Copper (Cu), Zinc (Zn) and Nickel (Ni) are three metals discussed by inside professionals in this new sector report from the Wall Street Transcript.
In his exclusive 2,308 word interview, Raul Jacob, Vice President, Finance, Treasurer and Chief Financial Officer of Southern Copper Corporation and Director of Controller and Finance of Southern Peru, discusses the upside for his company. Recently, he was also Vice President of the Peruvian National Mining, Oil and Energy Association and President of its mining chapter. He is currently a copper bull:
“It is not that supply is decreasing, but it’s not growing at the rate that is required for demand. Demand is growing at a healthy rate, a little bit north of 2.5% worldwide for this year. However, supply is not catching up at that pace for the number of projects that are being developed and the amount of copper that they will bring to the market in the next few years. So given the pace for demand, in the next few years, we will face a deficit in the copper market.”
In his 2,778 word interview, Christopher E. Herald, the CEO, President and Director of Solitario Zinc Corp. is excited about the near term prospects for his company. Mr. Herald has over 40 years of experience in the mining industry. He was responsible for the formation of Solitario in 1992 and has directed the company since then. He has held various exploration geology positions in Anaconda Minerals, Echo Bay Mines and management positions in Crown Resources during his career.
“We saw an opportunity where the zinc space was being neglected, and there weren’t any new mines that were being brought into production during that period. So we thought it would be a really good strategy to move into a metal that was underappreciated. And we believe the zinc uptrend is going to continue.
It’s close to balance right now, but still somewhat in deficit, and world demand continues to grow. There are only a couple of new zinc mine expansions in the world today, certainly not enough to fill the gap of a continued growth rate, as well as a continuation of some mines shutting down. So there has been a kind of perfect storm for the metal.”
Stefan Ioannou, Ph.D., is Analyst of Cormark Securities Inc. Dr. Ioannou is a mining engineer and holds a Ph.D. in economic geology from the University of Toronto. He joined Cormark in December 2016, working in equity research for 13 years with Haywood Securities — base metals analyst since 2006. Prior to that, Dr. Ioannou worked as an exploration geologist in Nevada and throughout the Canadian Shield. In his 3,417 word interview, exclusive to the Wall Street Transcript, Mr. Ioannou cautions investors:
“I think the one pitfall in terms of the electrical vehicle narrative is adoption time, especially in the context of near-term market patience. For example, we saw nickel move significantly higher through the latter half of last year and the first half of this year on speculation that nickel is going to play a significant role in the battery chain…However, we are still several years away from seeing nickel-specific battery technology translate into meaningful new consumption demand for the metal.”
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