- The push for electric vehicles (EVs) and renewable energy infrastructure significantly boosts copper demand.
- Copper prices have risen approximately 6.54% since the beginning of 2024.
- Analysts predict copper prices could reach $11,000 per metric ton by the end of 2024, driven by increased demand and potential supply constraints.
The stock market is facing uncertainty, with turbulent days ahead. Tesla’s recent missed earnings demonstrate how even major players can experience corrections and return to more expected levels. Some experts suggest that the market may be undergoing a shift. While the exchanges might be fluctuating, it could be wise to take a cautious approach and consider safer investments.
However, this doesn’t mean you should only invest in assets with low potential growth. You might consider exploring small-cap but promising companies, as well as mining exploration firms with significant potential. These investments could offer opportunities for growth while still managing risk.
What Commodity Should You Look After?
While gold is here and represents one of the safest commodities in the world, another one is emerging as a top asset. It is not silver, but copper. Why? Copper is essential for the modern world, playing a crucial role in various industries due to its excellent electrical conductivity and thermal properties.
Copper is a critical component in the production of electrical wiring, electronics, and renewable energy systems, including solar panels and wind turbines. As the world transitions to greener energy sources, the demand for copper is expected to soar. The push for electric vehicles (EVs) is another major driver, as each EV requires significantly more copper than a traditional internal combustion engine vehicle. Additionally, the expansion of 5G networks and increasing urbanization are set to further boost copper demand.
Copper has experienced a notable price increase over the past six months, gaining approximately 6.54% since the beginning of 2024. This rise is attributed to growing demand from sectors like electric vehicles (EVs), renewable energy infrastructure, and general electronics, all of which heavily rely on copper due to its superior electrical conductivity and thermal properties.
Looking ahead, the outlook for copper remains optimistic. Analysts predict that copper prices could continue to climb, potentially reaching $11,000 per metric ton by the end of 2024. This anticipated growth is driven by an expected increase in global demand, particularly from green energy initiatives and infrastructure projects. Additionally, potential supply constraints from major copper-producing regions like Chile and Peru could further tighten the market, supporting higher prices.
Introducing World Copper
World Copper Ltd., headquartered in Vancouver, BC, is a Canadian resource company specializing in the exploration and development of significant copper porphyry projects. The company’s primary assets include the Zonia project in Arizona and the Escalones project in Chile.
World Copper also aims to capitalize on these assets by continuing to explore and expand the known mineralization, leveraging its experienced team and strategic positioning in copper-rich regions. The company is also exploring additional opportunities in the U.S., aligning with governmental initiatives recognizing copper as a critical metal, further enhancing its portfolio’s growth potential.
Zonia Copper Project
The Zonia Copper Project, located in Arizona, is a significant venture managed by World Copper Ltd. This project includes a historically productive open-pit copper mine, with a substantial resource estimate that underscores its economic potential. The region’s rich mineral deposits make the site an important focus for further exploration and development efforts.
Recent Developments
World Copper (TSXV:WCU, OTC:WCUFF, FRA:7LY0) recently announced a new discovery within the Zonia Copper Project, highlighting the potential for expanded copper resources. The Mountain States Research & Development (MSRD) provided key data on the site, revealing:
- 14 million tons of historically mined material available for re-processing, split into:
- 7.1 million tons of run-of-mine mineralized material on three historical heap leach pads.
- 7.7 million tons of blasted and leveled in-situ leach (ISL) mineralized material.
For the material on the heap-leach pads:
- The original copper grade before leaching was estimated between 0.4% and 0.6% CuT.
- This material yielded 30.5 million pounds of copper during operations from March 1966 to March 1975.
- An estimated 26.7 to 55.1 million pounds of copper may remain unrecovered.
For the ISL area:
- The original copper grades were estimated between 0.269% and 0.292% CuT.
- This area produced 2.70 million pounds of copper between mid-1972 and March 1975.
- It is estimated that 38.6 to 41.8 million pounds of copper may remain.
The total potential unrecovered copper from both the heap leach pads and the ISL area is estimated to be between 65 million to 96 million pounds. Based on these findings, World Copper’s Technical Advisory Committee is considering re-processing the material to recover the remaining copper.
Escalones Copper Project
The Escalones Copper Project, managed by World Copper Ltd., is situated in Chile, approximately 35 kilometers east of El Teniente, one of the world’s largest underground copper mines. The project is a high-potential copper-gold porphyry system, encompassing a large area with significant mineralization. It has been a key focus for World Copper Ltd. due to its extensive resource potential and strategic location within a well-known mining district.
Key Details of the Escalones Project
- Location: 35 km east of El Teniente, Chile.
- Project Type: Copper-gold porphyry system.
Key Resource Estimates and Potential:
- Measured & Indicated Resources:
- 426 million tonnes at 0.367% CuT (Total Copper).
- This includes 3.45 billion pounds of copper.
- Inferred Resources:
- 178 million tonnes at 0.356% CuT.
- This includes an additional 1.4 billion pounds of copper.
- High-grade Core:
- Contains 104 million tonnes at 0.79% CuT, indicating a rich copper deposit within the larger resource area.
The project’s strategic development plan involves further exploration and resource expansion, with a focus on defining high-grade zones and enhancing the overall resource base. The Escalones Project represents a significant asset for World Copper Ltd., providing potential for long-term copper production.
Conclusion
Copper’s essential role in modern technologies, particularly in the shift towards renewable energy and electric vehicles, makes it a critical commodity. The rising demand, coupled with potential supply constraints, suggests a strong market outlook for copper. Companies like World Copper (TSXV:WCU, OTC:WCUFF, FRA:7LY0) are well-positioned to capitalize on this growing demand, with significant projects like Zonia and Escalones poised for development and expansion.
Marc has been involved in the Stock Market Media Industry for the last +5 years. After obtaining a college degree in engineering in France, he moved to Canada, where he created Money,eh?, a personal finance website. He then contributed to building Guerilla Capital, a Capital Markets company and FirstPhase Capital where he was head of research. At10xAlerts, he writes articles and conducts interviews on many sectors, including breaking news technology, metals & mining markets.
