Copper Set to Shine in 2024

Source: Streetwise Reports 01/08/2024

Analysts believe that copper’s value will continue to rise as demand for the metal outpaces supply. Read on to see which companies’ stocks look ready to take on the copper market.

Some recent developments out of South America may shape the way that the copper market develops in 2024. The restriction of supply from major copper producers in Panama, Chile, and Peru may widen the gap between global supply and demand and send copper value skyward, Mineral Wealth reported on December 22, 2023. The report described the current market as a “flashing buy copper sign.”

John Newell of Golden Sky Minerals also reviewed the strategic advantage of investing in copper in the current market in a recent email alert. Newell reported that copper exploration organizations often have high growth potential because of the possibility of mineralization discoveries, increasing market demand as a result of the need for copper in electric infrastructure, and representing an opportunity to diversify financial portfolios. This is all bolstered by the fact that copper, unlike other critical metals, such as cobalt, is often found in relatively stable countries, reducing the risk for investors.

The Financial Times called copper “2023′s top-performing industrial mineral” on account of the metal’s recent price jump. The Financial Times reported that the jump, which raised the price by 2.5%, was caused by a squeeze in supply from South America, exacerbating a market where supply already heavily outstrips demand. In addition to a supply cut, demand for copper to construct green technology has increased by 35% on the Chinese Market, the report stated.

Rick Mills of Ahead of the Herd also believes that copper is getting a boost from expectations that the U.S. Federal Reserve will adjust interest rates again and that the U.S. dollar will lose strength in 2024. However, the report also mentioned the supply-demand problems brought up by other analysts. Mills commented, “Increased demand for copper to a loosening of monetary conditions is one reason to be bullish, but copper bugs like us at AOTH know the real copper price driver is under-supply.”

Abitibi Metals Corp.

Abitibi Metals Corp. (CSE:AMQ) an exploration company based in Quebec, recently announced in a press release on November 23, 2023, that it had an exploration plan for the company’s B26 Polymetallic Copper Deposit, where the company owns 80% of the project. [OWNERSHIP_CHART-10993]

The company’s exploration plan includes 2,750m of drilling to be started in January and aims to outline the property’s open-pit potential. Abitibi reports that the property has an indicated 6.97Mt of 2.94% copper and an inferred 4.41Mt of 2.97% copper.

The company has a number of catalysts to report, according to the country’s corporate presentation, including drilling planned for Q1 of 2024 on the Beschefer Gold Project and the possibility of regenerating the B26 deposit.

Reuters provided a breakdown of the company’s ownership and share structure, where management and insiders own approximately 33.57% of the company. According to Reuters, Director Keith James Deluce owns 25.66% of the company with 21.45 million shares, Director Charles Joseph Deluce owns 4.22% of the company with 3.53 million shares, CPA Jonathon Deluce owns 3.34% of the company with 2.79 million shares, and CFO Quinn Field Dyte owns 0.35% of the company with 0.30 million shares.

Reuters reports no institutional investors.

According to Reuters, there are 83.62 million shares outstanding with 55.55 million free float traded shares, while the company has a market cap of CA$34.63 million and trades in the 52-week period between CA$0.03 and CA$0.61.

Granite Creek Copper Ltd.

Granite Creek Copper Ltd. (GCX:TSX.V; GCXXF:OTCQB) announced in a press release from August 23, 2023, that it had the initial metallurgical results from the Carmacks Copper-Gold-Silver project, which it believes to be indicative of greater copper recovery. [OWNERSHIP_CHART-5253]

According to the company’s PEA, sulfide recovery was 91%, whereas oxide was just 39.8%. The results from the additional met work announced in August show oxide recoveries are now over 80%. Further results of this testwork are pending.

The President and CEO of Granite, Tim Johnson, commented, “The unlocking of additional value through the improved recovery that this testing represents, especially in the early years of mine life, has the potential to add significantly to the NPV of the project. These results could allow for re-evaluation of resources that didn’t make it into the mine plan due to lower grades or assumed recoveries.”

In addition to metallurgy results, Granite Creek has a number of catalysts ahead, according to its investor presentation, and has excellent potential to continue to grow its high-grade resource as it advances toward the Pre-Feasibility and Feasibility stages of development.

Technical Analyst Clive Maund reviewed the company in November of 2023 and stated, “This therefore, looks like a very good point to buy Granite Creek, which has dropped quite sharply this morning to provide us with a better entry point. Volume is quite high on this drop, which is a good sign as it is arriving at a support.”

Reuters provided a breakdown of the company’s ownership and share structure, where management and insiders own approximately 5.74% of the company. According to Reuters, President and CEO Timothy Johnson owns 2.54% of the company with 4.08 million shares, Director Robert Sennott owns 1.87% of the company with 3.01 million shares, Director Michael Victor Rowley owns 1.07% of the company with 1.71 million shares, and Director John Charles Richard Cumming owns 0.26% of the company with 0.42 million shares.

According to Reuters, there are 160.77 million shares outstanding with 151.53 million free float traded shares, while the company has a market cap of CA$4.84 and trades in the 52-week period between CA$0.03 and CA$0.11.

Interra Copper Corp.

On September 8, 2023, Interra Copper Corp. (IMCX:CSE; IMIMF:OTCQB; 3MX:FRA) announced in a press release that it had released the results of its drilling program on the Ha Tres Marias project in Chile. The company reports that it found approximately 350ppm of zinc, 178ppm of lead, 12ppm of Molybdenum, 211ppm of copper, and 6.7 ppm of silver. The drilling covered 1,896m of the property, and the company believes that it may indicate the presence of a distal base metal front on the property’s main copper system. [OWNERSHIP_CHART-10753]

Technical Analyst Clive Maund reviewed the company in February of 2023 as “an Immediate Strong Speculative Buy,” and Maund commented that “it is well-placed to break higher soon, a development made more likely by the bullish look of other copper stocks and copper itself, whose correction within an ongoing trend looks done.”

Reuters provided a breakdown of the company’s ownership and share structure, where management and insiders own approximately 9.11% of the company. According to Reuters, Director Raymond Christopher Buncic owns 2.79% of the company with 0.79 million shares, President and Interim CEO Richard Mark Gittleman owns 1.96% of the company with 0.56 million shares, Director Mike Ciricillo owns 1.90% of the company with 0.54 million shares, Director Christopher Naas owns 0.97% of the company with 0.28 million shares, Director and COO Jason A. Nickel owns 0.47% of the company with 0.13 million shares, Director Mark Daniel Cruise owns 0.44% of the company with 0.13 millions shares, Director Richard Levielle owns 0.44% of the company with 0.13 million shares, CFO Paul H. Robertson owns 0.10% of the company with 0.03 million shares, and Director Thomas E. Gregory owns 0.04% of the company with 0.01 million shares.

Reuters reports no institutional investors.

According to Reuters, there are 28.45 million shares outstanding with 25.86 million free float traded shares, while the company has a market cap of CA$6 million and trades in the 52-week period between CA$0.17 and CA$0.92.

Freeport Resources Inc.

Freeport Resources Inc. (FRI:TSX.V; OTCQB:FEERF; FSE:4XH) announced in a press release on December 11, 2023, that the company has renewed the license for its wholly-owned Yandera Copper Project, one of the world’s largest undeveloped copper projects. [OWNERSHIP_CHART-10010]

Located in PNG, the Yandera license covers 245.5 square km and approx. US$200 million in exploration and development expenditures have been spent since 2005. Work completed includes 154,600 meters of exploration drilling, the vast majority of which has focused on the Yandera Central deposit, as well as scoping studies, engineering studies, environmental studies, and a Pre-Feasibility Study.

Freeport Resources is planning to commence work towards a Definitive Feasibility Study and accelerate discussions with potential strategic partners. The project’s proximity to Asia, the world’s largest copper consumer, positions the Yandera Copper Project as an attractive potential long-term source of copper supply.

Senior Vice-President of Operations, Dr. Nathan Chutas, commented: “We are pleased to have successfully completed the exploration license renewal process and would like to thank the Mining Advisory Council and the Government of PNG for their dedication in advancing large-scale resource projects such as Yandera Copper.”

The company recognizes that production disruptions in major copper-producing regions of Latin America and Africa, along with overall mine supply underperformance in 2023, led to a tighter copper market entering 2024 than originally forecast. Further disruptions or underperformance could quickly drive copper prices higher in 2024 and generate strong investment interest in the geographic diversification of mined copper supply to regions such as PNG.

According to the press release, the company has a few catalysts, including a Definitive Feasibility Study in the works, as well as advancing its strategic partnerships.

Reuters provided a breakdown of the company’s ownership and share structure, where management and insiders own approximately 0.83% of the company. CFO Scott Davis owns 0.57% of the company with 0.90 million shares, President and CEO Gordon Alan James Friesen owns 0.13% of the company with 0.20 million shares, and Director Allan Glowach owns 0.13% of the company with 0.20 million shares.

Reuters reports no institutional investors.

According to Reuters, there are 157.33 million shares outstanding with 156.03 million free float traded shares, while the company has a market cap of CA$2.37 million and trades in the 52-week period between CA$0.02 and CA$0.07.

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Important Disclosures:

1. [Granite Creek Copper Ltd.] is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. In addition, Freeport Resources Inc. and Interra Copper Corp. have a consulting relationship with an affiliate of Streetwise Reports, and pay a monthly consulting fee between US$8,000 and US$20,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Freeport Resources Inc., Interra Copper Corp., and Abitibi Metals Corp.
3. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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( Companies Mentioned: CSE:AMQ, FRI:TSX.V;OTCQB:FEERF;FSE: 4XH , GCX:TSX.V; GCXXF:OTCQB, IMCX:CSE; IMIMF:OTCQB; 3MX:FRA, )

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