A lesser-mentioned reason high CU prices are good for OCEveryone by now knows that higher CU prices = higher NPV for Santo Thomas = higher buyout for Oroco. But most people are missing just how good high CU prices NOW are for the company, which realistically is still 12-18 months from a buyout.
Have a read through Freeport's Q1 earning report
https://s22.q4cdn.com/529358580/files/doc_presentations/2021/FCX_1Q21_CC.pdf
Specifically slide 18 - EBITDA and Cash Flow at Various Copper Prices. At $4.50 copper (average for the year 2021, which is looking very likely if CU prices hold) they estimate yearly CASH FLOWS of 10 - 11 billion. For comparison, their cash flow estimate for $3 CU was about 4 billion from their Q1 report last year. That's an extra 6-7 BILLION dollars in ONE year just from a rise in the copper price.
So, the question then is: What would a company like Freeport do with these extra billions? It certainly makes a 2-3 billion dollar expense on a generational asset like Santo Thomas seem much more affordable. Now consider that every major copper producer in the world is going to have the next 12-18 months to accumulate cash while Oroco proceeds to bring Santo Thomas ever closer to the feasability stage.