Sprott picks mergers in copper sector

One of the world’s most knowledgeable metals experts is tipping increasing investment in copper and more mergers and acquisitions in the sector.

In a special report titled Copper: Wired for the Future, metals investor Sprott says a pending copper shortfall will drive new investment.

‘’Copper’s strategic importance has driven significant M&A (merger and acquisition) activity in 2022-2023, with major mining companies like BHP and Rio Tinto acquiring copper miners at substantial premiums,’’ the report says.

‘’Investments in copper miners may likely rise, given the supply-demand dynamics and the potential for copper equities to outperform the underlying spot price.’’

The copper market was valued at US$183 billion in 2022 and the game changer is clean energy, with 25% of global copper demand going on energy projects (wind farms, solar farms, EVs and the like), which is expected to rise to 60% by 2040.

Meanwhile, capital for copper exploration and development has dived from US$26 billion in 2013 to just $US14 billion in 2022.

‘’The anticipated supply-demand dynamic may suggest a strong performance for copper in a bull market.’’

The full report can be found here.

These views were shared by another recent piece in mining.com, which said: ‘’Of all metals, copper has the most scope for gains.’’

Full article here.


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