The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.
The electric vehicles (EVs) market has consistently made headlines since the beginning of 2021. The biggest interest related to the growing industry are batteries, material sources and components for sustainability. Within the idea of the ideal EV there are other key components that play significant roles in the end product.
Copper, for example, is one of the most important components used in EV batteries, windings and copper rotors of electric motors, as well as in the wiring and charging infrastructure. In fact, an average of 180lbs of copper is typically used in EVs, nearly four times as much of the metal as a conventional car.
The Biden administration has just announced his administration plans to spend over $200 Billion on promoting EV production and creating more charging stations. They also consider the metals used in the electrification of the automotive industry to be strategic metals, that the US needs to produce and not rely on international sources. They estimate another 1.3M jobs from the investment into EV’s. US-based copper assets will need to help feed this demand.
Additionally, copper is an antimicrobial and antiviral (Copper anti-viral). Copper is quickly becoming the surface coating solution for public spaces and hospitals as it is proven to be a killer agent against superbugs (Superbug solution, Copper). For instance, in Canada, all of the public busses are being retrofitted with copper coating on the handles due to the spread of Coronavirus.
the American Jobs Plan proposed by the Biden administration also involves funding road and rail transportation, power grid, and telecommunications projects that will require hundreds of thousands of tons of copper, and other basic materials.
Another important usage of copper is wind turbines. Wyoming for example, which for decades profited from the coal mining industry, is now one of the states leading the way in the clean energy future. Wyoming is the largest exporter of energy in the United States and ranks first in terms of land-based class 6 and 7 wind turbine sites.
U.S. Gold Corp. USAU, is a US-based resource exploration and development company. They are currently amplifying its potential with its Copper King (CK) Gold project located in southeast Wyoming. This project is a development stage, large-tonnage, copper-gold deposit with high-grade mineralization exposed at the surface, with potential for expanding resources.
Here’s what you need to know:
The Copper King Gold Project
The property comprises about 1,120 acres (2 square miles) and is 100% owned by U.S. Gold Corp. Copper King offers the company near-term, low-cost, open-pit production potential.
Last fall, the company brought in legendary mine builder, George Bee to advance Copper King towards production. As part of Mr. Bee’s new role, he conducted a complete re-evaluation of the project and the deposit, drilling in excess of 30 holes into CK to determine the scale of the intended mining operation.
The CK project was previously forecast to produce in excess of 181,000,000 pounds of copper, along with approximately 700,000 ounces of gold. Or to put it in simpler terms, enough copper to build 1,000,000 EV’s, or a combined metal value of over $2 Billion (copper and gold values insitu). The team at US Gold however believes the company can increase this value and as such are in the final stages of a complete re-evaluation and pre-feasibility study to present to the State of Wyoming for mine permits in the fall of 2021.
Why U.S. Gold Corp.’s Amplification of the Potential of Copper Matters
Apart from being in line with the development plans of the current U.S. administration, a major rail line is located just two miles south of the project with a rail spur. USAU can use that rail spur to ship copper concentrate out directly to Nevada, and Tesla’s TSLA Gigafactory is located in Sparks, Nevada.
Every new Tesla uses an average of 180 pounds of copper. Additionally, this is not the only company that will need this material for its EVs. Traditional automakers like General Motors Co. GM and Ford Motor Company F, among others, are going electric, which means a supply boom is expected, causing copper demand to soar.
Large quantities of copper will be needed for the “electrification” of the U.S. as well. It’s not just for cars — trucks, planes, ships and trains are all going electric “green.” Copper is the “green” metal. Copper has been on a tear. Since hitting a low of $2.00 per pound in the March 2020 Covid selloff, copper prices have rallied up to their current $4.50 level. Many analysts see further upside for the “green metal” as the global economies rebound from the recent pandemic. Publicly traded copper companies such as Freeport-McMoran FCX, Taseko Mines TGB, Copper Miners ETF COPX and Southern Copper SCCO have benefited from the renewed copper interest.
The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.
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