Copper Production Struggles Despite Demand Growth We’ve seen copper output take a hit over the past few months as social unrest, weather challenges, and lower grades have plagued the industry despite demand for copper being near all-time highs due to the green energy transition. Numerous companies have already lowered their production output, but that has impacted copper prices with current spot prices being 20% high than they were just 6 months ago.
https://www.mining.com/web/glencore-2022-copper-output-falls-sticks-to-2023-outlook/
With all of this demand and limited supply, it’s an interesting space to be as an exploration-stage copper company. $LBC.V is especially interesting here.
- Recently closed a $2.5M financing round which we should see being used for exploration at Mocoa and Esperanza.
- Mocoa is a Colombian copper and molybdenum project with inferred resource 0.45% CuEq2 (0.33% Cu and 0.038% Mo) containing 2.1 Mt Cu and 232 kt Mo
- Esperanza in Argentina is a copper and gold project in a slightly earlier stage than Mocoa but has had historical drilling results yielding extended deposits of 387m at 0.57% Cu and 0.27g/t Au (from the surface) 232m of 0.74% Cu and 0.33 g/t Au.
With a market cap of just $14M, there’s a lot of potential to look out for here especially considering the strong management team and the relationships they’ve built with the local communities and governments within proximity of their projects.