Gianni Kovacevic: Copper Demand Growing Exponentially this Decade
Tom welcomes Gianni Kovacevic back to the show. Gianni discusses the copper mining business in depth. Copper has reached $4.00, and he anticipates that much higher prices will be necessary to encourage development. This bull market may become larger than the last China Supercycle, and he points out that many investors missed out on that cycle by selling too early.
The March 2020 crash briefly reduced demand, but it also caused many mines to shut down, constraining supply. Many copper-related industries are adding to their stockpiles because they forecast an improving market. Very little copper is stored as reserves, unlike other commodities like oil. Major copper producers and manufacturers of electrical products will see remarkable growth.
He explains the two different types of copper mining and the amounts of global production. Copper supply will be constrained for several key reasons, including declining grades. He says, “We’re past the low-hanging fruit phase of copper mining; everything is more difficult from here.”
He believes the major producers are now going to have to pay to find the resources. The number one jurisdiction in North America is Arizona and Nevada. However, it takes nearly twenty years from initial drilling to completion of a copper mine. Therefore the large producers will have to go after juniors with good properties with proven reserves.
He discusses CopperBank Resources and why they offer diverse exposure to the copper trend. He explains the grades and overhead involved in the copper mining industry. Financiers are going to want better margins before they approve new projects.
We’re close to the all-time high for copper, and once through it, we may see a mania phase. Copper is a massive opportunity for retail investors as an M&A phase can’t be that far off.
He discusses the rare earth markets, including scandium. Some of these rare earth metals are expecting growth by several multiples in the coming years. Lastly, he discusses the helium market, its uses, and how Desert Mountain discovered a high-grade helium deposit in Arizona.
He says, “If you’re not following the commodity markets closely, your likely going to miss out on some opportunities.”
Time Stamp References:
0:00 – Introduction
1:00 – Sentiment & Copper
4:22 – Supply & Demand
7:40 – Stockpile Estimates
9:55 – Recycling & Supply
16:07 – Finding More Supply
22:16 – Price vs. Development
30:00 – Technology Advances
33:06 – Copper Alternatives
38:29 – Helium Uses
41:17 – Follow These Markets
43:02 – Wrap Up
Talking Points From This Episode
- The global copper supply/demand picture.
- Expectations for this bull market in copper.
- Rare earth metals and expected market growth.
- Helium supply, deposits, and uses in technology.
Guest Links:
Website: https://www.copperbankcorp.com/
Website: https://desertmountaineneergy.com/helium
Website: http://kovacevic.com
Twitter: https://twitter.com/GianniKov
Amazon Book: https://tinyurl.com/yyynu9v9
Gianni Kovacevic is CEO & Director of CopperBank Resources Corp and a renowned expert on incumbent energy systems. He is a sought-after strategist in the divestment movement and has invested over 20,000 hours of research into analyzing the natural resource sector. His specific expertise on copper markets has brought him to lecture at institutions and think-tanks around the world. An avid proponent of realistic environmentalism, he is frequently interviewed by the media. His recent book, “My Electrician Drives a Porsche?” was published in 2016 and is available in multiple languages at booksellers everywhere. Mr. Kovacevic is a graduate of electrical studies from The British Columbia Institute of Technology and fluent in English, German, Italian and Croatian. He is a founding member of the CO2 Master Solutions Partnership and a co-founder of CopperBank.