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Investing Guides
Completion of Acquisition of Highly Prospective Copper Projects in Northern Territory
May 11, 2021
Highlights:
- Agreement to acquire a portfolio of copper-gold and base metals assets in Australia’s Northern Territory now completed
- Assets include: Oonagalabi Copper-Zinc Project, Paradise Well Copper-Gold Prospect and the Silver Valley Copper-Gold-Silver-Lead Prospect, which combined cover approximately 840 km1
- Oonagalabi best intersections from historical drilling include 36.6m at 1.0% copper and 1.7% zinc from 1.5m, 5m @ 1.26% copper and 1.22% zinc from 70m, 6m at 0.9% copper from 102m and 14m at 0.7% copper from 148m1
- Paradise Well rock chip samples returned up to 8.9% copper and 2.2g/t gold, Silver Valley rock chip samples returned 554 g/t silver, 20% lead, 9% copper and 2 g/t gold, providing exciting earlier stage exploration potential1
Comet Resources Ltd(“Comet” or “the Company”) (ASX: CRL) is pleased to advise that it has now finalised its due diligence and has completed the acquisition of a portfolio of highly prospective copper-gold-zinc-silver-lead assets in the Northern Territory of Australia (“Portfolio”) from Bath Resources Pty Ltd (“Vendor” or “Bath”).
Commenting on the proposed acquisition, Comet Resources Managing Director Matthew O’Kane stated “With copper prices recently touching records highs, it’s a great time for us to add this portfolio of both advanced and early stage copper, gold and base metals targets to our existing copper exposure. Being located in Australia, a Tier 1 mining jurisdiction, they complement our existing copper and base metals project at Barraba in NSW and provide us with further exposure to copper upside. Industry analysts believe copper prices will continue to strengthen as a result of increased global infrastructure spending and the transition to clean energy. We look forward to getting onto the ground in the Northern Territory shortly to review the projects and make plans for the commencement of field exploration activities.”
For the full press release, click here.
CRL:AU
17 March
International Graphite Funding Deal with Comet Resources a Win-Win, Report Says
International Graphite’s (ASX:IG6) $1.5-million funding deal with major shareholder Comet Resources (ASX:CRL) resulted in a surge in IG6’s shares on March 13. The loan agreement was undertaken to address market speculation on the security of Comet’s shares in IG6, according to a news report from The West Australian.
“Management says the strategic funding transaction will prevent the potential sell down of any of the 40 million International Graphite shares owned by Comet – which delisted from the ASX in January – when they are released from escrow next month,” the report said.
The funding deal included giving International Graphite a majority seat on the Comet board, as IG6 management has called the deal a win-win for shareholders.
Click here to connect with International Graphite (ASX:IG6) for an Investor Presentation.
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27 December
Top 5 Most-popular Copper Stories of 2024
As the year closes, we're taking a look back at our most popular copper news articles of 2024.
Copper performed strongly in 2024, setting a record all-time high of US$5.11 per pound in May. Although the red metal's price declined in the third quarter, values remained elevated compared to the past two years.
The need for more copper to support the energy transition was a significant point of discussion as well, and analysts weighed in on just how much is needed.
Read on for the list of our top five copper stories of 2024, including updates on what has happened since.
1. Chinese Copper Smelters to Trim Output in Response to Falling Margins
On July 16, Chinese smelters Daye Nonferrous Metals (HKEX:0661) and Baotou Huading Copper Industry Development made headlines following their decision to cut production outputs in 2025.
The former, a major company, reported a planned 20 percent cut, while the latter, a smaller firm, announced a 40 percent reduction.
Both smelters attributed the decrease to “diminishing profit margins caused by an ongoing shortage of ore concentrate,” as reported by Bloomberg.
Other factors affecting the decision include the decrease in smelter utilization rates caused by low treatment and refining charges towards the end of 2024 and significant production losses.
Daye Nonferrous Metals' half-year earnings reveal revenue was up by 55 percent compared to the first half of 2023, largely attributed to a resumption of smelting at its plant.
2. BHP: Global Copper Demand to Surge 70 Percent by 2050
Mining giant BHP (ASX:BHP,NYSE:BHP,LSE:BHP) forecast that copper demand will reach over 50 million metric tons by 2050.
In a September 30 report, BHP said, “Unlike the 20th century, where the adoption of cars, electricity, consumer electronics and white goods occurred at different times across various regions, we expect to see more-or-less concurrent adoption of the copper-intensive technologies of EVs, renewables and data centres around the world.”
The company anchored its predictions on several factors, namely traditional economic growth, the ongoing global energy transition and the expansion of digital infrastructure.
Global efforts are currently intensified to curb greenhouse gas emissions, resulting in a projected rise in copper demand.
Current copper mines are expected to supply more than half of the copper needed to meet global demand over the next decade. However, by 2035, production from these mines could decline by 15 percent due to decreasing ore grades, highlighting the urgent need for significant investment in upgrades and new projects to sustain supply.
Despite these challenges, the pace of new copper discoveries has dramatically slowed, with only four major finds in the last five years. This scarcity of greenfield projects poses a substantial challenge to meeting future demand.
In summary, major market players like BHP will need to adopt innovative strategies and make substantial investments to bridge the gap, ensuring a stable supply of copper as industries increasingly rely on the metal for clean energy solutions.
3. IEF: World Needs 35 to 194 New Copper Mines by 2050 to Support Massive Demand
The International Energy Forum (IEF) also published a significant copper report in 2024, which highlighted the need for more copper mines by 2050 and government support and incentives for these projects.
The report singled out limited exploration as one of the copper market’s biggest challenges at the moment. It also discussed the long periods between discovery and production.
“New copper mines that started operation between 2019 and 2022 took an average of 23 years from the time of a resource discovery for mines to be permitted, built, and put into operation,” it said.
The IEF detailed multiple copper demand scenarios through 2050. For business as usual there would need to be 35 new copper mines by 2050; EV plus grid would require 54 new copper mines; and net-zero by 250 would require a massive 194 new copper mines.
IEF Secretary General Joseph Mongle emphasized that without changes in current policies, 100 percent realization of EV adoption would not be possible.
“To make the best use of available copper supply, governments should prioritize economy-wide electrification, which is the foundation of climate policy. Moreover, governments need to incentivize and support new copper mine projects,” he said.
4. LME Sanctions on Russian Metal Push Copper, Nickel and Aluminum Prices Higher
On April 12, the British government and the US Department of the Treasury announced bans of Russian aluminum, nickel and copper on the London Metal Exchange (LME) and Chicago Mercantile Exchange (CME).
The LME is the oldest and largest metals trading forum in the world, responsible for setting benchmark prices for metals such as aluminum and zinc.
The news led to increases in the prices for all three metals, with aluminum jumping 9.4 percent — its largest one day increase since 1987 — nickel soaring by 8.8 percent and copper getting a smaller 1.6 percent bump.
The restrictions cover any metal produced in Russia starting April 13. Owners of Russian metal produced before the said date were allowed to place their metal on LME warrant, provided they furnish evidence of production dates.
The ban is part of continuing sanctions imposed by the US and UK on Russia due to its invasion of Ukraine. Trading of Russian metals outside of the LME and CME's systems is not included in the ban.
There have been no updates on the restrictions as of this writing.
5. Goldman Sachs Cuts Copper Price Forecast on Weak Chinese Demand
While the reports above discussed the increasing demand for copper, China’s demand for the red metal was reportedly weakening due to a slow economic recovery.
Supporting this claim was American investment bank Goldman Sachs (NYSE:GS), which in September significantly lowered its 2025 copper price forecast due to that factor. The firm reduced its prediction to US$10,100, a large dip from the previous US$15,000 forecast.
According to Bloomberg, the US$15,000 prediction came from former analysts Jeffrey Currie and Nicholas Snowdon, while the new outlook was outlined in a note by analysts including Samantha Dart and Daan Struyven.
"Softer-than-expected China commodity demand, as well as downside risks to China’s forward economic outlook, lead us to a more selective, less constructive tactical view of commodities," the analysts said.
Copper reportedly had an average monthly price of over US$9,000 per metric ton in November, down from its over US$11,000 per metric ton price record in May.Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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23 December
5 Best-performing Junior Copper Stocks on the TSXV in 2024
Copper prices saw significant momentum in the first half of the year, surging above the US$10,000 per metric ton mark on the London Metals Exchange.
Although prices have retraced to around the US$9,400 mark, they remain elevated in comparison to prices in 2023.
Support for the metal has come from a combination of factors including increasing demand from energy transition sectors that is coming alongside strained supply due to underdevelopment and geopolitical issues.
How have these dynamics affected small-cap copper explorers on the TSXV? Below are the five best-performing junior copper stocks since the start of 2024. Data for this article was gathered on October 16, using TradingView's stock screener, and all companies had market caps of over C$10 million at that time.
1. Koryx Copper (TSXV:KRY)
Year-to-date gain: 388.89 percent
Market cap: C$62.28 million
Share price: C$1.10
Koryx Copper is focused on the advancement of copper exploration projects in Namibia and Zambia. Its flagship asset is the Haib copper project located in Southern Namibia near the border with South Africa.
In an amended preliminary economic assessment released on January 8, the company indicated 20 million metric tons per year of ore processing with 85 percent copper recovery for a yearly production of 38,337 metric tons of copper and an additional 51,081 metric tons of copper sulfate.
Since the start of 2024, Koryx has published several assay results from exploration at Haib, the most recent came on August 8 when the company provided final results from its 2024 drill program. In the announcement, the company highlighted near-surface grades of 0.30 percent copper over 44 meters, including an intersection of 0.5 percent copper over 8 meters.
Company President and CEO Pierre Léveillé said the program demonstrates that the deposit can deliver grades over 0.3 percent copper for substantial width in the project area. He also said the results indicate above average grades in the outer limits of the deposit.
Following the final results, Koryx released an updated mineral resource estimate from Haib on September 10. The announcement reported indicated resources of 1.46 million metric tons (MT) contained copper from 414 million MT of ore at an average grade of 0.35 percent along with additional inferred resources of 1.14 million MT of copper from 345 million MT of ore at 0.33 percent.
The most recent news from Koryx came on October 15 when it announced it had closed an oversubscribed first tranche of its non-brokered private placement. The company said it had raised C$9.67 million in funding for the sale of 8.79 million common shares and would be increasing the size of the offering up to C$17 million. Koryx noted that the second tranche was fully subscribed and would be closing shortly.
Funds raised will be used to advance the Haib copper project and the Luanshya West copper-cobalt project in Zambia as well as general working capital purposes.
Shares of Koryx reached a year-to-date high of C$1.24 on September 24.
2. Sandfire Resources America (TSXV:SFR)
Year-to-date gain: 244.44 percent
Market cap: C$317.24 million
Share price: C$0.31
Sandfire Resources America is a copper development company focused on its Black Butte copper project located east of Helena, Montana, in the US. In 2021, a state district court revoked the company's mine operating permit for Black Butte, halting construction activities of the underground mine.
Sandfire describes the project as one of the highest grade undeveloped copper deposits in the world; a resource estimate for the project's Johnny Lee deposit completed in 2020 reported measured and indicated resources of 10.9 million metric tons grading 2.9 percent copper for a total of 311,000 MT contained copper.
Shares of Sandfire soared following a February 26 decision by the Montana Supreme Court to reinstate the company's mine operating permit. The win is a crucial step for it to continue the construction of its mine.
Sandfire is working to improve Black Butte's economics as it works towards a final investment decision. The most recent update from the project came on July 25, when the company released an exploration update that highlighted high-grade copper intercepts of 12.8 percent copper over 13.2 meters.
Although, much of Sandfire’s focus in 2024 has been on the exploration and development of Black Butte, the company also has two copper-producing assets: Motheo in the Kalahari Copper Belt in Botswana and MATSA in the Iberian Pyrite Belt in Spain. In the company’s FY24 report released on August 29, Sandfire reported that it produced 109,000 MT of copper equivalent during the fiscal year, an increase of 47 percent over FY23.
Shares of Sandfire reached a year-to-date high of C$0.395 on May 12.
3. T2 Metals (TSXV:TWO)
Year-to-date gain: 234.78 percent
Market cap: C$15.93 million
Share price: C$0.385
T2 Metals is a copper exploration company that has spent 2024 focusing on advancing its Sherridon copper, gold and zinc project near Flin Flon, Manitoba, Canada.
The property consists of 28 mining claims and one mineral lease over 4968 hectares, with T2 holding an option agreement with Halo Resources for a 90 percent earn-in stake. The site was home to the Sherridon/Sherritt Gordon mine, which was in operation until 1955 and milled 7.55 million MT of ore with an average grade of 2.46 percent copper.
Today, Sherridon hosts several inferred resources with near-surface targets having been identified with limited drilling activity.
T2 has been exploring Sherridon in 2024, with the latest update coming on October 3 when it announced it had completed the summer/fall phase of its core drilling program, consisting of 2,180 meters across eight holes. The remaining 1,800 meters will be carried out in the first quarter of 2025 after the ground freezes.
The completion of summer drilling marked an expenditure milestone for T2 in its option agreement. The company now owns an 80 percent stake in Sherridon.
In addition to its work at Sherridon, T2 reported on September 18 that it had completed a follow up sampling and mapping at its early stage Copper Eagle project located in Douglas County, Nevada, US, and is awaiting results. Its past samples from the site indicated high sulfidation with elevated tellurium, selenium, antimony, copper and gold.
Share prices in T2 reached a year-to-date high of C$0.395 on October 14.
4. Hannan Metals (TSXV:HAN)
Year-to-date gain: 211.11 percent
Market cap: C$68.65 million
Share price: C$0.56
Explorer Hannan Metals is focused on advancing gold, silver and copper deposits in Latin America.
The San Martin project is a joint venture with the Japan Organization for Metals and Energy Security (JOGMEC), a Japanese government agency established in 2004 to secure stable resources and fuel supplies. Under the terms of the agreement, JOGMEC can earn up to a 75 percent stake in the project if all its funding goals are met.
The site is located northeast of Tarapoto, Peru, and hosts a copper and silver system with 120 kilometers of combined strike. Exploration has shown grades at the Tabalosos target of 4.9 percent copper and 62 grams per metric ton (g/t) silver over 2 meters.
In addition to the JOGMEC joint venture, Hannan wholly owns the Valiente project, which hosts a previously unknown porphyry and epithermal mineralized belt within a 140 kilometer by 50 kilometer area containing copper, gold, molybdenum and silver.
Results from two channel samples were reported in early August confirming extensive leached copper mineralization at the Previsto Central prospect. The two channels, separated by 700 meters, had grades of 0.22 percent copper over 126 meters and 0.16 percent copper over 192 meters. Hannah said the results continue to further their understanding of the mineralization system, with gold-rich areas at higher elevations that transition into copper-rich areas at lower elevations.
This was followed by news on October 8 that the company completed the first stage of an induced polarization geophysical survey at the Previsto prospect. Combined with its other data, the results confirm a 6 kilometer by 6 kilometer copper and gold porphyry epithermal mineralization system. Hannan said the survey identified seven high priority targets that the company is now evaluating for drilling.
Shares in Hannan reached a year-to-date high of C$0.63 on July 22.
5. Awalé Resources (TSXV:ARIC)
Year-to-date gain: 207.14 percent
Market cap: C$39.06 million
Share price: C$0.43
Awalé Resources is a copper and gold explorer focused on its Odienné project in Côte D’Ivoire.
The site, located in the country’s northwest, covers an area of 2,462 square kilometers across two granted permits and five under application; two are being advanced as part of an earn-in joint venture with Newmont (TSX:NGT,NYSE:NEM). Newmont has the chance to earn up to 65 percent ownership of the permits via exploration expenditures of US$15 million.
On May 15, Awalé announced it had advanced to the second phase of its earn-in agreement. The completion of phase 1 of the agreement comes after it had carried out drilling at the Charger and BBM targets during early 2024 exploration programs.
To earn the final 14 percent of the earn-in agreement requires Newmont to fund an additional US$10 million toward exploration of the project. Company CEO Andrew Chubb said that Awalé is on good footing to deliver exploration success between the funding from Newmont and Awalé's C$11.5 million bought-deal equity financing closed on May 8.
Awalé has delivered several exploration announcements in 2024, the latest coming on September 9, when it reported highlighted assays of 0.48 percent copper over 35 meters, including an intersection of 0.6 percent copper over 23 meters at the BBM zone.
Shares in Awalé reached a year-to-date high of C$0.98 on March 25.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Awalé Resources is a client of the Investing News Network. This article is not paid-for content.
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18 December
Gianni Kovacevic: 3 Copper Stocks for Speculators, Watch These Metals Under Trump
Investor and author Gianni Kovacevic shared his thoughts on copper market dynamics, saying that while the long-term trend is up, speculators can create significant shorter-term prices moves.
He also mentioned three copper companies he's interested in right now: CopperNico Metals (TSX:COPR,OTCQB:CPPMF), Entree Resources (TSX:ETG,OTCQB:ERLFF) and Horizon Copper (TSXV:HCU,OTCQX:HNCUF).
In addition to copper, Kovacevic spoke about the growing opportunity he sees in lithium, highlighting how major miners like Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) are increasing their exposure to this important battery metal.
"We are going to have a supply shortage. Not in the distant future — in the next 18 to 36 months it'll be a front-page story, and it will be dovetailed with ... oil and gas. And with that comes the oil and gas investor," he said.
Explaining his view, Kovacevic said oil and gas companies are becoming interested in direct lithium extraction.
"(The oil and gas investors) are the ones that are going to really take the speculation in lithium to the next level once again. It'll be 'lithium mania 3.0' coming to a screen near you," he told the Investing News Network.
Watch the interview above for more from Kovacevic on copper and lithium, as well as Donald Trump's second term.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, 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.
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17 December
5 Best-performing Copper Stocks on the TSX in 2024
Copper prices surged in 2024, breaking the US$5.00 per pound barrier for the first time and setting an all-time high on the COMEX of US$5.20 per pound on May 20.
Prices have since retreated but have largely traded above the US$4.00 per pound mark and above the average price of US$3.83 per pound in 2023.
Copper demand remained high in energy transition sectors. However, it was also affected by bottlenecks at Chinese smelters, which cut production during the first half of the year due to low treatment charges.
Against that backdrop, how have TSX-listed copper companies performed? Learn about the top five best-performing copper stocks in 2024 by year-to-date gains below. Data for this article was retrieved on December 16, 2024, using TradingView's stock screener, and only companies with market capitalizations greater than C$50 million are included.
1. Trilogy Metals (TSX:TMQ)
Year-to-date gain: 189.29 percent
Market cap: C$259.05 million
Share price: C$1.62
Trilogy Metals is a polymetallic exploration and development company working to advance its Upper Kobuk mineral projects in Northern Alaska, US, which it owns in a 50/50 joint venture with South32( ASX:S32,OTC Pink:SHTLF).
Its most advanced asset is the Arctic copper, zinc, lead, gold and silver project, which is in the feasibility stage. In an updated feasibility study from February 2023, the company reported annual payable production volumes of 148.68 million pounds of copper, 172.6 million pounds of zinc, 25.75 million pounds of lead, 32,538 ounces of gold and 2.77 million ounces of silver.
After tax, the study pegged the net present value at US$1.11 billion, with an internal rate of return of 22.8 percent and a payback period of 3.1 years.
Trilogy’s other key asset is the Bornite copper-cobalt project located 25 kilometers southwest of its Arctic project. The site hosts widespread mineralization and has seen historic exploration dating back to the 1950s. A January 2023 technical report estimates inferred resources at 6.51 billion pounds of copper from 202.7 million metric tons of ore with an average grade of 1.46 percent.
The company has spent much of this year advancing roadwork to provide access to its projects, but it has met some headwinds while working with the US Bureau of Land Management (BLM). In an April 22 update, Trilogy said that the BLM filed the final supplemental environmental impact statement, which identified “no action” as the preferred alternative. This move effectively blocks the construction of the access road.
Trilogy said it would review the final impact statement, consider options and determine the next steps. For its part, the BLM formally rejected the proposed access route in its June record of decision, but presented several alternatives that have lessened impact on BLM managed lands.
The company’s most recent news came on October 8, when Trilogy released its Q3 results.
Shares in Trilogy reached a year-to-date high of C$1.89 on November 22.
2. Northern Dynasty Minerals (TSX:NDM)
Year-to-date gain: 75.9 percent
Market cap: C$387.16 million
Share price: C$0.73
Northern Dynasty Minerals is an exploration and development company focused on the Pebble project, a copper-molybdenum-gold-silver project located 200 miles southwest of Anchorage in the Bristol Bay region of Alaska, US.
Northern Dynasty describes the site as “one of the greatest stores of mineral wealth ever discovered.” It hosts measured and indicated copper resources of 6.5 billion metric tons and inferred copper resources of 4.5 billion metric tons. Its measured and indicated resources for molybdenum, gold and silver total 1.26 million metric tons, 53.82 million ounces and 249.3 million ounces respectively.
The project stalled in 2020 during the permitting phase following a US Environmental Protection Agency (EPA) veto that suggested the proposed mine would damage the Bristol Bay watershed. However, shares of the company surged following Northern Dynasty's July 2023 announcement that the State of Alaska had appealed to the US Supreme Court to reverse the veto.
Earlier in 2024, the United States Supreme Court declined to hear the matter on procedural grounds, sending it back to the federal district court and federal circuit of appeals before the Supreme Court would hear it. In a release on January 16, Northern Dynasty said it was still working through state court.
Further updates on the case came on March 15, when the company said it had filed two separate actions to vacate the EPA’s veto, and on April 15, when the State of Alaska filed its own suit to vacate it. On June 26, the company reported that two Alaska native village corporations had also filed suits to overturn the EPA ruling.
The most recent news about the case came on August 19, when the Federal District Court in Alaska granted Northern Dynasty’s motion to modify the complaint against the EPA by adding the US Army Corps of Engineers (USACE) as a defendant. This request was made because Northern Dynasty said the EPA decision was based on the original USACE permit denial and should be linked. The company also said that it believes the actions taken by the EPA and USACE were wrongful and politically motivated.
Shares in Northern Dynasty reached a year-to-date high of C$0.76 on December 11.
3. NGEX Minerals (TSX:NGEX)
Year-to-date gain: 74.45 percent
Market cap: C$2.64 billion
Share price: C$12.63
NGEx Minerals, part of the Lundin Group, is a copper and gold exploration company focused on developing projects in Argentina and Chile. Its primary focus is the Los Helados and Lunahuasi (formerly Potro Cliffs) projects, both located within the Vicuña copper-gold district on the border of Argentina and Chile. The district is controlled by companies within the Lundin Group.
In December 2023, the company released an updated mineral resource estimate for Los Haldos, with indicated resources of 6.3 billion pounds of copper from 510 million metric tons of ore with an average grade of 0.51 percent. The estimate also included additional inferred resources of 600 million pounds of copper from 40 million metric tons of ore with an average grade of 0.62 percent.
NGEx shares have traded alongside rising copper and precious metal prices throughout the year, but several events have also significantly supported the company.
On February 20, the company announced it had received approval to begin trading on the TSX. At the time, company president Wojtek Wodzicki said the graduation marked a milestone for NGEx and would provide greater visibility and better access to fundraising opportunities.
The company's August 12 Q2 results further supported its shares. In the release, the company said it had completed a successful drill program at Lunahuasi, drilling 15 holes totalling 12,952 meters and noting that the system remained open in all directions.
It also indicated that the program returned several high-grade intersections, with one highlight measuring 2.31 percent copper equivalent over 429.4 meters, including an intersection measuring 4.26 percent copper equivalent over 102.7 meters.
The company said the results demonstrate significant size potential with high-grade mineralization occurring over an area of 900 by 400 meters and to depths of 960 meters.
The most recent news came on November 12, when NGEx released its Q3 results. In the report, the company said it had started the phase 3 drill program at Lunahuasi, with six rigs in operation and 20,000 meters planned. The program aims to grow the deposit via step-out drilling.
4. First Quantum Minerals (TSX:FM)
Year-to-date gain: 71.90 percent
Market cap: C$16.18 billion
Share price: C$18.60
First Quantum Minerals is a copper mining and development company with a global portfolio of assets.
Its primary asset is the Cobre Panama mine, located west of Panama City, Panama. The mine boasts 3 billion metric tons of proven and probable reserves and represents 1 percent of the world’s copper supply. The mine was ordered to close down in November 2023 after the Panamanian Supreme Court invalidated an extension to the mine's license.
In a December 2023 release, the company said it was working on developing a closure plan for the mine; however, it also noted that it was pursuing all appropriate legal avenues to protect its investment and rights.
In its Q1 results, released on April 24, First Quantum said it was continuing to work on a preservation and safe management plan for Cobre Panama and was also working to deliver the 121,000 metric tons of concentrate that remains on site.
Due to the ongoing situation in Panama, the company noted that it had undergone a refinancing program to improve its balance sheet and liquidity. This program included working out a prepayment agreement with Jiangxi Copper (SHA:600362,HKEX:0358) for US$500 million, the completion of a US$1.6 billion senior secured second lien at 9.38 percent due in 2029 and the issuance of 139.93 million common shares to raise US$1.15 billion.
The company also operates several mines in Zambia, including its Kansanshi copper-gold mine, Sentinel copper mine, and Enterprise nickel mine. Earlier in the year, First Quantum warned that production may be impacted in 2024 due to severe drought conditions caused by El Nino, which has reduced water levels in the Kafue and Zambezi rivers. The government declared a national emergency in March, and power generation in the country has been impacted.
First Quantum reported that it had minimized power disruptions due to offtake agreements signed with third-party traders for power sourced from the Southern African Power Pool. Due to increased power curtailments since the Q1 release, the company has had to increase the amount of power sourced from regional sources to 193 megawatts from the original 80 megawatts.
In the company’s third quarter results, First Quantum reported the production of 116,088 metric tons of copper, 11 percent higher than in Q2 but down from 221,550 metric tons produced in Q3 2023. The production drop was largely attributed to the closure of Cobre Panama, which contributed 112,734 metric tons during the quarter last year.
Cash costs came in at US$1.57 per pound during Q3, US$0.16 lower than the previous quarter. While the power deals pushed cash costs higher, the company mitigated costs through gold by-product credits during Q3, as well as higher copper production and lower fuel costs.
Both Kansanshi and Sentinel reported increased copper production during Q3. Kansanshi saw its highest levels since Q4 2021 with 49,810 metric tons, while Sentinel recorded copper production of 58,412 metric tons, an increase of 4,817 metric tons over Q2.
Shares of First Quantum reached a year-to-date high of C$20.70 on December 5.
5. Hudbay Minerals (TSX:HBM)
Year-to-date gain: 68.46 percent
Market cap: C$4.86 billion
Share price: C$12.23
Hudbay Minerals is a copper production and development company with producing mines in Peru and Canada. It also has projects in Peru and in the US.
According to Hudbay’s Q3 results, the Constancia copper mine and neighboring Pampacancha satellite pit in Peru produced a combined 21,220 metric tons of copper in the three months ending on September 30, an increase over the 19,217 MT produced in the previous quarter.
In Canada, Hudbay’s 75 percent-owned Copper Mountain mine in British Columbia produced 6,736 metric tons of copper, and its wholly owned Snow Lake operations in Manitoba achieved record results in the quarter. The operation produced 3,398 metric tons of copper, a 29 percent increase over Q2, when wildfires in the region impacted production. Both mines also produce gold and silver, and Snow Lake also produces zinc.
In addition to its mining assets, the company is advancing its Copper World project in Arizona, US. In its report for the first quarter, the company indicates that it is continuing to work on getting final state permits for the site and expects to receive them sometime in 2024. When complete, Copper World is expected to have a 20 year life.
According to a March 28 annual reserve and resource update, Copper World holds proven and probable average reserves of 385 million metric tons of ore grading 0.54 percent copper.
In an August 29 release, Hudbay announced it had received an aquifer protection permit from the Arizona Department of Environmental Quality. The company said the permit marks a key milestone and brings the project one step closer to being fully permitted.
The company is also working on its Mason project in Nevada, US. Hudbay is developing Mason as a long-term future asset with a 27 year mine life. A resource estimate shows measured and indicated resources of 2.22 billion metric tons at an average grade of 0.29 percent copper, and inferred resources of 237 million metric tons averaging 0.24 percent copper.
On May 24, Hudbay announced the completion of an upsized bought-deal offering, generating aggregate gross proceeds of US$402.5 million. The company said it intends to use the funds for near-term growth initiatives such as mill optimization at Copper Mountain.
Shares of Hudbay reached a year-to-date high of C$14.15 on May 20.
FAQs for investing in copper
Is copper a good investment in 2024?
Many experts have a positive long-term outlook for the red metal based on supply concerns and its growing role in the energy transition. Copper's price has climbed to new all time highs in 2024, bringing many stocks with it.
Investors who are interested in copper should make sure to perform their due diligence, as the volatility and unpredictability of markets and economies at the moment means that nothing is guaranteed.
What is copper used for?
Copper is used in many industries, from construction to electronics to medical equipment. In fact, in 2020, 32 percent of copper globally was used in equipment manufacturing and 28 percent in building construction.
Two other growing sectors for copper are the burgeoning electric vehicle and green energy industries. Electric vehicles require a significant amount of the red metal per vehicle.
How to invest in copper?
Investors can get exposure to copper in a variety of ways. Holding physical copper is possible, but plenty of storage would be required to hold any significant value of the metal.
For investors looking to invest in the metal without physically holding it, there are a few options. Copper stocks such as those on the TSX, TSXV and ASX are worth looking at. Additionally, there are copper exchange-traded funds and the copper options and futures markets on the London Metal Exchange.
How to invest in a copper ETF?
Copper exchange-traded funds (ETFs) can be a good way to diversify an investment portfolio, and they can be a more stable option compared to individual copper miners or explorers. There are multiple options available on the market, and they can usually be purchased in the same way one could purchase stocks through a broker or trading platform.
In May 2022, Horizons launched Canada’s first copper equities ETF, the Horizons Copper Producers Index ETF (TSX:COPP), which is focused solely on pure-play and diversified copper-mining companies.
There are two ETFs available on the US ARCA exchange as well. The Global X Copper Miners ETF (ARCA:COPX) tracks the Solactive Global Copper Miners Index, which includes copper miners, as well as copper explorers and developers. The other option is the United States Copper Index Fund (ARCA:CPER), which gives investors exposure to copper futures contracts by tracking the SummerHaven Copper Index Total Return (INDEXNYSEGIS:SCITR).
How is copper priced?
The copper price is tracked in two ways: COMEX copper and London Metal Exchange (LME) copper. The COMEX and LME are both options and futures metal exchanges, with the former being headquartered in New York and the latter in London. COMEX copper is priced by the pound, while LME copper is priced per metric ton.
How is copper processed?
Once copper is mined, the ore goes through multiple steps to reach a market-ready state. First, the ore is ground to roughly separate the rock from the copper, as copper typically only makes up 1 percent of the mined rock.
The resultant copper is then slurried with water and chemical reagents, after which air is used to float the copper to the top of the mixture. After the copper is removed from this, it is typically at 24 to 40 percent purity.
Lastly, the copper is refined at a refining plant or smelter using one of two methods, pyrometallurgy and hydrometallurgy. Pyrometallurgy is employed for copper ore that is sulfide rich, while hydrometallurgy is used when the ore is oxide rich. The Investing News Network's guide on copper refining goes into further detail about how those processes work. Once these processes are complete, the copper is concentrated to up to 99.99 percent purity.
Where is copper mined?
Copper is mined throughout the world, with significant production found on every continent besides Antarctica. Chile was the top producer in 2022, putting out 5 million metric tons of the metal. Rounding out the top five are Peru with 2.6 million MT, the Democratic Republic of Congo with 2.5 million MT, China with 1.7 million MT and the United States with 1.1 million MT.
Article by Dean Belder; FAQs by Lauren Kelly.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Dean Belder, own shares in Northern Dynasty Minerals.
Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.
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12 December
FireFly Metals Gets Approval to Dual List on Toronto Stock Exchange
FireFly Metals (ASX:FFM,OTC Pink:MNXMF) announced plans to dual list on Wednesday (December 11) after receiving conditional approval to trade on the main board of the Toronto Stock Exchange (TSX).
It will use the symbol FFM, the same symbol it uses on the Australian Securities Exchange (ASX).
The copper- and gold-focused company is set to debut on the TSX on December 16.
“(This) is a compliance listing only and will not be accompanied by a capital raising,” the company said, adding that it had AU$88 million in cash as of the end of October and is capable of fully funding its 2025 growth strategy.
FireFly is currently focused on growing the resource at its flagship Green Bay copper-gold project. It said in October that it is working toward the next resource update at the site, and expects it to come in the first half of 2025.
Green Bay is located in the Baie Verte district of Northeast Newfoundland, Canada, which is among the top 10 global mining investment jurisdictions, according to a 2023 Fraser Institute survey.
The project’s resource currently measures 460,000 tonnes at 1.9 percent copper equivalent within the measured and indicated categories, and 690,000 tonnes at 2 percent copper equivalent within the inferred category.
“Having established Green Bay as a high-grade, world-scale copper project, we believe the TSX listing will help the company capitalise on the strong interest among North American investors,” said Managing Director Steve Parsons.
Two of FireFly's board members are already located in Toronto, and the company believes listing in Canada will help it attract local exploration and development talent.
According to FireFly, existing shareholders will be able to trade their shares on the TSX.
“(Shareholders will only need to) request to reposition their shares from the Australian principal share register to the Canadian branch share register and establish an account with an appropriate broker,” the company explained.
FireFly's primary listing will remain on the ASX.
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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10 December
Lobo Tiggre: Copper is My Highest-Confidence Trade for 2025 — Here's Why
Lobo Tiggre, CEO of IndependentSpeculator.com, gave the Investing News Network his updated thoughts on the US economy, as well as his outlook for gold, silver and uranium in 2025.
However, he said his highest-confidence trade for next year is copper.
"I think that it's easier to see — and highly likely to see — copper moving higher next year," Tiggre explained.
That said, he's not quite ready to pull the trigger on copper stock purchases.
"I'm not rushing out to buy yet, because I think even in the little time we have left this year we're going to see more bad economic news, and Dr. Copper with a PhD in economics always goes down with that sort of news. So I'm looking to that as a buying opportunity — I'm looking to maximize my upside by taking advantage of that."
Watch the interview above for more from Tiggre on copper, plus gold, silver and uranium. You can also click here to view the Investing News Network's New Orleans Investment Conference playlist on YouTube.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, 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.
Affiliate Disclosure: The Investing News Network may earn commission from qualifying purchases or actions made through the links or advertisements on this page.
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