COPPER, A VITAL METAL IN THE GREEN ECONOMY
Copper supply gaps, low inventories, increasing demand to support green energy transition, and political instability make copper projects in onshore secure regions like Intrepid Metals’ Arizona properties an attractive opportunity.
Copper, a vital metal in the green economy, is experiencing a supply shortfall as demand continues to grow.
Goldman Sachs foresees mid-term supply gaps for copper are widening despite medium term mining supply additions.
In addition, RBC forecasts copper inventories to remain below the critical level through 2025.
There is a growing recognition that mid-term supply gaps are widening as a result of copper demand to support the green economy. Goldman Sachs says energy transition-related copper demand growth (renewables, EVs, power grid) is increasing, the Inflation Reduction Act sped up EV and renewable demand in the US, and Europe has recommitted to electrification to avoid Russian gas and safeguard energy supplies.
RBC goes on to highlight the prominence of energy transition themes in the news media, indicating positive spill overs for investor sentiment in favour of copper.
Over the long term, tightness in long term supply is precariously based on supply expectations from unapproved projects, says Goldman, and RBC states that increasing demand in the long term is more than offsetting supply from new projects as existing mine supplies naturally decline.
Forecasters at National Bank echo similar sentiments, where they anticipate a growing structural deficit to take hold beginning in 2025 driven by stable long-term demand due to broader ‘Green Energy’ initiatives, increased spending on electrification and EV adoption.
Additionally, National Bank says longer-term forecast for copper remains optimistic due to a lack of advanced-stage projects and a structural shortfall in future years.
Traditional exploration regions also face greater risk (increased interventionism, project delays) and investors are increasingly looking to low-risk jurisdictions for mining projects.
CLIENT SPOTLIGHT
Intrepid Metals Corp. (TSXV:INTR):
Intrepid Metals is a new Canadian exploration company focused on exploring for potential high-grade copper, silver, lead, and zinc mineral projects in proximity to producing mines in south-eastern Arizona.
The Company has acquired several drill ready projects, including the Tombstone South and Mesa Well properties, and is actively looking to acquire additional projects in Arizona and the American Southwest.
Projects are strategically located in politically stable, well-integrated, advanced economic jurisdiction with known permitting and production histories.
Focused on copper as a critical mineral for the energy transition.
Led by an exceptional leadership team and advisory board with considerable experience in both evaluating and developing exploration projects within North America, and capital markets experience.
For a copy of their latest investor presentation, click here.
Connect with us at happyinvestors@irlabs.ca to learn more about Intrepid Metals.
Resources:
Goldman Sachs Equity Research - Copper Top Projects 2022: A deficit on the horizon, Sept. 1st 2022
RBC Capital Markets Copper Outlook – Opportunities for those willing to look through the cycle, but risks remain, Dec. 1st 2022
NBC Financial Markets - Industry Note: Base Metals Price Update, Oct. 12th 2022
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