Subscribe to Wallace Roundtable on iTunes
While copper has been sizzling the metal is due to fall back to earth in the second half of the year, according to a BMO Capital Markets report.
On Friday editor Neils Christensen, correspondent Paul Harris and mining audiences manager Michael McCrae discussed mining and metal events over the past week on Wallace Roundtable. Special guest was Sean Roosen, executive chair of Osisko Royalties and director at Osisko Mining.
On Thursday copper poked its head above the $10,000 a tonne mark on the London Metal Exchange before falling back, according to a report by Reuters. The last time copper rose above $10,000 was in February 2011, when it touched a record of $10,190.
Elevated copper prices in 2021 have resulted in blow out quarters for the copper miners.
The world’s top copper producer, Codelco, said profits soared to $1.63 billion in the first quarter of 2021. Teck said its profits were 247% higher, thanks to copper. First Quantum, which had been beating off a Chinese suitor a year ago, said revenues were up 42% and Grupo Mexico, the world’s fifth-largest copper miner said on Thursday that its revenues were 40.2% higher.
But watch for prices to start coming down, warns BMO Capital Markets in a study released this week. Policy normalization in China in the second half of this year will see reduce frenzied buying for copper and other commodities.
Goldman Sachs is bullish on copper long term. It had a study out mid-April calling copper the “new oil” due to energy transition. Goldman pegged copper at $15,000 a tonne over the next four years.
The Roundtable panel also discussed the Fed’s announcement, First Cobalt and Global Sea Mineral Resources’ troubled mining robot prototype.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Wallace Precious Metals The author has made every effort to ensure accuracy of information provided; however, neither Wallace Precious Metals nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Wallace Precious Metals and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.