Daniel Earle: Copper Prices to Reach Multiples of Previous Highs
Tom welcomes a new guest to the show President and CEO of Solaris Resources, Daniel Earle. Daniel’s background is in mining engineering from the Lassonde Mineral Engineering Program at the University of Toronto. In addition, he has worked in several areas, including banking, commodity forecasting, and financial analysis.
What attracted him to Solaris was the large likely, economically viable deposit. In addition, copper is in the first part of a healthy new price cycle. This cycle’s copper performance could be much bigger than previous cycles. This is due to long-term trends like green energy that continue to intensify.
Past market cycles were dominated by mega mines that could expand to bring on additional supply. However, most of these mines are rapidly running out of resources, and most have declining grades. Numerous new mines will need to be built because the old mines are played out.
Peak copper production should occur around the middle of this decade, and demand is expected to grow. As a result, he expects the gap between supply and demand to widen dramatically by the end of the decade.
China will increasingly dominate the copper market, and today their demand represents half of the world’s copper supply. Moreover, their policies around electrification of everything and reducing emissions will only increase their needs for the metal.
Chile has around 28% of the world’s copper supply, and we see a dramatic shift leftwards in their political system. The predicted next president has a communist background, and this political move has severe risks for projects in this region. Most projects will be likely be shelved or halted by mining companies. Similar political moves toward socialism are occurring in Peru, which produces 10% of global copper.
In contrast, Ecuador has opened up its country to mining and sees considerable economic benefits from that shift.
Daniel discusses their flagship project and credits its discovery to David Lowell. David was at the center of the Solaris story, and two-thirds of worldwide copper discoveries resulted from his porphyry model.
0:00 – Introduction
0:37 – Daniel’s Background
4:03 – Why Solaris & Copper?
7:28 – Supply/Demand Picture
10:20 – Peak Copper When?
11:26 – Copper Cycle Length
14:26 – Copper Substitutes?
16:35 – China Dominance
20:46 – China Metal Reserves
22:30 – Strategic Importance
24:45 – Jurisdiction & Risk
29:27 – Ecuador & Mining
34:36 – ESG & Mining
36:56 – David Lowell
41:04 – Augusta Group
43:17 – Concluding Thoughts
Talking Points From This Episode
- Daniel’s background and experience in the mining sector.
- Copper supply and demand, electrification, and jurisdictional risk.
- Demand and future growth from China for copper and electrification.
- David Lowell’s porphyry theories, copper discoveries, and philanthropy.
Daniel Earle is President & CEO of Solaris Resources and Director of the Augusta Group. He has over 17 years of experience in the mining sector and capital markets, covering projects ranging from early-stage exploration through feasibility and engineering to production. Before joining Solaris in November 2019, he was a Vice President and Director at TD Securities, where he covered the mining sector for over 12 years and established himself as a thought leader in the space. Prior to joining TD Securities in 2007, Mr. Earle was a senior executive with several Canadian and U.S. public mineral exploration and mining companies. Mr. Earle sits on the Board of Directors of Augusta Gold Corp. and is a graduate and scholar of the Lassonde Mineral Engineering Program at the University of Toronto.