Gerardo Del Real,
Editor
July 15, 2024
This is your Resource Stock Digest editor Gerardo Del Real here with some Monday coffee talking points and thoughts.
What am I watching this week?
Well, all eyes continue to be on copper as the red metal is looking to make a spirited push towards US$5 per pound; currently right at US$4.37. Next, I suspect we’ll see an eventual run towards US$6 and US$7 a pound.
It’s no coincidence that C$3.67B Filo Corp. is now being rumored to be a takeout target by Lundin Mining Corp. and BHP Group.
I expect M&A in the copper space to continue to increase over the coming few quarters. I also expect copper-dominant deposits and discoveries of significance to command a premium. And, like I said, I think we're in for a heck of a ride in the copper space over the next 3 to 5 years.
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All of the easy-to-mine copper is gone at a time when the world needs more of it.
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Of course, my biggest exposure to the copper space continues to be Hannan Metals (TSX-V: HAN)(OTC: HANNF), which I believe will be the copper exploration story of the next several years. I know this is a bold statement but I would not be surprised to see multiple Filos in the Hannan portfolio after the next couple of years of drilling.
We’re seeing a lot of capital flowing into the copper space, including firms that are collectively raising hundreds of millions of dollars for exploration and development. To me, this is a time where I also firmly believe we’re going to start seeing the junior copper explorers going out there and doing what their shareholders demand, which is putting the drills in motion in search of new, large-scale deposits of the red metal.
Turning to precious metals, gold is surging once again. And, this time, quite convincingly above the US$2,400 level, currently at US$2,438 an ounce. Silver is presently holding the US$31 per ounce mark.
The dollar index continues to break down, currently just north of 104.
Uranium is looking poised for its next leg higher as well… so plenty to watch out there and a lot to look forward to with the metals continuing to show strength.
As you are all well aware, I’ve been talking about my unbridled excitement for the second half of the year for months on end… and we’re finally here. And I don't think it's a coincidence that things are starting to pick up the way they are.
Interesting times we’re living in, folks, as we all know. With that said, I hope everyone has a great week… and be safe out there.
Let's get it!
Gerardo Del Real
Editor, Resource Stock Digest