CANDENTE COPPER DEVELOPMENT & COPPER DEMANDThe copper market has major structural issues that will not be resolved overnight which will lead to higher copper prices.
-There is a lack of new copper discoveries. The industry is averaging less than 2 new copper discoveries per year. Almost no new copper discoveries have come into production in the past decade and that presents serious supply problems.
-Lack of capital inflow over the past decade has led to underinvestment in the copper sector. Mines currently producing are reaching the end of their useful life and their asset cupboard is dry. Lack of foresight and conviction on the part of mining executives have made their profitable companies vulnerable to supply implosion; not investing in new copper discoveries now could lead to their ultimate failure if they cannot secure and develop more sources of copper supply.
-Copper is essential to electrification. New electric cars, trains, buses, mining equipment and green renewable energy production are copper intensive. Electric vehicles require 2-3 times more copper than their combustion counterparts.
-Almost all major auto makers have committed billions in investment dollars to restructure their factories to produce electric vehicles. These companies are not going to turn back the clock to combustion engines as they see the future is electric. Tesla was the major electric vehicle pioneer and king, but their competitive advantage is being eroded quickly by other vehicle makers who are now electrifying their entire fleets. GM is an example of bringing affordable electric vehicles to the masses by pricing their new Bolt EV at $27k. Vehicle electrification is not going to stop and the more affordable they get the greater the demand.
-Mining intellectual capital is all mined out. Mines contain the raw resources to make clean energy a reality but there are far less geologists and mining engineers to find and develop a feasible mine. Over the past 20 years mining has not been on the radar for new graduates because they have gravitated toward careers in tech but without the raw materials from mines their technology would not be possible. Mines are reaching end of life and we are going to need what limited expertise is out there to discover new ones and build them.
-Waiting for market conditions to be “optimal” is not optimal or wise. To go from discovery to an actual producing mine can take many years, not including the time and investment required to find an actual mineable and feasible discovery. The long discovery-to-mine timeline makes market conditions irrelevant to developing a viable discovery. Mines take time, the key is to start development at any time to ensure future production.
-Copper supply is not responding to copper demand causing a huge supply deficit. Capital needs to flow into the copper market now or the risk of a drastic supply shortage causing massive spikes in the copper price will be inevitable. If producers think it is expensive now to invest wait until the copper price is 50% higher.
-Large companies are moving forward with green and renewable energy plans. Majors like BHP, Suncor, Fortescue, and many more have committed and are now implementing their green energy plans. The talk about green renewable energy is now reality and it will not dissipate. Copper demand is going to grow exponentially fueled by consumer demand.
Candente’s first discovery, Norte, is a stand-alone economically viable copper project, a new PEA has been recently completed and clearly shows it can be developed. A feasibility study will commence soon. Norte has measured and indicated 9.3 billion pounds of copper, 2.1 million oz gold and 59.4 million oz of silver.
Candente’s second discovery, Sur, has only been partially drilled off and permits to continue drilling are in progress. Sur has at least 2.2 billion pounds of copper, 1.2 million oz of gold, 15 million oz of silver and 18.9 million pounds of molybdenum.
Candente’s third target, Verde, has not been drilled but permits to start drilling are in progress.
Discussions are in progress with various parties to determine financing and development options.