Rising Demand For Copper For EVs Presents A Unique Opportunity For Companies Like This One Using A Different Approach In Mining

Rising Demand For Copper For EVs Presents A Unique Opportunity For Companies Like This One Using A Different Approach In Mining

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It is hard to imagine how humanity would have advanced without copper. Identified by its reddish-gold color, copper has found its way into nearly every facet of human life.

If you haven’t noticed by now, copper is everywhere, from the laptop you might be reading this article on to the wiring in your walls and the pipes in your plumbing system.

It can also be found in coins, household electronic and personal devices — like TVs, printers, radios, stoves, refrigerators, washing machines, dryers and dishwashers — because it conducts heat and electricity well.

Demand for copper is even sometimes viewed as a leading indicator of an economy’s health because of its widespread applications in most sectors. That demand is reflected in its market price.

Currently, more than five million tons of copper are produced annually, and it is the third-most used metal globally — just behind aluminum and iron.

Copper And The Evolution Of Electric Cars

As countries begin to shift toward electric vehicles (EVs) to cut down on carbon emissions, copper has reportedly emerged as one of the cornerstones of the EV revolution.

The EV industry — which has players like Tesla Inc. TSLA and Rivian Automotive Inc. RIVN — is dependent on copper because of its high electrical conductivity, durability and malleability. It is a major component in electric motors, batteries, inverters, wiring and charging stations. An EV can contain more than a mile of copper wiring in its stator windings.

Several analysts from banks such as Goldman Sachs Group Inc. GS are saying that the increasing demand could significantly impact the copper market, and are bullish about the copper price forecast for 2022 and beyond. By Q4 2022, Goldman Sachs predicts copper prices to reach $12,250 per tonne. Meanwhile, Bank of America Corp. BAC expects copper prices to average $9,813 per tonne through 2022.

What Does Precious Metal Growth Means For Miners Like Max Resource?

The increasing demand for copper and other precious metals like gold and silver presents a unique growth opportunity for junior mining companies such as Max Resource Corp. MAX MXROF.

Max Resource is a mineral exploration company advancing the newly discovered district-scale CESAR copper-silver project in Colombia.

The wholly-owned CESAR project sits along the Colombian portion of the world’s largest producing copper belt (Andean belt) in an area with world-class infrastructure due to the presence of global majors like Glencore Plc. GLEN and Chevron Corp. CVX which have significant coal and oil operations nearby.

What makes CESAR so interesting is the sheer size of the project - over 55 miles in length - plus the fact that it was not discovered before. The basin is huge and already mined for oil and coal, but not yet for copper. That was until 2 years ago when Max Resource discovered it.

Interestingly, the company says it has no plans to go into production. Unlike copper miners in the industry, Max Resources says it is an exploration company focused on delivering value to its shareholders by being taken out — the company hopes to do this by identifying valuable deposits that have been either misunderstood or overlooked by larger companies. 

The company states that its specialty is reevaluating such assets, finding value in them and then selling them off.

Max Resource boasts a reputation for working closely with governments, federal, municipalities and agencies in the communities it operates in. Evidence could be in the number of mining concessions granted to the company in 2021 and 2022 alone — it has 19 to date, with 16 last year alone which was more than any other mining company operating in Colombia. 

Read more about Max Resource’s CESAR Copper Silver and RT Gold projects at maxresource.com/?cesar and maxresource.com/?rt.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

Posted In: Max ResourcesPartner ContentEmerging MarketsMarkets

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