Copper Is Not Critical – It Is Strategic

By Tshepo Magagane

Copper ore shortage – the market does not understand or even begin to appreciate how much lack of ore is already there before we even talk about the Transition.

2 yrs back sitting with a smelter operator (who has now actually put it on C&M), he went “I am getting investor offers to expand…but Tshepo I am not that shady entrepreneur…I can take the money and go and spend it in Greece on a beach…but I simply dont have any new ore”!

Or when you perambulate across the Copperbelt, you will come across these scouts – wait for it – from “END USERS” who are looking for new ore.

And any bit coming out ends up in Chinese hands…

When the world wakes up to this reality, those sitting on new projects and can do anything and everything to keep advancing them…

…will be sitting on gold mines…

…you see that USD2bn price tag for Khoemacau – it has definitely gone to USD5bn. [last week when looking at the USD50m expected by Jubilee from 14ktpa, I went that is min USD500m val before control premium + strategic premium + incentive price movement]

Eventually you are going to see “zero entry points into Copper assets” – Copper is not Critical – it is Strategic – you dont have it; you will be de-industrialised!

PS: also see BB reporting biggest drawdown of Russian Copper by Glencore…