Escalating Global Demand & Increased Consumption of Copper t

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|Jan 28|magazine33 min read

PALM BEACH, Florida, Jan. 27, 2020 /PRNewswire/ -- Various industry publications from around the world point out that global demand for copper metal (produced from refined copper and recycled scrap) is projected to advanced 4.2 percent per year through 2019 to 36.0 million metric tons, valued at $261 Billion. In this year, robust gains in building construction expenditures are expected to boost the use of copper wire, tube, and other mill products in applications such as building wire and plumbing. Increased infrastructure investment, particularly in developing countries, will further benefit copper suppliers as updates to national power grids drive the production of wire and cable. In addition, advances in global manufacturing output are expected to bolster the use of copper metal in transportation equipment, industrial machinery, domestic appliances, and other durable goods. Active mining companies in the markets this week include: Los Andes Copper Ltd.  (TSX-V: LA), Freeport-McMoRan Inc. (NYSE: FCX), Lundin Mining Corporation (TSX: LUN) (OTCPK: LUNMF), First Quantum Minerals Ltd. (TSX: FM.TO) (OTCPK: FQVLF), Teck Resources Limited (NYSE: TECK).

Industry market reports show that copper is one of the essential metals required for developing industrial economy. Globally, the copper mining industry is one of the leading markets of the metal mining market. Most of the available copper is distributed over large areas, mixed with mineralized materials and rocks. Copper ores undergo through different separation stages and processes to produce pure copper. Major copper mining nations such as Chile and Peru are investing large amounts to boost mining productivity levels. The productivity levels of copper have to be increased in the next few years to meet the global demand arising majorly from industrial economies such as China. However, the increasing complexity and project cost associated with copper mining is one of the major factors preventing major companies from increasing their production levels. The market for copper mining is anticipated to increase at a considerable rate owing to increasing investments in construction projects which is a major consumer of copper industry. 

Los Andes Copper Ltd.  (TSX-V: LA) BREAKING NEWS LOS ANDES COPPER LTD. ANNOUNCES COMPLETION OF NSR ROYALTY AGREEMENT WITH RESOURCE CAPITAL FUND -  Los Andes Copper is pleased to announce that it has entered into a net smelter return ("NSR") financing agreement with Resource Capital Fund VI L.P ("RCF") pursuant to which the Company will receive US$8 million (approximately CDN$10,500,000) from RCF, as consideration for payments corresponding to a production royalty ("Royalty") from the sale of all locatable minerals produced from the San Jose 1/3000 exploitation concession (the "San Jose Concession") that forms part of the Company's Vizcachitas Project in Chile ("the "Project"). Los Andes Copper Ltd. is listed on the TSX-V under the ticker: LA.

The Royalty represents 0.98% NSR for open pit operations and 0.49% NSR for underground operations. Following this transaction, the overall NSR level for the San Jose Concession and for the other concessions covering the mineral resources of the Project is 2.00% for the open pit operations and 1.00% for the underground operations. The economic model presented in the Company's Preliminary Economic Assessment ("PEA") dated June 13, 2019 already includes an NSR level of 2.00% for the open pit operations and 1.00% for the underground operations for all mineral resources. 

Highlights

  • NSR financing for US$8 million from RCF 
    • US$1.5 million has been paid by RCF on closing and registration of documents in Chile
    • The remaining US$6.5 million is scheduled to be paid in four equal quarterly installments, the   first of which is due on March 31, 2020
  • The financing will be primarily used to fund a Prefeasibility Study ("PFS") for the Project and to prepare a baseline for the environmental approval package 

Fernando Porcile, Executive Chairman, commented:

"I am delighted to announce the completion of this NSR royalty agreement which highlights the continued support from RCF to the Vizcachitas Project, and strongly positions the Company to continue successfully developing the Project.

Following the completion of the Project's updated PEA, released in June 2019, the proceeds from this NSR will be used to advance work on the PFS, which has already commenced and is progressing well.

Marine Building Suite 1260 – 355 Burrard Street, Vancouver, BC V6C 2G8 Canada Phone: +1-604-681-2802 Fax: +1-604-682-2802 www.losandescopper.com

Further drilling programmes are also expected as part of the PFS and to explore prospective areas immediately surrounding the current mineralization. We are processing the environmental permits for this drilling.   I look forward to keeping the market updated with further progress." Read this and more news for Los Andes Copper at:  https://www.financialnewsmedia.com/news-la.v/ 

Other recent developments in the mining industry:

Freeport-McMoRan Inc. (NYSE: FCX) recently reported net income (loss) attributable to common stock of $9 million (less than $0.01 per share) in fourth-quarter 2019 and $(239) million ($(0.17) per share) for the year 2019. After adjusting for net charges of $22 million ($0.02 per share), primarily reflecting net charges at PT-FI (mostly for historical contested tax audits) and metals inventory adjustments, partly offset by gains on sales of assets, adjusted net income attributable to common stock totaled $31 million ($0.02 per share) in fourth-quarter 2019.

Richard C. Adkerson, President and Chief Executive Officer, said, "During 2019, we progressed three major initiatives to enhance future cash flows and value for our shareholders. We are on schedule to establish large-scale production from our high-grade, low-cost and long-lived underground ore bodies at Grasberg; the Lone Star project in Arizona is nearing completion; and early results from our innovation initiatives to enhance productivity at our operations in the Americas are positive. Combined, these initiatives are expected to strengthen our cost position, future cash flows and long-term value for our shareholders, further advancing Freeport as foremost in the global copper industry. We are laser focused on execution of these plans designed to increase copper and gold sales by more than 30 percent, reduce unit net cash costs by approximately 25 percent and more than double operating cash flows in 2021 from 2019 levels."

Lundin Mining Corporation (TSX: LUN) (OTCPK: LUNMF) recently announced production results for the three and twelve months ended December 31, 2019 and provides an update on operations and capital projects. The consolidated financial results for the year ended December 31, 2019 will be published on February 20, 2020 .

Marie Inkster, President and CEO commented, "Our mines performed well in the fourth quarter, each achieving their annual production guidance. Particular recognition is owed to our Candelaria team which remained poised and focused on safe operations during a time of considerable unrest in the country. 

We began to realize the benefits of the significant investments made over the last few years in our operations during the second half of 2019. This positive momentum is expected to accelerate in 2020 with the Candelaria reinvestment initiatives and development of Eagle East essentially complete, and as the ZEP ramps-up. Our annual copper production is to increase over 20% this year, zinc production over 18% and nickel production over 22%. We are well positioned to deliver multiple years of strong production, decreasing cash costs and free cash flow generation."

First Quantum Minerals Ltd. (TSX: FM.TO) (OTCPK: FQVLF) recently announced preliminary production for the three months and year ended December 31, 2019, and guidance for production, capital expenditure and costs for the years 2020 to 2022.  The Company achieved its highest ever annual copper production of 702,000 tonnes, an increase of 96kt from 2018 production. Copper production in Q4 2019 was 204kt compared to 158kt in the same quarter in 2018.

Cobre Panama's final mill (8th mill), came on line in mid-December, providing additional capacity on the third milling train.  Mill throughput can now ramp-up to annualized production of 85 million tonnes.  Mill throughput for the month of December was 6.6 million tonnes. Production for Q4 2019 was 60kt with 25kt produced in the month of December.

Teck Resources Limited (NYSE: TECK) (TSX: TECK.A and TECK.B) recently announced it has purchased the SunMine solar energy facility ('SunMine') in Kimberley, British Columbia, from the City of Kimberley.

SunMine is located on fully reclaimed land at Teck's former Sullivan Mine site. The 1.05 MW (megawatt) solar facility, operational since 2015, is the first grid-connected solar facility in British Columbia and the first built on a reclaimed mine site, and has potential for future expansion.

"Our involvement with SunMine is part of our commitment to taking action on climate change, advancing renewable energy development, and supporting the global transition to a low-carbon economy," said Don Lindsay, President and CEO. "SunMine will help us gain firsthand experience with solar power generation as we advance the use of solar power at other operations."

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