Copper3 Feb 2021 12:15
When deciding about whether to hold Ggp shares just think about countries long term commitment plans on global warming.
There are 13 countries at the moment with plans to phase out petrol engines by 2040 and this is going to have to come sooner as the crisis worsens.
One of the key factors is electric vehicles.
There is approx 0.1 ton of copper in an EV.
China wants to convert all it's fleet to Ev by 2030, that's 250m cars so that's 25,000,000 tons of copper.
2.5m would come from recycling old cars, so that's 22,500,000 tons of copper needed just for their cars.
The USA has about the same numbers.
The discovery of new mines of any size has been falling since 2000 and getting deeper.
22.5m is around 10 Havieron's copper resources just for China's cars.
Looking at the Copper Alliance web site they are saying the supply is adequate but they've added in undersea reserves and the resources already in use and no allowance for other uses like charging points, buildings, solar and wind power.
An electric car needs 183lbs of copper and a bus needs 830lbs.
The demand in the next few years is going to rise dramatically until hydrogen technology gets more economical.
Hydrogen cars have a platinum catalyst and research is on going to eliminate PGMs from these by using a polymer catalyst containing cobalt.
Cobalt is a supply problem until it can be eliminated from batteries which could be 10 years away. It's prices are $43,000 per ton now but forecast to go over $100,000 in the near future.
Ggp have copper and cobalt at Havieron, bulk mining is due to start in 2-3 years time, just as metal prices will surge.
Will I be selling in the near future, well unless something unforeseen happens it doesn't look likely.
There's only one Havieron!
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