TSXV:OCO - Post Discussion
Post by
MrMaKunPeng on Jul 16, 2022 12:41pm
LT vs ST
Just came across this article:
https://www.bloomberg.com/news/articles/2022-07-14/copper-rout-masks-future-supply-crunch-that-imperils-green-goals The world needs Oroco and the resource expansion will be welcomed
Made me wonder about something.
The long term view for copper is clear as pointed out by many here and reconfirmed above. However this can be (is likely) a longer term than the buy-out horizon.
Interest rates rise increases the WACC of miners and with that reduces the Present value of projects/ investments. Recession suppresses the short term price of copper - a double whammy when it comes to evaluating investment proposals.
any thoughts or experience here on how mining companies look at longer term commodity price expectations when valuing projects. At the same with explorations holding off a buy-out to wait for more favorable market conditions?
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