Mickey Fulp: “I’m a Short-term Bear in the Copper Market”

TL;DR

The copper market may face a pending shortage due to increased global demand and a lack of new developments, while the zinc market is expected to prosper in the short to mid-term due to a supply deficit reduction.

Transcript

so I'm Melissa Shah the investing news network and here today with me is Miki fault the mercenary geologist and thanks for joining hey thanks for Evelyn Melissa so your talks in tomorrow is called the contrarians all on copper and then your newsletter you write and have a bullish view on copper in the mid to long term and can you explain why you th... Read More

Key Insights

• 🌚 The copper market faces a pending shortage due to increased global demand and a lack of new developments.
• 🍉 Trump's infrastructure build-out can have a significant impact on the short-term trajectory of copper prices.
• 🇨🇳 China's influence on the copper market as a consumer and limited producer remains a wildcard.
• 🖖 The zinc market is expected to prosper in the short to mid-term due to a supply deficit reduction.
• 🇮🇪 Hannon Metals, a zinc exploration company, offers an attractive investment opportunity with significant potential in Ireland.
• 🥺 The zinc market's short to mid-term prospects have led to a change in the author's view and investment focus.
• 💄 The attractive price of the London mining Killbrick project acquired by Hannon Metals makes it an exciting investment opportunity.

Questions & Answers

Q: What factors contribute to the pending shortage in the copper market?

The growing global population and a continual increase in copper usage are key factors contributing to the pending shortage in the copper market. In recent years, new developments in copper production have been exhausted, leading to concerns about future copper supply.

Q: How can factors such as Trump's infrastructure build-out impact the copper market?

Trump's infrastructure build-out can have both positive and negative effects on the copper market. If the build-out does not come to pass, it would have a negative impact on all industrial metals, including copper. However, if the infrastructure plans are implemented, it could provide a boost to copper demand and prices.

Q: What role does China play in the copper market?

China is a significant player in the copper market, consuming about 40% of the world's copper but not producing enough to meet its demand. Chinese actions, such as stockpiling or dumping copper on the markets, can greatly influence copper prices and market dynamics.

Q: What is the potential for investing in zinc in the short to mid-term?

The zinc market is expected to prosper in the short to mid-term due to a constant concentrate supply deficit reduction. With last year's reduction of 6% in zinc concentrate supply, companies focusing on zinc are expected to do well in the coming years.

Q: Can you recommend a zinc exploration company with potential?

Hannon Metals, a new zinc company, has acquired the London mining Killbrick project in Ireland. With an upcoming resource estimate and significant exploration potential, Hannon Metals offers an exciting opportunity for investors.

Summary & Key Takeaways

• The copper market is expected to face a pending shortage due to a growing global population and increasing copper usage, with questions arising about future copper production.

• Factors such as Trump's infrastructure build-out and the Chinese market's influence on copper prices can impact the short-term trajectory of copper.

• The zinc market is projected to prosper in the short to mid-term due to a constant concentrate supply deficit reduction, making it an attractive investment opportunity.