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Data Projects that Copper Price Remains Positive as Demand Growth Continues for EVs

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Data Projects that Copper Price Remains Positive as Demand Growth Continues for EVs

FinancialBuzz.com News Commentary

PR Newswire

NEW YORK, May 11, 2018 /PRNewswire/ --

According to data provided by the International Copper Association (ICA), Copper demand is expected to be substantially impacted by the growing market for electric vehicles (EVs) over the next decade. The research indicates that all types of EV require a substantial amount of copper. The metal is used in batteries, windings and copper rotors used in electric motors, wiring, busbars and charging infrastructure. The demand for EVs is expected to increase drastically over the next ten years, driven by new technology innovations, and more affordable models. This increase will cause a greater demand for copper. The study projects that by 2027, an estimated 27 million electric vehicles will be on the road, up from 3 million in 2017. As a result, copper demand in EVs will increase from 185,000 tonnes in 2017 to 1.74 million tonnes in 2027. European Electric Metals Inc. (OTC:EVXXF), Nevsun Resources Ltd. (NYSE:NSU), PolyMet Mining Corp. (NYSE:PLM), Entrée Resources Ltd. (NYSE:EGI), Avino Silver & Gold Mines Ltd. (NYSE:ASM)

China is set to play a major role in the near and long term future of the Copper market. According to Reuters, "London copper prices rose for a second session on Thursday on falling inventories and signs of strong demand in top consumer China, while aluminum retreated for the first time in four trading days… China imported 442,000 tonnes of unwrought copper in April, according to customs data released this week, the highest monthly total so far in 2018… Three-month copper on the London Metal Exchange (LME) was up 0.8 percent at $6,866.5 a tonne, as of 0854 GMT. The most-traded July copper contract on the Shanghai Futures Exchange ended 0.3 percent higher at 51,070 yuan ($8,036.82) a tonne."

European Electric Metals Inc. (OTC:EVXXF) is also listed on the TSX Venture Exchange under the ticker (TSX-V: EVX). On May 2nd the company announced that, "it has received assay results from the first four holes from the Phase 1 drill program at the company's Rehova Copper Project in Albania. Three of the holes were shallow holes, drilled in the periphery of the Kanisqel pit, with the aim of targeting near surface mineralization. The fourth hole targeted mineralization at the nearby historical BG deposit. All four of these initial holes intersected copper mineralization while assays are pending on additional holes drilled. These holes are vertical and the widths described below are all true widths.

Drill hole REH-05A in the Kanisqel west pit intersected 10 meters of 3.96% Cu from 51.2 meters depth and a lower grade zone of 0.66% Cu between 43.0 meters and 47.2 meters. The nearby historic hole (DH #05) reported a mineralized zone of 19 meters at 2.84% Cu. The hole in Kanisqel east (REH-49B) pit area located 257 meters from REH-05A intersected near surface mineralization (19 meters from the surface) that included a meter sample assaying 0.81% Cu.

On the BG deposit, drill hole 128A drilled on its eastern edge, encountered 11.5 meters of mineralization averaging 1.67% Cu from 98 meters. This is slightly higher than the nearby historic drill hole assay over 11.7 meters grading 1.42% Cu. Both the holes in Kanisqel pit area and BG are infill holes that are beginning to confirm historic drill results. Samples from the 4 additional holes that have been completed are being prepared for submission to ALS Global.

The samples were prepared at ALS laboratory in Bor, Serbia and sent for analysis to ALS laboratories in Europe. The Company included external control samples (blank and standards). ALS employed their own internal QAQC and control sampling.

Rehova is located 115 kilometers southeast of Tirana (200 km by road) and is on the electrical power grid. The property encompasses four historical volcanogenic massive sulphide deposits. These are surrounded by exploration areas of interest that have not yet been systematically tested using modern exploration techniques and technology. The four known deposits, called BG, Kanisqel, Ciflig and DT, comprise the Rehova copper mine complex, a historically producing mining operation which was operated by the Albanian state copper enterprise."

Nevsun Resources Ltd. (NYSE:NSU) is the 100% owner of the high-grade copper-gold Timok Upper Zone and 60.4% owner of the Timok Lower Zone in Serbia. On April 26, 2018, the company reported its financial results for the three months ended March 31, 2018. The company produced 71.6 million pounds of zinc and 8.9 million pounds of copper at Bisha. It sold 53.4 million pounds of payable zinc in concentrate and 7.8 million pounds of payable copper in concentrate. In Q1 2018, the Company released the results of the PFS for the Timok Upper Zone copper-gold project in Serbia. The PFS confirmed the extraordinary value of the Timok Project, a high-grade, high return, fully executable copper project in a supportive jurisdiction. The PFS reflected an after-tax NAV8% of $1.8 billion and IRR of 80% at $3.15 per pound copper with a payback period of less than one year based on an initial reserve of 27 million tonnes at 3.3% copper and 2.1 grams per tonne gold.

PolyMet Mining Corp. (NYSE:PLM) is a publicly traded mine development company that owns 100 percent of Poly Met Mining, Inc., a Minnesota corporation that controls 100 percent of the NorthMet copper-nickel-precious metals ore body through a long-term lease and owns 100 percent of the Erie Plant, a large processing facility located approximately six miles from the ore body in the established mining district of the Mesabi Iron Range in northeastern Minnesota. On March 28, 2018, the company reported that it has filed its financial results for the eleven months ended December 31, 2017. In March 2018, the company issued an Updated Technical Report under NI 43-101 incorporating process improvements, project improvements and environmental controls described in the Final Environmental Impact Statement and draft permits. The update also included detailed production, capital, operating and valuation estimates as well as an assessment of potential future opportunities.

Entrée Resources Ltd. (NYSE:EGI) is a well-funded Canadian mining company with a unique carried 20% or 30% joint venture interest in an integral part of the Oyu Tolgoi copper-gold mining project in Mongolia. The joint venture property includes Lift 1 and Lift 2 of the Hugo North Extension deposit and the Heruga copper-gold-molybdenum deposit, along with an extensive, highly prospective exploration land package, which covers almost 15 kilometers strike length to the north and south of the current Oyu Tolgoi trend of world class copper-gold deposits. The Oyu Tolgoi project is widely recognised as one of the world's largest and most important new copper-gold mines, with more than 80% of the project's value residing underground. Based on current known resources, the Oyu Tolgoi project could potentially be producing copper and gold for more than 95 years.

Avino Silver & Gold Mines Ltd. (NYSE:ASM) is a silver and gold producer with a diversified pipeline of gold, silver and base metals properties in Mexico and Canada employing close to 600 people, and has created over 1,600 indirect jobs in Mexico. On April 17, 2018, the company announced first quarter 2018 production results from its Avino property near Durango, Mexico. The silver equivalent production in Q1, 2018 increased by 9% compared to Q1, 2017 due to an increase in the tonnage processed and higher gold grades at the Avino Mine, together with higher silver grades at the San Gonzalo Mine. The gold production in Q1, 2018 increased by 12% compared to Q1, 2017 whereas the silver and copper production decreased by 3% and 5% respectively. Copper production decreased by 5% to 970,165 lbs.

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