Copper prices have hit their highest level in 14 months, exceeding $9,300 per ton, driven by mounting supply risks and hopes for a global economic recovery. This rally, which began in early February, was bolstered after Fed Chair Jerome Powell pumped the brakes on potential rate cuts.
At the same time, setbacks at key mining operations have forced smelters to pay unprecedentedly high prices for raw ore. In response, China’s biggest copper smelters, responsible for over half of the global refined copper production, are planning to collectively cut output by 5-10%.
Experts see copper prices soaring by more than 75% over the next two years, driven by disruptions in mining supply and increased demand for the metal, especially in renewable energy. The recent COP28 conference, where over 60 countries supported tripling global renewable energy capacity by 2030, is seen as extremely bullish for copper, with forecasts suggesting an additional 4.2 million tons of demand by 2030.
Abitibi Metals Corp. (CSE:AMQ) (OTCQB:AMQFF) is well-positioned to capitalize on the surging copper market. The company recently secured funding to complete a 7-year option agreement in just four months, acquiring an 80% stake in the B26 Polymetallic Copper Deposit, an advanced, high-grade development project with an historical indicated resource of 6.97 million tonnes at 2.94% copper equivalent (Cu Eq) and 4.41 Mt at 2.97% Cu Eq inferred.
Abitibi Metals is currently conducting a fully funded 50,000 metres drill program to explore the potential of the B26 Deposit further. The company has also announced the expansion of its maiden drill program to approximately 13,500 metres, to be completed by the end of April, and a fully funded 30,000-metre 2024 field season.
With a substantial exploration budget of $15.1 million for 2024-2025 and backing from heavyweight investors, Abitibi Metals is well-positioned to make significant strides in the copper market in the coming years.
}
This news story relied on a press release distributed by News Direct. Blockchain Registration, Verification & Enhancement provided by NewsRamp™. The source URL for this press release is Copper Prices Soar on Supply Risks and Economic Recovery Hopes.