Market commentary11 Apr 2019 14:23
Market Commentary
Revitalizing its copper mines may not be sufficient to keep Chile at the fore
Codelco is among the copper miners who are poised to spend billions of dollars on the revitalization of Chile's mines, but that may not be enough to keep the country from losing ground to competitors elsewhere in the world.
Demand for copper is widely expected to take off by the mid-2020s amid a boom in electric vehicle production, but Chile is saddled with mines facing crippling declines in ore grades. Of 300 exploration concessions, just 22 are active. And of the total, big global miners own 89 percent, where juniors own just 4.5 percent, just one-eighth of the global average
The problem has become so severe that Chile's central bank last week cited the issue of declining ore grades as a key reason for slower than anticipated growth in what is normally one of the region's healthiest economies. read more
RCKS Talk
Another High-Grade Core? - SolGold Plc (TSX:SOLG) - SolGold has provided a positive exploration update that points to the potential for a new high-grade zone and expansion of the overall resource, ahead of several larger catalysts that we expect to be positive for the share price. Today’s results reinforce our view that Alpala is a world-class copper-gold deposit and highlights the potential for upside beyond our current estimates. See our full comment here