been prepared and reported in accordance with the 2012 edition of the JORC Code. The potential quantity and grade are conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource. It is uncertain if further exploration will result in the estimation of a JORC-compliant Mineral Resource.
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This article includes content from Miramar Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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Miramar Resources
Overview
With the explosive growth of the electric vehicle market and the global push for sustainability, demand for battery metals is skyrocketing. This has created significant upside potential for exploration, particularly where copper and nickel are concerned.
Miramar Resources (ASX:M2R) intends to leverage that potential to the fullest. Led by an experienced board with a proven track record of successful exploration, discovery, development and production, the company has acquired multiple projects with the potential to host world-class mineral deposits. These discovery opportunities lie in Western Australia's Eastern Goldfields and Gascoyne regions, including the Capricorn Orogen, a rapidly emerging yet largely underexplored mineral province.Proterozoic orogens are well-established as hosting major mineral deposits. Capricorn is no exception. It's highly prospective for multiple commodities and deposit types.
Recognizing this opportunity, Miramar has acquired two large and highly prospective landholdings within the Capricorn Orogen: the Whaleshark copper-gold project and the Bangemall nickel-copper-PGE projects. In addition to these, Miramar maintains two gold projects in the Eastern Goldfields, one of which — Gidji JV — has the potential to become a new gold camp in the region.
Miramar's strategy is simple — to create shareholder value through the discovery of world-class mineral deposits. It's well-positioned to do exactly that, with active exploration programs, a tight share register and low enterprise value.
Company Highlights
- Australian exploration company Miramar Resources is well-positioned to take advantage of the battery metals opportunity.
- The current focus on battery metals creates significant upside opportunities for exploration, particularly on copper and nickel.
- Led by an experienced board with a track record of successful discovery, development and production, Miramar has acquired multiple projects with the potential to host world-class deposits, including:
- Large, shallow copper-gold targets at Whaleshark
- Multiple nickel-copper-PGE targets at Bangemall
- Multiple strategic Eastern Goldfields projects, including one with the potential to become a new gold camp
- Miramar is an active explorer with regular news flow, a tight share register and low enterprise value.
Key Assets
Whaleshark (Ashburton)
Located roughly 40 kilometres east of Onslow in the Ashburton region of Western Australia, Whaleshark. It was acquired by Miramar as part of its initial public offering in 2020.
Miramar secured $180,000 under the Exploration Incentive Scheme (EIS) funding program from the Western Australia Government to fund diamond drilling and project development at Whaleshark. Assay results from the diamond drilling confirmed the presence of bedrock copper sulphide mineralisation at Whaleshark and the company also identified the potential for very large magnetite iron deposits near existing infrastructure.
Project Highlights:
- Prospectivity: Whaleshark displays all the necessary characteristics for the presence of a large copper-gold deposit, including:
- Proterozoic granite with nearby iron-rich rocks
- Overlapping magnetic anomalism and gravity
- Strong anomalous “interface” geochemistry
- Sodic and potassic alteration
- High-priority Drilling: Miramar has identified multiple high-priority bedrock drill targets which comprise overlapping:
- Mobile metal iron (MMI) surface geochemical anomalism over roughly 1.2 square kilometers
- Gravity anomalism crosscut by a northwest-trending structure
- Strongly elevated copper, cobalt, gold and silver results gathered from “interface” aircore drilling
- Advantageous Geology: Whaleshark’s geology is similar to the large Ernest Henry IOCG deposit in Queensland, including the scale, suite and magnitude of elements. However, Whaleshark also displays shallower cover compared to Ernest Henry.
- Bedrock copper sulphide confirmed: Results from the completed diamond drill program confirmed the presence of bedrock copper sulphide mineralisation within the project. Multi-element assays subsequently also confirmed the presence of anomalous copper, gold, silver, molybdenum and tungsten throughout the Whaleshark granodiorite.
- Large Magnetite Iron Opportunities: The drill program, coupled with analysis and comparisons to historical data and magnetic anomalies also indicate potential for a large shallow magnetite iron deposit at Whaleshark in close proximity to significant infrastructure.
Bangemall/Mount Vernon (Gascoyne)
Miramar has several granted and pending exploration licences in its district-scale Bangemall project which are prospective for Proterozoic magmatic Ni-Cu-PGE mineralisation associated with 1070Ma Kulkatharra Dolerite sills which are the same age as the Giles Complex, host to the large Nebo and Babel Ni-Cu deposits in the West Musgraves of WA.
Both the Geological Survey of Western Australia and Geoscience Australia have identified the area as being highly prospective for numerous types of mineral deposits.
Since 2020, Miramar has built a strategic land position in the Bangemall region, focusing on areas containing key ingredients and/or regional-scale indicators for Norilsk-style Ni-Cu-PGE mineralisation:
- Kulkatharra Dolerite sills – source of Ni, Cu +/- PGE’s
- Proximity to major crustal-scale faults (+/- cross faults) - potential plumbing systems +/- traps
- Sulphidic sediments - potential sulphur source
- Regional-scale geochemical anomalism (GSWA regional geochemistry)
- Regional-scale EM anomalism (2013 Capricorn AEM Survey)
The company’s Mount Vernon project is a high priority. In early 2022, Miramar flew a detailed magnetic and electromagnetic survey over the Mount Vernon project, identifying multiple late-time anomalies potentially related to nickel-copper-PGE sulphide mineralisation. A ground EM is underway and RC drilling is planned for Mount Vernon targets.
Project Highlights:
- Mount Vernon potential: Miramar's VTEM survey at Mount Vernon confirms historic exploration at the project, which identified:
- Nickel, copper and platinum group elements soil anomalies
- Significant nickel-copper in rock chips
- Drilling intersected elevated nickel-copper-PGEs in dolerite
- 50 rock chip samples taken, with several containing course-grained pyrite in fine grained chill margin and coarser grained gabbro in the centre of the sill
- Current Work: Geophysical contractors have commenced a fixed loop electromagnetic survey to refine targets for future drill testing
- Expansion of Bangemall Project: In early 2024, Miramar announced the grant of the Trouble Bore Exploration Licence, adjacent to Mount Vernon, where historic EM surveys had identified a strong late-time EM anomaly that could be representative of buried Ni-Cu-PGE mineralisation.
Gidji JV Project (Eastern Goldfields)
Located roughly 15 kilometres north of Kalgoorlie, Gidji is a highly prospective yet underexplored gold project with potential nickel mineralisation. Miramar has been actively exploring the project since October 2020, resulting in the identification of several new targets and outlining large aircore gold anomalies at Marylebone, Blackfriars and Highway/Piccadilly, each of which could host a significant gold discovery. The Marylebone target is the highest priority target as it has the same geology, structural setting and scale as the 4-Moz Paddington gold deposit which is also located in the ‘Boorara Shear Zone’ to the north and where Miramar discovered high-grade gold in a quartz vein. At the Marylebone target alone, Miramar has outlined a large shallow gold “exploration target” of 1.4 to 3.2 million tons (Mt) @ 1.2 to 1.5 grams per ton (g/t) gold. The company believes Gidji has the potential to become a new gold camp.
Highlights:
- Multiple High-potential Gold Targets: Potential mineralisation at Marylebone ranges from 1.4 to 3.2 Mt @ 1.2 to 1.5 g/t gold. Other gold anomaly targets include Blackfriars, Highway-Piccadilly and Railway. Miramar is currently refining bedrock targets for further deep drilling.
- Potential Nickel Sulphide Mineralisation: Through re-analysis of multiple aircore holes, Miramar has produced significant platinum and palladium assays commonly associated with high nickel and copper results.
Glandore (Eastern Goldfields)
Situated 40 kilometres east of the Kalgoorlie Gold Field, Miramar's 100-percent-owned Glandore project displays the potential for significant high-grade gold mineralisation. Previous exploration of the project area identified a large aircore gold footprint along with significant gold anomalism. Diamond drilling in 2005 returned results that included 4 metres @ 44.3 g/t gold.
In 2022, Miramar completed a diamond drilling program at the high-grade “Glandore East’ target, at the edge of the salt lake, with results returning high-grade gold mineralisation and visible gold. Multiple parallel mineralised structures have been outlined beneath a very large aircore gold footprint and bedrock gold mineralisation is present over 600 metres of strike and open. A UAV magnetic survey identified multiple northeast-trending structures. More surveys are planned to further refine and assist in targeting.
Management Team
Allan Kelly - Executive Chair
Allan Kelly is a geologist and manager with over 30 years’ experience in mineral exploration, development and production throughout Australia and the Americas. Kelly graduated in 1994 with a Bachelor of Science (with honors) in applied geology from Curtin University. He has been involved in targeting early-stage exploration of gold, nickel and copper deposits in Australia, Alaska and Canada, and has previously held senior exploration positions at Western Mining Corporation and Avoca Resources.
In 2009, he founded Doray Minerals, which was listed on the ASX in early 2010. Under Kelly's management, Doray discovered the high-grade Wilber Lode gold deposit within the Andy Well Project in the Murchison Region of Western Australia, which moved from discovery to production within three and a half years. He subsequently funded, constructed and commissioned the Deflector gold-copper project within 14 months of completing the takeover of Mutiny Gold in 2014.
In 2014, Kelly was awarded the Association of Mining and Exploration Companies (AMEC) ‘Prospector Award’, along with Doray’s co-founder Heath Hellewell, for the discovery of the Wilber Lode and Andy Well gold deposits. He is a fellow and former councilor of the Association of Applied Geochemistry (AAG), a member of the Australian Institute of Geoscientists (AIG), and a member of the Institute of Brewing and Distilling (IBD).
Marion Bush - Technical Director
Marion Bush is a geologist with over 25 years’ experience in senior management, directorship, commercial management, analyst and marketing roles within the UK, Australia, Africa and South America. She was the former CEO of TSX-V listed Cassidy Gold and a former mining analyst.
Bush holds a Bachelor of Science (geology) from Curtin University, a Master of Science (mineral project appraisal) from the University of London (Imperial College) and is a member of the AIG.
Terry Gadenne - Non-executive Director
Terry Gadenne has over 30 years’ experience in military and civilian aviation, agriculture and mining management. He was the chief pilot of Mackay Helicopters and managing director of Mining Logic, located in Queensland. Throughout his career, Gadenne has had various board positions in not-for-profit organisations.
He holds a Bachelor of Aviation Studies (management) from the University of Western Sydney, completed the Company Directors Course with AICD and was a former army and navy pilot.
Mindy Ku - Company Secretary
Mindy Ku has over 15 years' international experience in financial analysis, financial reporting, management accounting, compliance reporting, board reporting, company secretarial services and office management across multiple jurisdictions (Australia, Malaysia, UK, Sweden and Norway) including ASX-listed public and private companies.
Ku holds a Bachelor of Science in computing from the University of Greenwich, United Kingdom, is a member of Certified Practising Accountant Australia and a fellow member of the Governance Institute of Australia.
Drilling Confirms Discovery of Large Platreef-Style Copper-PGE Sulphide Reefs at Dante
Terra Metals Limited (ASX:TM1) (“Terra” or “Company”) is pleased to announce that results from a further 14 wide-spaced, first-pass reconnaissance drill holes at the Dante Reefs has confirmed the discovery of multiple Platreef-style copper-PGE sulphide reefs. Defined over 4.5km thus far across Reef 1 and Reef 2, mineralisation remains open along strike and downdip, with assays pending from a further 16 drillholes covering an additional 4.5km of strike at Reef 2.
Highlights
- Results from a further 14 drillholes confirm the discovery of multiple Platreef-style copper- platinum group element (PGE) reefs from surface at the Dante Reefs; only 15km from BHP’s $1.7 billion Nebo-Babel mine development (390Mt @ 0.30% Cu, 0.33% Ni, 0.23g/t PGE3)1.
- Drilling results to-date confirm that the Dante Reefs have the potential to host a large sulphide deposit containing copper, gold, PGEs, vanadium and titanium; the first of its kind in Australia.
- The Dante Reefs are a series of gentle dipping, laterally extensive, mineralised layers (similar to a coal seam) which outcrop from surface and in total run for 42km.
- Approximately 10m thick with a higher-grade basal layer of approximately 5m.
- Mineralisation defined over 3km in length from surface at Reef 1*, while first assays at Reef 2* confirm a further 1.5km of strike.
- Other globally significant reefs include those of the Bushveld Province in South Africa which average 1-2m in thickness.
- Highlights from further wide-spaced, first-pass drilling at the Dante Reefs include:
- 6m @ 0.40% Cu, 0.79g/t PGE3, 0.66% V2O5, & 19.9% TiO2 from 4m (HRC004), including:
- 2m @ 0.62% Cu, 0.85g/t PGE3, 0.71% V2O5 & 22.3% TiO2 from 6m
- 5m @ 0.34% Cu, 0.84g/t PGE3, 0.81% V2O5, & 21.2% TiO2 from 21m (URC005), including:
- 3m @ 0.43% Cu, 0.94g/t PGE3, 0.88% V2O5 & 24.1% TiO2 from 23m
- 7m @ 0.31% Cu, 0.61 g/t PGE3, 0.71% V2O5, & 20.7% TiO2 from 17m (URC011)
- 10m @ 0.82g/t PGE3, 0.11% Cu, 0.44% V2O5 & 10.5% TiO2 from 66m (HRC002), including:
- 3m @ 2.22g/t PGE3, 0.20% Cu, 1.08% V2O5, & 23.5% TiO2 from 68m
- 5m @ 0.30% Cu, 0.81g/t PGE3, 0.70% V2O5, & 19.1% TiO2 from 71m (URC006), including:
- 2m @ 1.57g/t PGE3, 0.31% Cu, 0.99% V2O5, & 23.2% TiO2 from 74m
- 3m @ 1.40 g/t PGE3, 1.00% V2O5, & 21.0% TiO2 from 9m (URC008)
- 6m @ 0.40% Cu, 0.79g/t PGE3, 0.66% V2O5, & 19.9% TiO2 from 4m (HRC004), including:
- The copper-PGE mineralisation includes high-grade vanadium and titanium, critical for renewable batteries and specialty steel. Conventional metallurgical tests have commenced.
- Assays from 16 drill holes still outstanding from a further 4.5km of strike at Reef 2.
- The Company anticipates publishing an initial exploration target for Reef 1 in the near future.
Managing Director and CEO, Thomas Line, commented:“Weareexcitedtohavediscovered multiple Platreef-style copper-PGE sulphide reefs from a first pass-reconnaissance drilling program at the Dante Project; the firstofits kindin Australia. Our next step is to continue to replicate these resultsovertheextensivestrikeattheDanteReefs,ensuringwearewellpositionedforsuccess.
“It’s clear that there is a concentration and combination of high value metals within the same layers in the Dante Reefs. Chalcocite and bornite appear to be the dominant copper-sulphides. Our highly experienced metallurgical team, led by Dr. Evan Kirby, have already commenced initial metallurgical test work, focusing on the application of conventional flowsheets.
“The discovery of similar style reefs in the Bushveld Province of South Africa has resulted in some of the world’s largest, longest running and most profitable PGE, copper, nickel, gold, vanadium and titanium mining operations with over 100 years of ongoing production. The stratiform reefs of the Bushveld average 1 to 2 metres in thickness and require complex underground mining operations; however, their centennial mine life exemplifies how successful these types of deposits can be. The 120 million tonne Platreef Deposit, which is thicker than the other reefs in the Bushveld, sits 600m beneath the surface requiring immense infrastructure including one of the world’s largest hoist-shaft to extract the ore to the surface.
“The Dante Reefs, however, outcrop from surface over more than 40km of strike, with a gentle dip and an average thickness of approximately 10 metres with a higher-grade basal reef layer, and a second, upper reef layer of lower grade but similar thickness.
“This is just the beginning of the discovery story at the Dante Project, where the vast majority of targets and strike remain undrilled. New insights at the Cronus Prospect are highlighting possible vectors for higher-grade magmatic sulphides. We look forward to presenting these along with further assays in the coming weeks.”
Click here for the full ASX Release
This article includes content from Terra Metals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Gold and Critical Minerals Exploration Presentation
Gold Coast Investment Showcase 19-20 June 2024
Forward-Looking Statements
Statements in this presentation which are not statements of historical facts, including but not limited to those relating to the proposed transactions, are forward-looking statements. These statements instead represent management's current expectations, estimates and projections regarding future events.
Although management believes the expectations reflected in such forward-looking statements are reasonable, forward-looking statements are based on the opinions, assumptions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward- looking statements. Accordingly, investors are cautioned not to place undue reliance on such statements.
Competent Person Statement
The information in this report that relates to Exploration Targets or Exploration Results is based on information compiled by Allan Kelly, a “Competent Person” who is a Member of The Australian Institute of Geoscientists. Allan Kelly is the Executive Chairman of Miramar Resources Ltd. He is a full-time employee of Miramar Resources Ltd and holds shares and options in the company.
Allan Kelly has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity being undertaken to Qualify as a “Competent Person” as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Allan Kelly consents to the inclusion in this presentation of the matters based on his information and in the form and context in which it appears.
Information on historical results for all projects within this presentation, including JORC Table 1 and 2 Information, is included in the Miramar Resources Limited Prospectus dated 4 September 2020.
JORC Table 1 and 2 Information for Miramar results for all projects within this presentation are included in the relevant ASX releases.
Click here for the full ASX Release
This article includes content from Miramar Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
What Factors Affect Copper Supply and Demand? (Updated 2024)
From wiring and plumbing to electric vehicles (EVs) and electronics, base metal copper is key for a range of important applications in various industries. In fact, it's even earned the moniker "Dr. Copper."
That's because copper's widespread uses make it a valuable indicator for global economic health. Knowing what drives copper prices today is therefore helpful for investors who are focused on the bigger picture for copper.
Even though the red metal took a COVID-19-induced dive in the early spring of 2020, both 2021 and 2022 turned out to be record-setting years for the copper price. That trend has continued this year — in May, copper hit yet another a fresh all-time high, reaching US$5.20 per pound on the Comex, which equates to US$11,464 per metric ton (MT).
The London Metal Exchange (LME) three month futures price also set a new all-time high that day of US$11,104 per MT.
With that in mind, what should investors know when tracking the copper price today? The following four factors have major impacts on supply and demand dynamics for copper products.
1. How does China affect copper demand?
China is the fourth largest copper-producing country in the world behind Chile, Peru and the Democratic Republic of Congo (DRC). However, China plays an outsized role in copper demand, accounting for about 55 percent of global consumption. Around 30 percent of China’s copper consumption is associated with its building and construction sector.
Spikes in demand from China have led to numerous jumps in copper prices over the years, while pullbacks in the second largest global economy have translated into dramatic slides in the price of the industrial metal.
For example, strong demand from China in 2020 and early 2021 pushed copper prices to record-breaking highs. However, signs of slowing demand in the second half of 2021, alongside the fiscal crisis surrounding Chinese real estate giant Evergrande (HKEX:3333), created a price environment that was marred with volatility.
Copper managed to hit a then record-high price of US$5.02 per pound in March 2022 on fears of supply chain disruptions following Russia's invasion of Ukraine. However, softer demand from China's real estate sector continued to weigh on the market throughout the second half of 2022 and much of 2023, placing downward pressure on copper prices. By mid-October 2023, the price of copper had dropped to a low of US$3.56 per pound.
Another way in which China shapes global copper prices is through its copper smelters. The nation leads the world in refined copper production, and has increased its refining capacity in recent years, as have India and Indonesia. In March of this year, Chinese smelters collectively cut output in the face of single-digit treatment and refining charges. Prices for the red metal jumped 3 percent on the news to reach US$4.12 per pound.
The increasing threat of a looming supply bottleneck amid rising demand for copper from the energy transition led copper to its most recent record high of US$5.20 per pound in May. Even so, China’s ongoing property sector crisis has continued to place downward pressure on copper prices alongside weak manufacturing data.
As of mid-June, the red metal was trading at around US$4.50 per pound.
2. How much copper is needed for the energy transition?
From renewable energy and storage applications to EVs and charging infrastructure, copper’s conductive properties have given it an important role in the energy transition, which is gaining steam worldwide.
During his “Catalyzing Minerals for Development” keynote presentation at this year's Prospectors & Developers Association of Canada (PDAC) convention, Dr. Michael Stanley, mining lead for the World Bank, explained that the energy transition will completely disrupt the century-long demand pattern for metals critical for infrastructure such as copper.
“This is very important, because the world is now challenged to replace electric systems and energy systems that the last 150 years have underpinned all economic development,” he explained to the audience.
Just looking at EVs, this sector of the auto market is expected to require much more copper usage compared to internal combustion engine (ICE) vehicles. While the average ICE vehicle contains about 22 kilograms of copper, according to researchers at Wood Mackenzie, that figure increases to 40 kilograms and 55 kilograms for hybrid EVs and plug-in hybrid EVs, respectively. Fully battery-powered EVs use even more, at 80 kilograms of the red metal.
As for renewable energy technologies, the Copper Development Association pegs copper demand from solar installations at about 5.5 MT for every megawatt, while onshore and offshore wind turbines will require 3.52 MT and 9.56 MT of copper, respectively. As governments and industries strive to meet ambitious climate goals, copper demand from this sector is expected to escalate. A 2022 study from S&P Global indicates that achieving net-zero carbon emissions by 2035 would likely lead annual copper demand to nearly double to reach 50 million MT.
Unfortunately, the prospect of meeting this expected demand from the global energy transition is challenging given the vast amount of new copper mine supply that will be required. A May 2024 International Energy Forum report projects that by 2050 as many as 194 new copper mines may be needed to satisfy this growing segment of the market.
This looming supply/demand imbalance has analysts projecting massive deficits. According to McKinsey & Company, demand from energy transition technologies will push the copper supply deficit to 6.5 million MT by 2031.
3. How does mine production affect copper supply?
Mine disruptions are another important influence on copper prices.
In 2020 and 2021, the main cause for mine disruptions was the operational shutdowns resulting from the COVID-19 pandemic. Copper-mining operations in Chile, Peru and Mexico experienced the worst of it.
More typically, these disruptions are attributed to extreme weather, natural disasters, permitting or labor disputes, which have been known to halt production for weeks and months on end. BHP's (NYSE:BHP,ASX:BHP,LSE:BHP) Escondida mine in Chile has faced labor strikes and narrowly averted strikes several times over the years. In June 2024, the mining giant warded off another potential strike at Escondida with a preliminary wage agreement, according to BNN Bloomberg. The mine’s output alone accounts for about 1 percent of global copper mine supply.
In late 2022, protests against the government in Peru's mining-heavy regions turned deadly, and the disruptions continued into 2023. Nevertheless, Peru remained the second largest producer of copper in 2023.
Looking forward, however, Victor Gobitz, president of Peru's biggest copper mine Antamina, told Reuters that the ongoing crisis is dissuading investments in greenfield copper projects. Antamina is a joint venture between Glencore (LSE:GLEN,OTC Pink:GLCNF), BHP, Teck (TSX:TECK.B,TSX:TECK.A,NYSE:TECK) and Mitsubishi (TSE:8058).
Another issue facing mine production is the growing significance of the DRC in global mine production, a nation fraught with instability. The DRC ranked third in global production last year and is on the verge of overtaking Peru. Unfortunately, it is plagued by political upheaval, as well as corruption and human rights abuses associated with artisanal mining.
Perhaps the biggest setback for global copper mine supply came at the end of 2023, with the forced closure of First Quantum Minerals' (TSX:FM,OTC Pink:FQVLF) Cobre Panama copper mine in Panama. According to analysts at research firm ING, this “removed around 4,000,000 tonnes of the metal from the world’s annual supply."
Although the government of Panama had approved a new 20 year extension to First Quantum’s mining license in October, public backlash led to protests and the Supreme Court eventually overturned the contract. Panamanian President Laurentino Cortizo ordered the Cobre Panama mine to close in November 2023.
Despite these dynamics, copper market watchers aren’t counting out the mine’s potential contribution to supply just yet. Following the May 2024 presidential elections in Panama, a new administration is set to take office in July, and First Quantum is expected to attempt to negotiate a restart. However, President-elect Jose Raul Mulino has said he will not hold talks unless the copper company drops its arbitration proceedings against Panama.
Even with these factors, global copper mine production still managed a small uptick in 2023, rising 0.46 percent over the previous year. The International Copper Study Group expects mine output in 2024 to increase by another modest 0.5 percent; however, the organization is projecting that copper production will jump by 3.9 percent in 2025.
4. How do inventory levels affect copper supply?
Rising copper inventories can weigh on the metal, while falling inventories can boost the copper price.
Declining inventories over the past few years have helped lift copper prices, with Shanghai Futures Exchange (ShFE) and LME inventories both experiencing significant drops during that time. The declines in these major stockpiles have sparked a rise in demand for scrap copper, also known as secondary copper.
So how much should investors pay attention to copper stockpiles?
Speaking to Reuters, Robin Bhar, head of metals research at Société Générale (OTC Pink:SCGLF,EPA:GLE), emphasized that it is important to look at inventories across the globe to get a better picture of the copper supply landscape. "The LME in theory is a barometer of supply and demand and looking at LME stocks you'd be pretty bullish on metals prices,” he said. “But if you look at the global picture and include ShFE and Comex, you probably want to be a bit more neutral.”
This year, copper inventories have soared, especially in China, on the back of weakening demand from the property sector and mediocre manufacturing data. According to Reuters, in the week leading up to June 7, ShFE registered copper stockpiles climbed to a 51 month high of 339,964 MT.
"Stockpiles in China usually follow a distinct seasonal patter, with strong builds at the start of the year, followed by equally rapid drawdowns from about March onwards," notes the news agency. "However, this year is different, with ShFE warehouses continuing to see huge inflows at a time when they are normally shipping metal out."
What's the outlook for copper?
In the long term, copper has many factors working in its favor. Supply-side challenges are expected to deepen in the years ahead alongside improving demand as the energy transition continues to take hold. Additionally, government legislation such as the US Inflation Reduction Act could be a boon for copper demand.
Kevin Murphy, director of metals and mining research at S&P Global Commodity Insights, believes economic uncertainty is exacerbating an already years-long lack of investment in copper deposit exploration and development.
“Over the past decade, we’ve added over half a billion tonnes of copper to global reserves and resources after replacing production,” he told attendees at PDAC earlier this year. "So we’re absolutely adding copper, but we’re adding it to old assets, we’re adding it to mines, we’re adding it to projects that have been discovered 30 or 40 years ago that aren’t in production, and unfortunately, they aren’t in production for very good reasons."
The ensuing supply deficit will likely bolster copper prices. S&P Global's copper market forecast for the 2024/2025 period sees the price of copper averaging US$4.05 per pound, or US$8,928 per MT, in 2024; in 2025 it's then seen increasing to US$4.24 per pound, or US$9,347 per MT. Goldman Sachs (NYSE:GS) ismore bullish on the red metal, projecting a copper price of US$6.80 per pound, or US$15,000 per MT, by 2025.
This is an updated version of an article originally published by the Investing News Network in 2015.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Miramar to Present at Gold Coast Investment Showcase Conference
Miramar Resources Limited (ASX:M2R, “Miramar” or “the Company”) is pleased to advise that the Company’s Executive Chairman, Mr Allan Kelly, will be presenting at the Gold Coast Investment Showcase at 9:30am (EST) on Thursday, 20th June 2024.
Mr Kelly’s presentation will be live-streamed and can be accessed via the following link: https://www.goldcoastinvestmentshowcase.com.au/livestreamingregistration
In addition, the presentation will be recorded and made available via the Company’s website after the Conference.
Shareholders wanting to come along to the conference can register via this link: https://vert.eventsair.com/gold-coast-investment-showcase-2024/freeregistration/Site/Register
Miramar Executive chairman, Mr Allan Kelly, and Technical Director, Ms Marion Bush will be exhibiting at Stand 11.
Click here for the full ASX Release
This article includes content from Miramar Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Successful completion of Retail Entitlement Offer
Highlights:
- The Retail component of the Entitlement Offer (Retail Entitlement Offer) closed on 12 June 2024, with approximately $1.3m in successful applications received.
- The total unallocated shortfall remaining from the Entitlement Offer (Unallocated Shortfall) is approximately $6.4m. The Unallocated Shortfall is fully underwritten by Canaccord Genuity (Australia) Limited (Canaccord) and Morgans Corporate Limited (Morgans) (the Underwriters).
The Retail Entitlement Offer closed at 5.00pm (AEST) on 12 June 2024. The Retail Entitlement Offer was on the same terms as the Institutional Entitlement Offer, which was an offer of new fully paid ordinary shares (Shares) in the capital of the Company on a 1 for 2 basis at an issue price of $0.056 per Share.
Summary of the Entitlement Offer Results
Results of the Retail Entitlement Offer are as follows:
Underwriting and Shortfall
The Entitlement Offer is fully underwritten by the Underwriters pursuant to an underwriting agreement dated 23 May 2024 between the Company and the Underwriters (Underwriting Agreement), as detailed in the replacement prospectus released on 24 May 2024 (Prospectus). The total Unallocated Shortfall Shares will be allocated and subscribed for pursuant to the Underwriting Agreement. This will include allocations to sub-underwriters, including Tembo Capital Holdings UK Limited (Tembo) and Nebari Natural Resources Credit Fun II LP (Nebari), who each committed to sub-underwrite the Retail Entitlement Offer for up to $2 million and $0.5 million, respectively.
The Shares to be issued under the Retail Entitlement Offer will rank equally with the existing Shares on issue in all respect. The Shares under the Retail Entitlement Offer are expected to be issued on Wednesday, 19 June 2024 and commence normal trading on Thursday, 20 June 2024.
Key Dates
Capital Raising Overview
Canaccord and Morgans acted as joint lead managers and underwriters to the fully underwritten $24.3 million capital raising announced on 23 May 2024, comprising:
- an institutional placement of approximately 135.2 million Shares utilising the Company’s available capacity under ASX Listing Rules 7.1 and 7.1A, to raise A$7.6 million (Placement); and
- a 1-for-2 pro rata accelerated non-renounceable entitlement offer of 298.2 million Shares to raise $16.7 million.
The proceeds from the capital raise will be used to fund TNC through to steady state production at the Cloncurry Copper Project (including contingency, working capital, and other corporate expenses), strengthen its financial position and fund exploration to grow resources and reserves at Cloncurry and target new discoveries at its Mt Oxide Project in 2024.
Refer to the Prospectus and the Company's announcements on 23 May 2024 and 24 May 2024 for further details.
Click here for the full ASX Release
This article includes content from True North Copper, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Entitlement Offer Prospectus
This Prospectus is primarily being issued for a non-renounceable pro-rata offer to Eligible Shareholders of 1 New Share for every 10 Shares held on the Record Date, at an issue price of $0.04 per New Share (Entitlement Offer).
This Prospectus is also being issued for the Top-Up Offer and Shortfall Offer described in this Prospectus.
The Entitlement Offer and Top-Up Offer close at 5.00pm (AWST) on 5 July 2024 (Closing Date).*
Click here for the full ASX Release
This article includes content from Firetail Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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