Why Invest?
Explore the exceptional investment opportunities presented by Red Rock Mining in a booming sector driven by the energy transition. Seize attractive returns in this dynamic and rapidly growing industry.
Exceptional Outlook for 2024
• At the Macro Level: A Highly Favorable Context
• Major central banks have concluded their interest rate hikes; the market is already anticipating a rate cut by the Federal Reserve this year, and the People's Bank of China is also expected to ease its financing conditions.
• Major economic powers are all experiencing a 'soft landing';"
• A decline in the dollar.
• At the micro level: a structural and growing supply deficit.
• The COP28 has adopted a plan to triple renewable energy capacities by 2030.
• The major economic powers have ranked copper in the top 3 of the list of critical metals in terms of supply.
• As of this year, the supply of copper concentrate to the smelter producing copper cathodes will experience limitations due to its inelastic nature.
• Impact on Prices: Projected Surge Within 2 Years
• After a year of stability near $8,500, Goldman Sachs expects a climb to $10,000 in 2024 .
• Expected to reach $15,000 per tonne by 2025.
Investing in copper exploration and copper concentrate production is now more than ever an extraordinary opportunity.
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.
