Welcome back, great to have your company on Kalkine TV. I'm Holly and you are watching THE
BUZZING TRENDS – a specially curated show that brings to you emerging trends driving the market momentum and
the related stocks under the spotlight. And stay with us for today’s stock fact of the
day!
To give you a highlight of what we’re going to touch on today- In the first segment of
the show, we will look at the factors driving the copper prices. After that, we’ll be
zooming our lens on 5 ASX hot copper stocks. Then in the last segment, we will
look at where the copper prices are heading in the near term.
So, without further ado, lets get started with our first segment of the show and look
at how copper prices are panning out amid shifting demand-supply dynamics.
Copper prices touched a six-week high on Monday, which you might be surprised to
learn is linked to a natural disaster. The prices surpassed US$4.6 per pound on the
COMEX market, which for your info, is the primary futures and options market for
trading metals such as gold, silver, copper, and aluminum. Well, the copper price rise
was triggered by an anticipated increase in demand due to floods in China amid declining
inventories. There have been floods in many key locations in China including Zhengzhou
in the Henan province, which is an industrial and transport hub. The floods have reportedly
caused more than US$10 billion in damage. Needless to say, a tragedy for the residents
of the province.
The initial uptick in copper prices on strong demand outlook and supply constraints
following the floods was seen to be driving gains in the copper. However, rebounding
US dollar snapped copper prices’ five-day winning streak on Tuesday, outweighing supply concerns
from floods in central China. The dollar eased early on Tuesday just below recent peaks,
but the currency rebounded later in the session as investors turned their focus to this week’s
Federal Reserve meeting.
On that note, lets move on to our second segment of the show, and have a look at buzzing
stocks with copper exposure against the overall copper price dynamics:
First on the list is junior explorer Caravel Minerals.
The Copper exploration and development company is advancing a large-scale copper resource
in a world-class jurisdiction.
Caravel has received high-grade mineralisation results for six recently completed diamond
core drill holes at the Bindi Copper deposit, part of its flagship Caravel copper project
located in Western Australia's Wheatbelt region.
And on charts, we can see shares have delivered a return of over 70 per cent this year,
as on 27 July 2021.
And for another, Headquartered in Brisbane, Aeris Resources operates two wholly owned projects. Tritton copper
operations is located in New South Wales and Cracow gold operations is located in Queensland. The diversified mining
and exploration company intends to become a mid-tier mining company with a focus on
gold and base metals.
The company has achieved production and All-In Sustaining Cost guidance for the financial
year 2021 at its Cracow and Tritton operations. Now coming back to financials, All-In Sustaining
Cost also commonly known as AISC is an advanced metrics used by mining companies to report
their mining cost. It is an extension of currently existing “cash cost” metrics and includes
sustainable production costs too.
On the stock performance front, Aeris Resources shares have delivered a return of over 90 per cent
this year as on 27 July.
Next up is Chalice Mining - an ASX-listed multi-commodity producer engaged in the
exploration and production of nickel, copper, cobalt, gold, and platinum group metals at
its Julimar project in Western Australia.
Last month, the company identified several extensive nickel-copper soil anomalies at
the highly prospective Julimar Complex.
Looking at the stock charts we can evaluate Chalice Mining shares have delivered a return of over 60
per cent this year as on 27 July.
Now for our stock fact of the day. Usurpingly, this one is about copper. The metal has many
benefits, one of which helps to prevent the spread of COVID-19. Can you guess what it
is? The answer to that and more after the break. So stay
with us!
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Hi welcome back, I am Holly and you are watching
The Buzzing Trends- Today we’re looking at ASX listed copper stocks grabbing
the headlines.
Before the break though, we touch
Moving on, let us zoom our lens on Eagle Mountain Mining - an ASX-listed copper and
gold-focused exploration and development company. It is engaged in the development of the Oracle Ridge
Copper mine which is located in the state of Arizona in the USA.
In its latest update, the company announced the arrival of a third diamond drill rig at
its Oracle Ridge project, as part of the accelerated exploration program. The campaign is aimed
at increasing the existing JORC mineral resource, drill testing prospective new targets in the
vicinity of the mine and establishing resources in the measured category.
JORC stands for the Australasian Joint Ore Reserves Committee, which is sponsored by
the Australian mining industry and its professional organizations. It sets minimum standards
for Public Reporting of minerals Exploration Results, Mineral Resources and Ore Reserves. And
by measured mineral resource, we mean The part of a Mineral Resource for which tonnage,
densities, shape, physical characteristics, grade and mineral content can be estimated
with a high level of confidence.
Looking at the charts, we can see Eagle Mountain shares have delivered a return
of close to 60 per cent this year, as on 27 July 2021.
And last on our radar today is Copper Mountain Mining Corporation - an Australia-based
company with flagship projects located in word-class mining jurisdictions. The company
holds various copper projects in Australia and British Columbia.
It produced 29.6 million pounds of copper equivalent in June 2021 quarter, with a C1
cash cost of US$1.38 per pound. The company has increased its copper production guidance
range to 90-100 million pounds for 2021.
Net Direct Cash Cost or C1 represents the cash cost incurred at each processing
stage, from mining through to recoverable metal delivered to market, less net by-product
credits.
On stock performance front, Copper Mountain Mining shares have delivered a return of close
to 120 per cent this year as on 27 July. Mountainous returns indeed.
Well that’s all about for the copper stocks today. Let us now jump over to our last segment
where we touch on the general consensus regarding the outlook of copper prices.
According to market analysts, Copper is extensively used in the green energy industry
including renewables, energy storage and electric vehicles. The demand for this metal is expected
to continue to increase.
While higher demand in the infrastructure sector, and electrification of vehicles is
a plus point for the copper prices in the near term, Copper inventories in the London
Metals Exchange registered warehouses need to be carefully evaluated.
Going forward, the growth trajectory of miners appears to depend on global economic recovery
and containment of COVID-19 spread, which are essential to retain or revive the momentum
in commodity prices.
And with that, it’s time to wrap up the show. But stay tuned as we have another Buzzing
Trends show later on at around 3:30 pm today, when I’ll be bringing you more
interesting market trends.