5 fundamental reasons to add copper to your mining & metals portfolio [Twitter thread unrolled]

Copper pricing has weakened due to expected falling demand.

But in the long term, we need the metal 😎

Here are my 5 favourite reasons to add copper to your portfolio:

1) Rising demand for EVs and decarbonisation fuels the need for metals used in electrification, including:

• lithium
• copper
• nickel
• cobalt
• graphite

I expect significant shortfalls across the board.

But copper has unique challenges.

📊 @thinkcopper

2) Copper is a core component of modern batteries

Copper is the battery's current collector, as the efficient conductor it is.

In an NCA (Nickel-Cobalt-Aluminum Oxide), a popular type of li-ion battery, 17% is copper! Actually, that's more than any other metal.

📊 @cenmag

3) When you look at metal markets globally, copper is currently 3rd

It has doubled since 2016 – yet still has upside for investors.

But big markets may find fast growth challenging.

📊 @Kitco_Metals

4) The discovery rate has plummeted

Less deposits are being found every year, and exploration budgets are still in a rut.

This is worrying.

Identifying new copper deposits is capital-intensive and takes years.

And to make matters worse…

📊 @SPGMarketIntel

5) Copper output in Chile keeps falling

Since Jul 2020, COVID, political shifts and industrial actions have reduced production and caused uncertainty for supply going forward.

📊 @Investingcom

That's it!

Copper has a bright role in #netzero. These ideas can help you allocate capital to copper miners.

1) Electrification!
2) Batteries = copper
3) Market growth is ⁉
4) Discovery rate is low
5) Copper output is falling

Keen to dig deeper?


If this was interesting or useful to you, please retweet the start of the thread.

Follow @paola_rojas for more on metals, markets and tech.

Investing in junior miners and not on our distribution list? Let's fix that! Link in bio.

Originally tweeted by Paola Rojas 🐝 (@paola_rojas) on October 15, 2022.

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