Muzhu Mining Ltd. (CSE: MUZU)
Creating lasting wealth by developing gold and silver properties with near-term mining potential
The stock price of copper miner Freeport McMoRan (FCX) has significant potential for a surge over the next decade, in line with increasing copper prices and the company’s capacity to expand production. Here are the reasons why.
The case for rising copper prices often hinges on assumptions about future demand. Copper is a vital component of the global economy due to its widespread applications in areas such as power distribution, construction, and transportation. Moreover, copper plays a crucial role in the energy transition and the broader trend of electrification.
Replacing internal combustion engines (ICE) with electric vehicles (EV) will lead to an increase in copper demand, as electric vehicles require significantly more copper. Additionally, the infrastructure needed for EV charging networks will rely on copper to operate and connect to the grid.
Furthermore, various interconnected technologies, including industrial automation, smart buildings/infrastructure, and data centers, are driving the push for electrification.
However, insufficient investment and a lack of major copper discoveries in recent years could lead to supply shortages. For instance, research from S&P Global indicates that among 239 significant copper discoveries since 1990, only 14 have occurred in the past decade, and merely four in the last five years.
Freeport-McMoRan is well-positioned to benefit from its environment and has the potential to increase production by expanding investments in existing projects in relatively stable countries like the United States and Indonesia. Additionally, the company’s leaching technology allows it to extract copper from existing inventories. The management’s goal is to ultimately achieve an annual output of 800 million pounds of leached copper, which is substantial considering the total expected production of 4.1 billion pounds in 2024.
Therefore, for investors looking to capitalize on the potential rise in copper prices, Freeport-McMoRan’s stock is undoubtedly an ideal choice.
