Copper on the upswing

Copper in particular, which is imported into the USA, has become more expensive. Without copper, net-zero targets cannot be achieved. The AI infrastructure and AI technology are currently being massively expanded, which is greatly increasing the demand for electricity and therefore copper consumption. A looming shortage of copper is already being predicted. Supply problems and a lack of investment are looming. The green energy transition is making dynamic progress and the reddish metal is indispensable for electrification, from electric vehicles to the production, transmission and storage of renewable energy. There may already have been a copper deficit in 2024. This could increase to an estimated 2.6 million tons by 2030. According to calculations, demand for copper is set to increase by 23% by 2030. With the economic outlook not looking so rosy in recent months, various copper mining companies have lost value.

In order to have enough copper available in the future, higher copper prices would be necessary to stimulate the willingness to invest. Falling ore grades and production interruptions are also disrupting the supply of this important metal. Electric cars contain up to 80 kilograms of copper, which is around twice as much as in a conventional combustion vehicle. Wind turbines also consume large quantities of the metal (two to twelve tons). All of this leads to opportunities for copper stocks. According to the International Energy Agency, steep growth can be expected in renewable energies, photovoltaic systems and electric vehicles. Copper prices could therefore rise sooner than expected, benefiting companies such as Arizona Sonoran and Meridian Mining.

Arizona Sonoran Copper - https://www.commodity-tv.com/ondemand/companies/profil/arizona-sonoran-copper-company-inc/ - is developing the Cactus (copper porphyry resource, 100 percent owned) and Parks/Salyer (100 percent owned) projects in Arizona.

Meridian Mining - https://www.commodity-tv.com/ondemand/companies/profil/meridian-mining-uk-societas/ - has copper, zinc, gold and silver in Brazil. The Cabaçal open-pit mining project has a very good preliminary economic assessment, excellent infrastructure and a clean power supply.

Current company information and press releases from Meridian Mining (- https://www.resource-capital.ch/en/companies/meridian-mining-uk-societas/ -) and Arizona Sonoran Copper Company (- https://www.resource-capital.ch/en/companies/arizona-sonoran-copper-company-inc/ -).

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