Hey everyone how is it going?? I hope you are having a great day. The weather is starting to turn to spring and snow is finally starting to melt. Today were going to touch on copper production and what to expect moving forward.
Copper the new Gold??
As I talked about last time that the world is starting to turn it’s focus to zero carbon emissions by 2050. This is a huge commitment from everyone to actively change their way of life in order to make cleaner renewable energy. Although, most people believe it is physically impossible to get rid of fossil fuels completely and still be able to operate without it. I don’t think we will be able to get completely off fossil fuels in the next five to ten years that would be a very bold false statement. However, you would be naïve to think that the world could not reduce the usage of fossil fuels significantly and have a dramatic effect on how much we use fossil fuels to operate in ten years from now.
No secret that he are heading into technologic advances with the electric energy moving forward. With the demand for electric cars and hybrid cars going insane. In an article written by Copper Alliance, 2017.”Copper Drives Electric Vehicles” shows that in 2016 electric vehicles used 26 million pounds of copper for production. To better understand this we look at the demand for copper in electric vehicles compared to conventional. A conventional vehicle uses approximately 18-49 lbs. of copper to produce a vehicle. Now look lets consider how much electric hybrid cars and buses need for production and their charging stations to operate them. Hybrid Car 84lbs. of copper, Car Charging Port 132lbs of copper, Hybrid electric car battery 183lbs. of copper, Electric Bus 196lbs. of copper, and electric bus battery 814lbs. Hybrid car alone accumulates 183lb. of copper 3-9 times more copper than a conventional car. This is huge! this is one area of many that will switch over from fuel operated to electric. Copper being the cheap and easy to use conductor is going to be in very high demand. Copper Alliance went on to predict the the total demand for copper for Electric vehicles and charging ports could reach 1700 kilotons. Or for most of us that don’t calculate Kilotons in are head, it will be a demand of over 3,747,858,457(Unitconverters.net,2021) from 2016 which was only 26 million. Over three billion pounds!!! Just think and this is just for electric vehicles.
Quick note: I am not a financial advisor, this is all my personal opinion formed by research I have found for myself. I highly encourage you to do your own research on companies if you intend to invest. Ok, now we have that out of the way. What does this mean for the future of our economy moving forward?
My last post I mentioned a company by the name of Freeport McMoRan Inc. (FCX), one of the top 10 copper producing companies in the World. After overviewing their company they are no strangers when it comes to mining copper. They have been around since 1988 and the CEO started in 1989. The CEO has been inducted into the mining Hall of Fame and their CFO has been with the company for over 30 years. Freeport McMoRan Inc. owns the largest gold mine in the world and second largest copper mine in the world in Grasberg, Indonesia. Although, slowed down by the pandemic with everyone else. They are starting to really ramp up productions as things calm down and the demand for copper is moving.
Let’s review, I talked about the demand of copper for electric vehicle’s possibly skyrocketing in the coming years with the new green initiative. Freeport McMorran Inc. is a huge fortune 500 company and top ten producing copper company. Knowing this and foreshadowing where were going. I would focus on Electric Car companies , Mining companies, and 5G. Copper prices will go up but, must be at reasonable price for production to happen. Finding the companies that will contribute to our future grow is key.
Thanks for reading.
Helse.
