sport football: “There’s no easy mining left—not in Chile nor the rest of the world.”

Senin, 05 Juni 2023

“There’s no easy mining left—not in Chile nor the rest of the world.”

Hi ,

If I had to ch oose one metal to own it would be copper. It's essential to nearly everyt hing, but more importantly we're running out…

There are tw o trends driving copper demand:

The en ergy revolution (AKA the electrification of energy)
The ur banization of underdeveloped countries (primarily Asia and Africa)

To meet demand we're going to need to mine more copper over the next 27 years then we've mined in ALL of human history to date.

That would be a challenging task even IF we had the copper reserves… the problem is, we don't.

Copper production is falling at the world's biggest mines.

Codelco, the Chilean government-owned copper miner, is the world's largest copper producer. And, Chile is where most of the copper comes from.

Things are not going well.

Production is at its lowest in a quarter century, costs have surged, and profits have slumped – all at a time when the world's need for copper is greater than ever.

Cod elco's production fell more than 10% in 2022 and is set to fall another 7% this year, to 1.35 million metric tons.

This is more than a 20% drop from six years ago.

But, it is not only Codelco, ore grade is deteriorating around the world as exis ting deposits are mined and new ones are more difficult and costly to develop.

Cod elco's CEO said "There's no easy mining left—not in Chile nor the rest of the world."

Global production issues confirmed.

I came across an interesting Twitter thread looking at Q1 2023 financial statements from the biggest copper producers.

Copper production from Q1 2023 to Q1 2022, production was down ~200kt.

The biggest contributor to falling numbers is the fact that there is consistently less copper in every tonne of rock that comes out of the ground (Note: Percentage of copper per tonne of rock is known as grade.)

It is becoming more expensive to mine a pound of copper. Add to that the fact that energy and labor prices are skyrocketing.

4 of the 8 copper companies that reported cash costs saw increases of more than 20% from last quarter…

Let that sink in. 20% increase in costs in 3-months. That is insane!

All of this is to say one thing: the world's future copper supply is seriously in trouble.

We need much higher copper prices to incentivize exploration and development. And remember, we can't just turn on the taps and produce more Cu - It takes +10-years to bring a new copper mine online.

Oh, BTW Invent ories are running dry...

Below is a chart of gl obal copper inventories over the past 10 years. The gray area is the high, and low range, the white line is the average, and the orange is the 2023 inventory level.

This chart should scar e you because it says one thing: the world has no copper inventories.

In summary:

Copper demand is stronger than ever.
The world's biggest copper miner is having major production issues.
Costs are up and production is down for the world's top 10 biggest copper producers.
Current copper inventories are lower than they have been in the past 10 years.

My takeaway is simple: Own copper or be poor.

I don't want to be poor, and either do Ri Members. That's why we're about to launch our next Ri Deal:

Pr oject Patriot

In Project Patriot we're covering three unique deals, designed to provide Me mbers access to critical commodities:

Copper
Natural Gas
Lithium

I have been following the entrepreneurs leading these opportunities closely waiting for a chance to get myself (and Ri Members) into their deal.

Now, they are all happening at the same time.

These deals will be launching soon and we only have room for 20 new Ri Memb ers.

We're offering a 2-day, first come first serve sale.

We'll be selling Resource Insider Memberships for $1,499 starting on Thursday June 8th until Saturday at 5pm (or until 20 new members sign up). Whichever comes first.

We haven't had a sale at this price point since 2018, and we won't be again anytime soon. So if you've been eyeing membership you want a deal, this is your chance.

Memberships will sell fast.