George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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PART 1
Last week saw the latest instalment of the Henry v Copper saga when the BHP boss used his time at the Bank of America metals conference in Spain to remind everyone that a copper shortage and price boom is coming.
He estimates that US$250 billion needs to be invested in copper mines to meet end of the decade global decarbonising targets, whereas the currently committed projects amount to a spend of up to $50 million.
Ultimately, higher prices will induce further investment and more supply. But this takes time, Henry said.
Indeed, it does take time, as Lord Keynes famously said last century. Markets can remain irrational longer than you can remain solvent.
In the days after Henry’s speech in Barcelona the copper price edged down by two cents, from $3.74 a pound to $3.72/lb, which is irrelevant when discussing the long-term outlook but sobering for copper bulls who subscribe to the theory of huge demand and sluggish supply growth.
What went wrong for copper last week was a fresh blast of the chilly wind blowing off the Chinese economy which is not performing as promised, dragging copper down to a five-month low.
The Wall Street Journal newspaper best summed up the problem with copper in a weekend headline: China’s wavering recovery reverses copper rally, a story which reported that there negativity coming from all sides for copper.
Also on the side of the downbeat copper market is a man whose company is a big and growing consumer of copper, Elon Musk, the Tesla boss.
While not predicting a slump in the copper price, Musk said that all future Teslas would operate on a 48-volt electrical system, superseding the existing 12v system common to most vehicles, with 48v using much less copper compared 12v.
The first approximation means we need only about a quarter as much copper in the car as would be needed for a 12v battery, to that’s a big deal because people often worry about whether there is enough copper Musk said, before adding, there is (enough copper).
The difference between Musk’s view of copper and that of Henry is largely one of timing with Musk talking about immediate changes on the Tesla production line and Henry talking about long-term copper demand in a decarbonising and increasingly electrifying world.
But a deeper dig into the copper market reveals that there is unlikely to be a rapid recovery in price as the fundamentals of supply and demand drift further apart, piling pressure onto the price.
Morgan Stanley, an investment bank, weighed into the copper debate just before Henry spoke in Spain with a warning that weakness abounds.
After a few range-bound weeks, copper broke below its 200-day moving average and reached the lowest level since late November, Morgan Stanley said.
Nice to see a weighty one published during market hours.
A more bullish message perhaps?
Good luck Bubble, many of us are between a rock & a hard place on this, very hard to know what to do.
Good luck Cookie
Anyone have full access to this article
https://www.mining-journal.com/miner-s-right/opinion/1453228/mike-henry-frustrated-copper-bull
Good luck Bubble. Thanks for your input over the years. Hope to see you back soon.
Regards
Pad
Cusn and shg fortissimo,good luck here ,will keep an eye on it see how you get on gl.
18p appeared on the bid at the very start, I will not be surprised to see that at the end of today trading.....hopefully.
Take care my Friend
Pinot xx
:0)
IW not commenting on the changes. 156% would have been a kill for him. GL buble
All the best Bubble....there are no 'risk-free' bets or investments in the markets but there are some boring dividend low profit stocks out there that are safer than SOLG. Just don't plough all your dosh into fragile or volatile stocks like HARL and others.
You might be better just sitting things out for a year and wait for inflation woes to pass.
Never like to see investors (long term) depart near the end game only then to repeat poor choices on other stocks.
Maybe avoid 'growth stocks' entirely and then you'll it less stressful.
Farewell. ATB.
See ya bubble … good luck
Good for you Bubble, you will sleep better and well done for your profit.
SharketMare thanks for advice but am out now might consider getting back in when political tensions and what's happening with mining in general gets decided
Bubble, 156% profit wow. What are you going to do with your $156. Spend it wisely.
You may still have a chance to re enter at a lower price Bubble...
Bubble, if it isn't too late I implore you to consider holding a few of these to see how it plays out, you might be kicking yourself in a few months' time otherwise!
Well after 13yrs invested am all out now myself everyone ,the risks outweigh the rewards am afraid too much for me I leave with 156% profit on my original investment ,good luck all that still hold and believe
I have no doubt about copper demand over the next ten years or that SOLG is sat on some interesting land in Ecuador. My money has shifted to EEE however while I cut my stake here as the S American politics just a bit too volatile right now. After the elections, once "El Presidente" issue is sorted out etc then fine but for now Oz looks a safer place to invest money.
Can't see anything regarding a placing they just stated fully funded until June 2024
Wildtiger - may be worth thinking about a rename to
Tigerwithpiles
One thing that isn't coming here is a placing so you've just shown yourself up.
Enjoy your profits.
Sold all my shares at 17p, thank you buyers. Placing is my main concern here, good luck to all
@ addicknt, let's hope that soon we will be able to comment on more interesting things than that!
It's interesting that covgaz completely misunderstood what Aquinaga said and yet two people have recommended his post.
Think a lot of things will be news to you….
Who said it had? Know body on this thread.
Come on Covgaz, happy Monday to you.
Where do you see the cognitive dissonance?
No one suggested we are mining, that was jut in your head, we just commented on the fact that innovation around technologies that use copper heavily is good overall for general copper demand because it make its use more ubiquitous. We as "JUNIOR MINING EXPLORERS" (see my post from yesterday at 19:38) might eventually benefit from it. However we will still need a buyer to take us out of our current misery!
Are you ok now?