{"id":57868,"date":"2021-05-15T15:01:38","date_gmt":"2021-05-15T20:01:38","guid":{"rendered":"https:\/\/olduvai.ca\/?p=57868"},"modified":"2021-05-15T15:01:38","modified_gmt":"2021-05-15T20:01:38","slug":"new-bull-chart-for-30000-copper-price-porphyries-nearly-mined-out","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=57868","title":{"rendered":"New bull chart for $30,000 copper price: porphyries nearly mined out"},"content":{"rendered":"
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New bull chart for $30,000 copper price: porphyries nearly mined out<\/a><\/h3>\n
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Bad moon rising over porphyry deposits. Radomiro Tomic, Chile. Image from Codelco.<\/div>\n

Predictions for copper at double or triple today\u2019s level is a fairly recent phenomenon \u2013 and bears still outnumber bulls as to what\u2019s next for the bellwether metal.<\/p>\n

Wall Street natural resource investment house Goehring & Rozencwajg Associates\u00a0confirmed their place in the superbull camp<\/a>\u00a0this week, predicting a copper price north of $30,000:<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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\u201cThe previous copper bull market took place between 2001 and 2011 and saw prices rise seven-fold: from $0.60 to $4.62 per pound. The fundamentals today are even more bullish.<\/p><\/blockquote>\n

\u201cWe would not be surprised to see copper prices again advance a minimum of seven-fold before this bull market is over.\u00a0 Using $1.95 as our starting point, we expect copper prices to potentially peak near $15 per pound by the latter part of this decade.\u201d<\/p><\/blockquote>\n

The rosy demand side for copper has been well documented and Goehring & Rozencwajg focuses on supply, specifically depletion in their latest commentary.<\/p>\n

Depletion, surprisingly, is not discussed that often in the industry and according to the authors is little understood, despite its fundamental importance for long-term supply trends.<\/p>\n

Low and declining grades, uninspiring green and brownfield discoveries (with a few exceptions<\/a>) and thin, slow project pipelines have become rules of thumb in the copper mining industry.<\/p>\n

To those issues, the report adds copper miners\u2019 habit of high-grading (mining your best quality ore first) and growing your reserves with a simple ploy \u2013 lowering cut-off grades when prices rise.<\/p>\n

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Even with prices well above $10,000 a tonne, these paper reserves cannot keep growing, according to\u00a0 Goehring & Rozencwajg, specifically at porphyry deposits which produce 80% of the world\u2019s copper.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

New bull chart for $30,000 copper price: porphyries nearly mined out Bad moon rising over porphyry deposits. Radomiro Tomic, Chile. Image from Codelco. Predictions for copper at double or triple today\u2019s level is a fairly recent phenomenon \u2013 and bears still outnumber bulls as to what\u2019s next for the bellwether metal. Wall Street natural resource […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[2656,13665,1482,17716,2856,1427,11402],"class_list":["post-57868","post","type-post","status-publish","format-standard","hentry","category-economics","tag-copper","tag-frik-els","tag-mining","tag-mining-com","tag-supply","tag-supply-and-demand","tag-supply-shortages"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/57868","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=57868"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/57868\/revisions"}],"predecessor-version":[{"id":57869,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/57868\/revisions\/57869"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=57868"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=57868"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=57868"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}