Seamless Permitting Process Key to Addressing Copper Supply Deficit | Summary and Q&A

TL;DR

The copper market is projected to experience a supply surplus in 2024, but a global deficit is anticipated by mid-2025. Copper prices are expected to increase, resulting in both opportunities and challenges for the industry.

Key Insights

• ☄️ The copper market is expected to experience both a supply surplus and an increase in demand in the coming years.
• 📽️ Projected deficits in copper supply may arise due to mine closures and project delays caused by permitting and jurisdictional risks.
• 😮 Rising copper prices can incentivize investment and expedite the development of new projects, but they may also lead to resource nationalism and jurisdictional challenges.
• 🇺🇸 Canada offers a favorable investment environment for copper projects with clear permitting processes and lower litigation risks compared to the United States.

Transcript

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Questions & Answers

Q: What are the projections for the copper market in terms of supply and demand?

The International Copper Study Group predicts a significant supply surplus in 2024, while S&P Global forecasts a 20% increase in demand by 2035. However, Asisco Metals' CEO believes a global deficit will emerge by mid-2025 due to recent mine closures.

Q: What factors contribute to the challenges of copper mine development?

Permitting processes, jurisdictional risks, and resource nationalism can hinder the development of copper mines. Legal issues and litigation can delay projects for years, as seen in examples like the Rosemont copper and Pebble projects in the United States.

Q: What are the advantages of investing in copper projects in Canada?

Canada provides a clear pathway to permitting with an average four to five-year process. The country's mining code is considered attractive, as it has not been affected by the same level of litigation seen in the United States.

Q: How do Asisco Metals' projects in Canada contribute to the copper market?

Asisco Metals is working on two brownfield projects in Canada, the Gaspé Copper Project and Pine Point. These projects are at the resource definition stage and progressing towards feasibility and permitting. They offer opportunities for investors bullish on copper and looking for assets in safe jurisdictions.

Summary & Key Takeaways

• The International Copper Study Group predicts a major supply surplus for copper in 2024, while S&P Global forecasts a 20% increase in demand by 2035.

• Asisco Metals' CEO, Robert, believes the market will remain relatively balanced in 2024 but anticipates a global deficit by mid-2025 due to the recent closure of Cobra Panama.

• Feasibility does not guarantee production, as permitting and jurisdictional risks can hinder project development. Copper prices may increase and attract more investment, but resource nationalism and jurisdictional risks could also rise.