Copper is now in the early stages of what appears to be a long-term, multi-year bull market. With soaring demand for the copper needed in electric vehicles, the power grid, data centers and more there is significant upside potential for those companies bringing copper supplies online. All of which is a strong catalyst for stocks, such as Troilus Gold Corp. (TSX: TLG) (OTCQX: CHXMF), Glencore (OTC: GLNCY), Freeport-McMoRan (NYSE: FCX), Rio Tinto (NYSE: RIO) and BHP Group (NYSE: BHP).
In addition, copper demand, according to BHP Group, is expected to grow by a million tonnes per year until 2035, noted Mining-Technology.com. They added that, “The energy transition has seen an influx of copper-intensive technologies deployed, leading to the global production rate of copper doubling. BHP expects the copper industry to face significant challenges to supply with such drastic increases in demand.”
“Rising costs of production and declining ore grades, which BHP estimates have fallen by 40% since 1991, are two key issues impacting copper supply. The company anticipates an investment of $250bn will be required to address the gap between copper supply and demand by 2050,” added BHP Group.
Look at Troilus Gold Corp. (TSX: TLG) (OTCQX: CHXMF), For Example
Troilus Gold Corp. has announced it has received an additional letter of intent for up to US$300 million in project financing from Export Development Canada (EDC), bringing total potential financing to approximately US$1.3 billion. This LOI complements previously announced commitments from Euler Hermes (see press release from November 13, 2024),), Finnvera plc (Finland), and EKN (see press release from November 19, 2024).
As a Canadian company, this support from EDC reinforces the Troilus Project’s importance to Canada’s critical minerals strategy and broader resource objectives, while highlighting the nation’s leadership in advancing domestic projects with global significance. With world-class partners and a multi-faceted financing structure in place, Troilus is well-positioned to advance its asset toward construction as it moves into 2025.
Highlights:
- EDC is prepared to consider debt financing support for the development and construction of the Project in an amount up to US$ 300 million.
- EDC is a financial Crown corporation owned by the Government of Canada and it specializes in providing financing solutions for Canadian exporters. In 2023 alone, EDC facilitated more than US$8 billion in business through its customers in the mining sector.
- EDC support is subject to its rigorous due diligence process, including but not limited to, economic, technical, environmental and social.
- The LOI builds upon previous in-principle support from other global ECA’s, including a US$500 million LOI from Euler Hermes, a US$300 million LOI from Finnvera, and a US$200 million LOI from EKN. Combined, these LOIs represent a total of US$1.3 billion in potential financing support, providing a robust foundation for a multi-faceted financing structure and further solidifying the Troilus Project's path toward becoming a significant North American copper and gold producer.
Justin Reid, CEO of Troilus, commented, “The LOI from Export Development Canada, alongside those from other leading ECA’s, represents the culmination of significant effort and collaboration by our team and partners. As a Canadian company, this support from EDC reinforces the Troilus Project’s importance to Canada’s critical minerals strategy and broader resource objectives, while highlighting our nation’s leadership in advancing domestic projects with global significance. It also reflects the growing recognition of Troilus as a highly financeable copper-gold asset capable of providing reliable, long-term supplies of critical minerals to meet rising global demand. As we move into 2025, Troilus is exceptionally well- positioned with world-class partners, a solid financing framework, and exciting developments on the horizon that strengthen our confidence in advancing our asset toward construction.”
Auramet International Inc. continues to assist with the structuring, identification and engagement of potential financing participants.
Other related developments from around the markets include:
Glencore’s Chief Executive Officer, Gary Nagle noted, “Our full-year 2024 production guidance has again been maintained and reflects the additional steelmaking coal volumes that have contributed to our portfolio since closing of the EVR transaction on 11 July 2024. During the current quarter, key anticipated quarterly sequential production improvements have been achieved, notably at African Copper +6kt (+13% Q3/Q2), Antapaccay +9kt (+35% Q3/Q2), Kazzinc +13kt (+27% Q3/Q2), Murrin Murrin +1kt (+7% Q3/Q2) and Australian energy coal +3.6mt (+27% Q3/Q2). Basis Marketing’s performance year to date, we continue to expect full year Marketing Adjusted EBIT in the $3.0-$3.5 billion range, being around the top end of our long-term $2.2-3.2 billion p.a. guidance range.”
Freeport-McMoRan reported third-quarter 2024 net income attributable to common stock of $526 million, $0.36 per share, and adjusted net income attributable to common stock of $556 million, $0.38 per share, after excluding net charges totaling $30 million, $0.02 per share, primarily associated with impairments for legacy oil and gas matters and nonrecurring labor-contract charges at Cerro Verde, partly offset by a reduction in accruals for uncertain U.S. tax positions. Richard Adkerson, Chairman of the Board, and Kathleen Quirk, President and CEO, said, “During the third quarter, our global team generated strong margins and cash flows, achieved our production targets, continued to prioritize productivity and cost control, and advanced initiatives for future growth. We remain focused on strong execution of our plans globally as we work to address damage from a recent fire affecting a portion of our new Indonesia smelter facilities. We are confident in our team’s ability to restore smelter operations and achieve a safe and efficient ramp-up as soon as possible. The outlook for our business is positive, supported by our position as a leading copper producer with a strong financial profile, favorable market fundamentals and value enhancing options for future growth.”
Rio Tinto Chief Executive Jakob Stausholm recently said: “Our operational performance continues to progress. While there are still significant improvements ahead, we are beginning to see a step-change in production, including from our Queensland bauxite business following the roll-out of the Safe Production System. We are growing with discipline in the materials the world needs for the energy transition. Construction of the Simandou high grade iron ore project in Guinea is advancing at pace, the ramp up of the Oyu Tolgoi underground is on track and we are set to achieve first production from the Rincon starter plant by the end of the year We continue to prioritise the decarbonisation of our business, announcing the installation of carbon free aluminium smelting cells using ELYSIS technology at our Arvida smelter in Quebec and an investment in a R&D facility to test our low-carbon ironmaking process, BioIron, in Western Australia. We also signed 20-year electricity arrangements backed by renewable electricity to secure the future of the Tiwai Point aluminium smelter in New Zealand. As we progress against our four objectives and strategy, we have a clear long-term pathway to profitable growth and continued attractive shareholder returns.”
BHP Group says it’s “strengthening our important strategic partnership with global technology company ABB, through the signing of a multi-year Global Framework Agreement. ABB is a leader in industrial automation, electrification and digitalisation, and delivers critical technologies and equipment for BHP’s global operations including Escondida in Chile, our Jansen project in Canada, and various packages across our Australian assets. This new agreement will enable further opportunities for BHP and ABB to collaborate in support of project delivery, operations and maintenance, as well as progressing operational decarbonisation efforts across BHP’s global operations.”
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