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Solaris Resources Inc T.SLS

Alternate Symbol(s):  SLSR

Solaris Resources Inc. is a Canada-based multi-asset exploration company that is engaged in advancing a portfolio of copper and gold assets in the Americas. Its Warintza property is a porphyry copper-molybdenum-gold project located in southeastern Ecuador in the province of Morona Santiago. It includes nine metallic mineral concessions covering 26,777 hectares (ha). The Ricardo property is an exploration porphyry copper prospect located near Calama, Chile in the Calama Mining District. Its claim block covers approximately 16,000 ha. The Tamarugo property is a grass-roots copper porphyry target located in northern Chile approximately 85 kilometers northeast of Copiapo. Its claim blocks cover a total of approximately 12,300 ha. The Capricho project is a 4,200-ha copper-molybdenum-gold property. The Paco Orco project is a 4,400-ha lead, zinc and silver property. The La Verde property is situated in the Sierra Madre del Sur west of Mexico City, including the Unificacion Santa Maria claim.


TSX:SLS - Post by User

Post by Zipolitemexicoon Nov 23, 2024 10:44am
147 Views
Post# 36327365

Copper Supply-Demand Dynamics

Copper Supply-Demand Dynamics
Declining Rate of Major Copper Discoveries

Recent S&P Global Commodity Insights data paints a sobering picture of copper exploration and discovery trends. Despite a 12% increase in exploration budgets in 2023, the industry has seen only four major discoveries in the past five years (2019-2023), totaling a mere 4.2 million metric tons (MMt) of copper. This marks a significant downturn in the frequency and size of major discoveries compared to previous decades.

Supply-Demand Dynamics & Market Outlook

The copper market is heading towards a significant supply-demand imbalance:
- A refined copper deficit is projected to begin in 2027
- The concentrate market is currently in deficit and expected to remain so for the next five years
- Mine supply is forecast to peak in 2029
- A potential concentrate deficit of 2.2 MMt is expected by 2032

Average time from discovery to production has increased from 12.7 years (for mines starting in 2005-2009) to 17.9 years (for mines starting in 2020-2023)
  - Longer exploration, permitting, and study phases contribute to these delays


Investment Implications
The current state of the copper market presents several implications for investors:
 
1. Potential for Price Appreciation: The looming supply deficit, coupled with increasing demand (particularly from green technologies), suggests potential for sustained higher copper prices in the medium to long term.
 
2. Value in Exploration Companies: With the scarcity of new major discoveries, companies successfully identifying new large-scale deposits could see significant value appreciation.

 

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