Gianni Kovacevic talks copper demand, EV expectations, the trade war, electrification and opportunities in helium investing.
The chunkier price tags for battery electric vehicles shouldn’t limit uptake because of purchasing habits in the west, says Copperbank (CSE:CBK,OTC Pink:CPPKF) CEO Gianni Kovacevic.
“In the west most people don’t pay cash for a car — they pay in monthly payments. So don’t be concerned (about higher prices) … when you amortize that over a lease payment of five years it’s peanuts, and you save a lot of money in the tank,” he said.
Kovacevic was speaking with the Investing News Network at the Vancouver Resource Investment Conference (VRIC) earlier this week. He gave his thoughts on the current state and future trajectory of the copper market.
“We know all the major manufacturers around the world are changing fundamentally at the chassis-level how they make cars. This takes two life cycles of a vehicle — eight years — until you really see the impact of that because the consumer, you and I, we need the offering. Price does matter.”
On those carmakers, Kovacevic said that, given the progress that is being made around the world, demand for copper isn’t something he is concerned about.
“Mercedes (OTC Pink:DDAIF,FWB:DAI), BMW (OTC Pink:BYMOF,ETR:BMW), Volvo and Volkswagen (OTC Pink:VLKAF,FWB:VOW) — all these companies are going to start buying millions and millions of kilometers of copper cable for the rest of your life.”
Kovacevic also touched on the impact of the trade war on copper. Although he noted that at the moment copper is “balanced,” he said there is a collision on the way with electrification pushing demand growth to 3.6 percent, whereas during the “boom” of 2000 to 2018, as China rushed to develop, the industry could only deliver 2.6 percent growth.
“Those numbers are going to collide very soon.”
He also talked about his interest in helium as a speculative commodity, noting that supplies are massively down while demand is still robust. Watch the full interview above for Kovacevic’s tips on where to invest in helium, as well as how and why, and click here to see our full VRIC playlist on YouTube.
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Securities Disclosure: I, Scott Tibballs, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.