All Roads Lead to RomeOr should I say, all roads below lead to Casino:
1) Covid-19 has forced 3rd world countries turn to their natural resources for much needed cash to jump start their economy...using taxes, strikes, road blockade and nationalization etc...subsequently increase production costs and country risks for miners.
2) Increase corruption/bribery especially during pandenmic period, in many cases involving deals made over and under the table...thus litigation and liability risks forcing majors turn to safer jurisdictions.
3) Lack of feasible mining projects as results of under investment for the past 10-15 years and tougher ESG requirement. High grade low hanging fruits are hard to find, moreover existing mines are aging and grades are declining.
4) Global warning and related extreme weather have turned the tide to green energy and decarbonization, demand for EV, solar and wind are on an uptrend. Copper demand/supply, shortages, low inventory levels, I suspect will make frequent headlines in the coming years.
5) Many countries have been buying more gold as safety hedging assets since the pandenmic started 3 yrs ago, hitting high of over US$2000 in Aug 2020, price averaged out around 1800s in last 2 years. Casino has both copper and gold.
6) Strategic partner RIO, one of the biggest global miners has done their DD for the past 26 months, and in the process of completing their asset confirmation. RIO has the inside track to Rome, admission price US$10 is the group consensusHowever other bidders are welcome.
What is your ask?
GLTA