Post by
rockhound3 on Jan 21, 2021 9:53am
Bog ; Tx for this information. As previously noted expected
Copper prices is always a difficult guess!
I say this after reading the annual reports of THE COPPER STUDY GROUP. which comes out with its annual report in October of each year.
I am not sure if the impact of the green energy revolution which is being expected to significantly increase demand has been fully factored in, including the very significant impact of things such as the electrification of India.
However there are a few key things that are important to note;
1. It takes a long time to bring many properties into production. (10 yrs +)
2. Once a plant has been built it will almost certainly operate until the revenue is less than the cash cost to produce.
3. The average grade mined is dropping.
4. Many of the newly found deposits are located in difficult to reach and difficult to mine locations!
5. If there is a large increase in demand prices will jump and could stay high given the length of time it takes to increase production
6. It is easier to project low prices than it does to project high prices.
.I suspect that there is little consistency re price forecasts!
Thoughts?
Rock