News

Benjamin begins by discussing mine grades, and how average grade is now at 0.5% and is going down by two basis points per year. Because of this decrease, a lot of money is being spent on expansion and copper producers are, in essence, stealing from the future in order to keep the supply of copper up. Benjamin points out that we are currently mining more rock to get less copper and identifies NIMBYism as a major factor when looking at copper supply. The lack of copper discoveries (no major copper discovery in the last seven years) and the often-high political risk are both major aspects affecting copper supply.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer