Why Invest?
Red Rock Mining offers a unique investment opportunity in a key sector of the global energy transition. Demand for copper, a critical metal for renewable energy and green technologies, is experiencing structural growth, supported by clear economic and industrial dynamics.
Strong outlook for 2025 and beyond
• At the Macro Level: A Highly Favorable Context
• The major central banks, after reaching high interest rates in 2023, are pausing their hikes. The Fed could consider monetary easing depending on economic indicators.
• The major economic powers (the United States, Europe, China) are aiming for a "soft landing", limiting the risks of a severe recession and supporting the consumption of raw materials.
• The industrial recovery in China, combined with increased support for strategic sectors, strengthens the outlook for demand for metals such as copper.
• At the micro level: a structural and growing supply deficit.
• COP28 set ambitious targets, including tripling renewable energy capacity by 2030. These technologies rely heavily on copper for electrical infrastructure and equipment. COP29 endorses the commitment of states to a gradual exit from fossil fuels.
• Copper is now one of the priority critical metals for the major powers, due to supply tensions.
• According to BCG, global demand for copper is expected to exceed supply by 20% to 30% by 2030, due to the massive adoption of renewable energy.
• Impact on Prices: Projected Surge Within 2 Years
• The price of copper, stabilized around $8,500/tonne in 2023, is projected by Goldman Sachs at more than $10,000/tonne in 2025 and $15,000/tonne in 2026-2027, highlighting an upward trend fuelled by insufficient supply in the face of growing demand.
Investing in copper exploration and copper concentrate production is now more than ever an extraordinary opportunity.
Why copper?
A metal is deemed critical when any difficulty in its supply could lead to negative industrial or economic consequences.
75.1%
That's how much the price of copper has increased in 5 years.
26,1
Millions de tonnes
That's how much refined copper will be consumed worldwide in 2022.
Why invest in Morocco:
Our hope is that the new National Investment Charter will give a tangible boost to Morocco's attractiveness to private investment, both domestic and foreign.
01
Scarcity of new copper mining operations worldwide.
Few new copper mining operations are emerging due to rising exploration costs and increasingly stringent environmental constraints. Moroccan soil is rich in copper resources that are still underdeveloped and underexploited.
02
A favorable political environment.
Morocco has implemented an ambitious strategy to develop its mining sector, promoting a modern legislative framework, responsible governance, and financial incentives to attract investors. With the Morocco Mines Plan 2021-2030, the country aims to enhance sustainable industrialization and the social impact of the sector while ensuring local and regional economic integration.
03
Strategic position for export.
Located at the gates of Europe and equipped with well-developed transport infrastructure, Morocco is ideally positioned to export copper to international markets. This geographical proximity reduces logistics costs and increases the competitiveness of Moroccan copper on a global scale.
Key factors of Copper Prices and Outlook
Several crucial factors play a role in determining copper prices:
Supply and Demand
Maintaining a delicate balance, the copper price is heavily influenced by the interplay between supply and demand. The incessant growth in copper demand, driven by the previously mentioned factors, is met with a supply that struggles to keep pace.
Anticipation and Investment
With raw materials assuming an increasingly significant position in asset allocations, copper, listed on the London Metal Exchange (LME) through futures contracts with physical metal delivery, witnesses heightened demand and increased valuation resulting from the synergy of these two factors.
Production Impact
Production costs, including extraction, refining, and transportation costs of copper, have an impact on the final price. As these costs increase, it reflects on the price of copper.
Stocks and Reserves
Copper prices can be influenced by the levels of stocks and reserves. With stocks currently at their lowest in 14 years and originating from politically unstable countries, the premium on copper is anticipated to endure in the future.
