A study by Yale University came to the conclusion 20 years ago that copper would be the first of the industrial metals to experience shortages in the long term. Today, this opinion is common sens. Copper is indispensable for renewable energies, electric cars and the decarbonization of societies. Copper prices have benefited little from this, but Ero Copper's share price has.
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Little movement in the copper priceA study by Yale University came to the conclusion 20 years ago that copper would be the first of the industrial metals to experience shortages in the long term. Copper is indispensable for renewable energies, electric cars and the decarbonization of societies. In recent years, many commodity analysts have made the shiny red metal their favorite. However, the development over the past five years is sobering: the price of copper has only just risen from 3 U.S. dollars per pound to 4 U.S. dollars per pound, with heavy fluctuations. The two mining giants BHP Group and Rio Tinto have hardly benefited from this. By contrast, the price of Ero Copper (19.33 US$), a relatively unknown copper producer with its headquarters in Vancouver and mines in Brazil, has risen by 200 percent over the past five years, albeit with equally high volatility. This year alone, it has already risen by 40 percent.
Three mines in Brazil, Growth under its own steam Graphic: Ero Copper currently produces copper and gold at three mines in Brazil. Source: Ero CopperAt 1.6 billion euros, Ero Copper has roughly the same stock market value as the medium-sized precious metals producer Equinox Gold. Compared to the well-known producers of industrial metals, however, Ero Copper is a pipsqueak, but has performed classes better than, for example, Hudbay Minerals, a competitor that plays in the same league. The difference could not be greater: The two market leaders, BHP Group and Rio Tinto, are currently focusing mainly on share buybacks and dividends, but stay away from launching new projects that devour billions and take ten years or more to come into production. ...
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