The mainstream press, and even some analysts and commentators in the alternative media, tend to focus on gold and silver while underestimating the importance of copper. The world runs on copper, as it has myriad of industrial uses and applications year-round, in every nation.
The demand for copper is bound to head higher, with critical applications in building construction, electronic product manufacturing, power generation and transmission, as well as the production of transportation vehicles (including the up-and-coming electric vehicles market) and industrial machinery.
By far, the biggest user base of copper is Asia, with a 68% share of the global copper market:
Courtesy: IWCC, ICA, Joshua Hall
So the international demand for copper is robust and growing, and yet there is a widening divergence between the demand and the supply, which is going to boost the price of copper going forward. The data indicates that the supply of copper will peak this year before falling hard against a rapidly increasing demand trajectory:
Courtesy: Wood Mackenzie, CRU, ICSG, Teck, Joshua Hall
An authority in the field who has taken a strongly bullish stance on copper is Vince Sorace, the President, CEO, and Director of Kutcho Copper Corp. (TSXV:KC, OTC:KCCFF). Noting the growing demand for copper in electric vehicles, renewable energy, etc., Mr. Sorace emphasizes the severe supply deficit in copper.
According to Sorace, the combination of high demand and a supply shortage which will continue through this year and the coming years will lead to much higher copper prices. He also expects that there may be a major catalyst for higher copper prices coming in the form of a trade deal between the United States and China.
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Sorace likes the copper markets and sees great potential for higher prices in the near future, and he had been searching for a promising project in the copper space. The fortunate result of his search is the Kutcho Project, an advanced-stage asset located in British Columbia, a top-tier mining jurisdiction with major mines and active projects.
The Kutcho Project was so appealing to Sorace due to its scalability, robust economics and high margin, low capital requirements, and location in a safe jurisdiction. According to Sorace, the project is situated in a very pro-mining, first-nations jurisdiction, and the company has had great success in this area.
Courtesy: Kutcho Copper Corp.
This project was acquired in December of 2017, and much of the necessary groundwork was completed in 2018: the feasibility study, geotechnical drilling, metallurgical drilling, re-engaging their baseline studies, as well as resource expansion drilling. With all of this completed, the results of the feasibility study will be released in the next six months.
And because it’s a high-margin, low-capital-requirements project, according to Sorace, there’s a very strong upside potential. Kutcho stock shares are trading far under fair value, at a $17 million market cap right now. The groundwork done in 2018, culminating in the upcoming release of the feasibility study, should provide excellent upside potential for KCC/KCCFF shares.
Plus, in an exciting development, Kutcho Copper Corp. recently announced that they would be working with mining technology company MineHub to build a new mining supply chain solution on top of the IBM Blockchain Platform. This collaboration will use blockchain technology to help improve operational efficiencies, logistics, and financing and reduce costs in the high-value mineral concentrates supply chain, from mine to end buyer.
Mr. Sorace clearly looks forward to implementing this blockchain-driven solution: “By digitizing the supply chain, we can increase the level of automation, reduce reliance on intermediaries and increase the speed at which goods are transferred from miners to end buyers… This is a significant advancement for an industry looking to integrate and use data in ways not previously possible.”
We see the massive potential for the Kutcho Project and for shares of KC/KCCFF throughout this year and the coming years. Right now is an amazing opportunity for prospective copper investors – and particularly for investors in Kutcho Copper.
Research Partner, PortfolioWealthGlobal.com
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This work is based on SEC filings, current events, interviews, corporate press releases and what we’ve learned as financial journalists. It may contain errors and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. Gold Standard Media who has the same owners as Portfolio Wealth Global has been compensated five hundred thousand dollars for a three year marketing agreement. We are also shareholders of the company and consider the position a long term holding. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought.