Osisko Metals CEO talks challenges with net-zero critical metals supply | Summary and Q&A

TL;DR

CEO Robert Reyers discusses the challenges in the copper and zinc markets, including the lack of new discoveries and the disconnect between mining industry realities and decarbonization efforts.

Key Insights

• 🖤 The lack of significant new discoveries and mines in the copper market is a result of the difficulty in finding world-class deposits and the lengthening timelines for permitting.
• 🥺 The supply-demand gap in base metals, especially zinc, is expected to lead to a rebound in prices in the coming years.
• 🤘 Meeting decarbonization targets would require a massive increase in base metals production, but current policies and capital market structures present significant obstacles.

Transcript

thank you hello and welcome to CEO insights I'm Marilyn De Guzman with investing News Network we are at pdac 2023 in Toronto and we are sitting down with the Cisco metal CEO Robert Reyers to talk about these market trends for base Metals hello Robert hello how are you good how are you very good very good good to see you today yep great glad to be h... Read More

Questions & Answers

Q: Why have there been no significant new discoveries or mines in the copper market?

The search for world-class copper deposits has become increasingly challenging, despite significant exploration spending globally. Permitting timelines and resource nationalism are also major factors contributing to the lack of progress.

Q: What is the impact of the shortage of base metals on decarbonization efforts?

Meeting decarbonization targets by 2050 would require a massive increase in global copper, zinc, and nickel production. However, current policies and capital market structures make it unrealistic to achieve these objectives, leading to potential supply shortages.

Q: What are the benefits of investing in zinc projects?

Zinc is crucial for galvanization, which is essential for infrastructure development. With a weak supply side and growing demand, zinc prices are expected to rebound in the next few years, making it an attractive investment opportunity.

Q: What are the challenges faced by explorers in the current mining landscape?

Challenges for explorers include resource nationalism, indigenous and environmental issues, and longer permitting timelines. These factors can hinder exploration programs and discourage investment.

Summary & Key Takeaways

• Robert Reyers introduces his company, Cisco Metal, and highlights their two main projects in Canada: the Point Point zinc mine in Northwest Territories and the Gaspé copper mine in Quebec.

• He discusses the widening gap between supply and demand in the copper market and the lack of significant new discoveries or mines. He attributes this to the difficulty in finding world-class deposits and the increasing timelines and complexities of permitting.

• Reyers emphasizes the challenges faced by developers like Cisco Metal due to volatile market conditions and the lack of incentive prices for copper projects.