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At the start of 2015, analysts were predicting more of the same for copper prices this year, and that forecast wasn’t far off. Still, there was certainly some news from the sector this quarter. Here’s a look at some of the top stories from Copper Investing News from the first quarter of 2015.
While the price has started to creep up since hitting a low in January, it’s down since the start of the year and is still sitting at less than $3 per pound. Certainly, issues on the supply side have helped contribute to more positive sentiment in the space, but investors are still keeping an eye on demand from China as a key driver for the metal.
Still, there was certainly plenty of news from the sector this quarter. Here’s a look at some of the top stories from Copper Investing News from the first quarter of 2015.
1. Analysts See Copper Price Moving Higher
At the start of March, both Dundee Securities and Macquarie Research expressed positivity about the outlook for copper. Dundee suggested that there could be “a good chance that the copper price bottom is behind us,” while Macquarie said that supply and demand fundamentals outweighed potential headwinds for the metal. The firms also mentioned copper sector picks such as Lundin Mining (TSX:LUN), Hudbay Minerals (TSX:HBM), First Quantum Minerals (TSX:FM) and Nevsun Resources (TSX:NSU). Click here to read the full article.
2. Don’t Get Hung Up on Short-term Copper Prices: Lawrence Roulston
During a panel discussion at the 2015 Vancouver Resource Investment Conference, Lawrence Roulston of Quintana Resources Capital and Resource Opportunities shared his views on the copper price and market. Overall, his advice was not to get hung up on short-term prices, and he suggested that while there might be short-term ups and downs in the market, he sees copper consumption growing long term. In terms of company picks, Roulston mentioned Mindoro Resources (TSXV:MIO), Copper Mountain Mining (TSX:CUM) and Morien Resources (TSXV:MOX). Click here to read the full article.
3. Is Copper Going Up or Down in 2015?
There have been plenty of conflicting predictions about where copper is headed this year. In January, Goldman Sachs (NYSE:GS) lowered its outlook for the copper price while Moody’s changed its outlook for the base metals sector from “stable” to “negative.” However, Credit Suisse (NYSE:CS) was more positive on the red metal, citing a proposed US$68.7-billion investment in China’s power transmission lines that was reported at the start of the month. Click here to read the full story.
4. A Look at Historical Copper Prices
This article looks at how the copper price has performed historically, mentioning a number of developments that have influenced the copper industry and the metal’s price. For example, the rise of modern heap-leach technology in the 1980s opened up larger, low-grade deposits for mining. Overall, the red metal’s price has actually gone up substantially in the past 15 years alone. Click here to read the full article.
5. Copper Outlook 2015: More of the Same in Store
2014 wasn’t a breakout year for copper, and analysts weren’t predicting a big change for the red metal at the start of 2015. Stefan Ioannou of Haywood Securities saw the price sitting between $3 and $3.25, but also predicted — accurately of course — that the price could dip below $3 per pound for a certain amount of time. Steven Dischler, CEO of Quaterra Resources (TSXV:QTA,OTCMKTS:QTRRF), and Fiona Childe, vice president of corporate development at Foran Mining (TSXV:FOM), also weighed in on the subject. Click here to read the full article.
Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.
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