From Northern Dynasty-
Significantly higher copper prices predicted by major banks
Northern Dynasty is heartened by the growing calls for increasing copper production from leaders in the industry. Goldman Sachs recently increased the Bank's forecast for copper to US$12,000/mt (approx. US$5.40/lb), seeing 20%+ upside this year, as the metal is forecast to reach all-time highs over the coming 12 months. Bank of America expects copper to reach US$20,000/mt by 2025 due to an expected supply/demand imbalance1.
"We echo recent comments from Goldman Sachs, Bank of America and BlackRock that higher prices in the near term are the likely outcome of the looming supply deficit for copper at a time of growing demand. The reality is that without copper you cannot create electricity, transport it, or convert the electric energy into usable kinetic energy in end-use applications. The amount of copper required to enable a successful global energy transition to a zero-carbon economy is enormous, and the only realistic way to meet this demand is to increase production," said Thiessen.
"It appears to me that the loudest voices expressing concerns about the impacts of climate change and the desperate need for action are also the loudest voices opposing any mining whatsoever in the United States. That isn't just incomprehensible, it is impossible. The fact is that about 80% of all copper ever produced is still in use, so the suggestion that we can simply obtain 100% of new supply needed, effectively as much copper that has ever been produced, from recycling 20% of historic production is a physical and mathematical fantasy," Thiessen added.
Where will the needed copper come from?
"The world's largest exporter of copper, Chile, has elected a new president who has vowed to curtail mining. Russia is a large exporter of copper. China has invested heavily in new copper projects in Africa. Does relying on these countries to ensure the important global energy transition sound like a recipe for success?" Thiessen added. "The U.S. has significant copper resources within its borders, all it needs to do is develop them."
