Argentina for copper & the exciting future. 🇦🇷
With the potential for the stars to align, where do the opportunities lie?
This article is long overdue for an ex-geologist with boots on the ground in Argentina, highly interested in commodities and mining - especially copper.
Most of the world’s copper (60-70%) comes from one type of deposit - porphyry-style.
Guess who doesn't produce a single pound of copper but has front-row seats to it all, with a number of these types of deposits just sitting there idle?
On the other side of the Andes lies Chile, which exports the largest amount of copper globally and shares the same porphryr style geology with Argentina.
So, what is everyone else saying about this primary commodity and the sector fundamentals?
Well, the Telegraph (May 2024) seems to sum it up.
BlackRock recently stated that for new supply to be incentivised, we would need to see copper prices reach at least $12,000/t or approximately $5.50/lb.
We are currently at a copper price of $4.55/lb.
On top of all this, Goldman Sachs raises its price target to $12,000/t ($5.50/lb) at year-end. But be mindful of this one as I’ve heard they were offloading copper assets while pumping the fundamentals previously.
What implications might this have for significant investment decisions in Argentine copper?
Argentina's copper projects are currently completely inactive, and it's reasonable to speculate that if these projects were located in Chile, some would likely be fully operational mines.
In this article, I’ll aim to provide a basic overview of the geological fundamentals behind the world's major copper deposits. Understanding these basics is important for investors in the mining and exploration sector, as these deposits significantly influence company valuation.