In a recent note, Goldman Sachs summed up the changing nature of the industry in the context of copper this way:
“…fundamentals were once so connected to global growth, copper has been viewed as having a ‘PhD’ in macroeconomics.
“Yet today, ‘Dr. Copper’ no longer exists – with ESG, geopolitics and chronic underinvestment all driving copper fundamentals far more than overall global growth.
“In our view, Copper’s PhD is in public policy, not economics, rallying on concerns of Chilean mining royalties, accelerating European renewables demand and Russian sanctions supply risks rather than falling global growth expectations.”
Possible is the new probable
Resources may be measured or indicated, reserves may still be labelled proven and probable, but developing deposits has only become more uncertain.
In a presentation at copper mining’s biggest annual gathering in Santiago, CRU head of base metal…
