Copper Market Headed for Supply Crunch - Latest on Mine Production, Demand and Prices

Recording date: 9th November 2023The Battery Show (Copper Bottomed, Episode 5)This week's discussion covers recent exploration results and market news related to copper mining companies. Merlin starts with Arizona Sonoran who announced drill results from its Parks/Salyer and Cactus Mine projects in Arizona, USA. The company completed infill drilling at 38-meter spacings at both deposits, highlighting continued mineralization. The best results were 1.97% total copper over 165 meters at Parks/Salyer and 83 meters at 2.5% soluble copper at Cactus East.Valhalla Metals, a small exploration company with an $8 million market cap, reported results from its maiden 4-hole, 1100-meter drill program at the Sun project in Alaska, USA. Highlights included 21 meters at 6.8% copper equivalent. However, only 1.3% was actual copper, with the rest being zinc. The company used questionable assumptions for the copper equivalent calculation. Overall, the project relies on nearby infrastructure being built by Trilogy Metals.Benton Resources, market cap of $24 million, announced partial assays from its first drill program at the Great Burnt copper-gold project in Newfoundland, Canada. Early highlights included 4% copper over 3 meters and 8% copper over 4 meters. Due to early success, the initial 2000-meter program has been expanded to 4000 meters. However, the news release included confusing technical jargon and lacked cross-sections. Previous drilling delineated a 670,000-tonne resource at 3% copper.Imperial Metals, market cap of $312 million, drilled 165 meters at 3% copper at its Whitting Creek target, located 8.5km from its past-producing Huckleberry mine in British Columbia, Canada. The intersection is at the reserve grade of the former mine, which closed in 2016. More exploration work is underway to potentially expand resources and restart the Huckleberry Mine.Mine supply is expected to peak in 2026 while the project pipeline is low, pointing to supply shortages. $120 billion of investment is estimated to be needed over the next decade to fill supply gaps. Demand continues to grow, especially related to electrification and grid infrastructure. Overall, higher copper prices will be needed to incentivize new mine development.Learn more: https://cruxinvestor.com/commodities/copperSign up for Crux Investor: https://cruxinvestor.com