How Rising Trade = Copper (Plus) Smelter Squeeze

I learned how necessary copper is for global manufacturing and hence trade from a couple of industrialists.

Be long everything China is short (of) — that was the copper (zinc, platinum, gold) mine developer Robert Friedland.

Copper makes the world go round. That was Liza in the copper-plated release of the film Cabaret, I believe.

Global trade as measured in 2017 volume of goods is about double the pace of last year — up 4.2% the International Monetary Fund is saying.

A lot of it is electronics. A lot of it involves copper (and other metals).

At refineries, TC RC charges are declining, smelter researchers say. Smelters apply these “charges” to miners’ concentrates as spot treatment and refining costs. These charges are probably the lowest since 2011.


Our Notes Section: Uranium | MineLife.org | Drone Delivery Canada [Apologies for spacing of text below — and revising.]


When the TC RC charges that smelters charge are falling, as these refining expenses did in mid-2015 during copper mine disruptions,

copper miners might save 5 percentage points of their costs, down to 15% or less.

“Seeing spot TC/RC’s at levels not seen since copper was above $4/lb indicates smelters are having a difficult time sourcing concentrate,

which in turn indicates the supply-demand balance is shifting to a deficit of supply.” That is Paul West-Sells, who heads the Yukon copper

project developer Western Copper & Gold.

So, instead of saying to you, oy, the copper price is rising (along with nickel and zinc
and other industrial metals),
I thought I would spend a couple of paragraphs on the TC RC metric.
Some trade journals are anticipating supply disruptions for copper in 2018.

This is from one of the industrial reports that came across my desk this week — excerpted:

The spot copper concentrate market (has been flat) the past couple of weeks …  . There are a few tenders pending for shipments in 2018, and indications are that terms could be quite low. Treatment and refining charges are expected to be in the fifties and fives, or perhaps lower. (They were in the seventies — thus, $77 per metric ton + 7.7 cents per pound​– ​in mid-2015.) This latest is an indication that some traders think copper concentrates will be in short supply next year.

One report goes on to say that smelters are negotiating annual terms on long term contracts. ​​The CESCO Asia Copper Week in Shanghai earlier this month was supposed to see smelters  set a range. That range — the fifties into the eighties — is probable for 2018, but that is one w-i-d-e range.This is the first time in a while I have been rooting for a number to go lower.

You all know my preferred and actionable copper developers; they include Ivanhoe Mines, Western Copper & Gold,
Seabridge Gold
.

On zinc, it is Ivanhoe (Africa) and Pasinex Resources, which is looking cheap this week after the Turkey mine co-owner said it was buying into a Nevada zinc property — a “deal” I did not expect (I will leave it at that). Some shareholders might expect a dividend from Pasinex Resources now that its net income is visible and rising. We’ll see.

 

NOTES: I talked for 45 minutes with Tony Di Benedetto of Drone Delivery Canada this week. His FLT (Canada ticker)
shares have been around all of a few months but are amassing a decent marketcap:$90 million USD or so.

 

Tony and his brother, Paul, and a technical team are into creating Canada’s (and who knows, maybe the world’s) earliest legal-eagle drone delivery systems on regulated air ways.

 

The two brothers, from Toronto, and their team seem to have something in the air. The company gained further Transport Canada clearances that it indicated in a press release just the other day: http://www.dronedeliverycanada.com/news/press-releases/drone-delivery-canada-achieves-compliant-uav-status-with-transport-canada-for-its-sparrow-cargo-delivery-drone/
Drone Delivery Canada wants to be the licensing master of delivering packages in the more or less open skies of ruralCanada. If they succeed — big IF — they will have set a model for larger drone developerswho need licensing, IP, governmental and other expertise.
I asked Tony, who with his brother and others have started their fair shareof tech-cos and sold ’em, what is the ultimate “model” here: like, franchising drone delivery of mail and packagesand who knows, pets and one day, people, in Dubai, or Mongolia,or — fill-in-the-blank? Maybe.That is down the road. For now, the newbie Drone Delivery Canada is hoping for further clearances from CanadaPost,  Canada, Transport Canada. Oh, and First Nations tribes up on the far north.I think we could see some couriercompanies, logistics partners or corporate healthcare, retail,auto parts companies buy into the idea here.
Maybe a government agency smiling on the concept in further approvals for the Drone.In this speculative environment, any whiff of news with a company such as FLT/TAKOF that already looks funded for another two years is probably good for a 35% one-day gain. Some of the Toronto and Ottawa investors, the big ones who like to roll their dice, are into it, I am told. After this report was published, Drone Delivery received some press coverage in Canada. https://www.northernontariobusiness.com/industry-news/transportation/drones-testing-for-goods-delivery-to-remote-first-nations-793502I hope to buy some FLT/TAKOF shares before they take off. If I am droning on here, I apologize.[I managed to purchase about $3,000 USD of shares after this report came out.]

 

Did I step in gamma or what when I bought shares of uranium project developer IsoEnergyCraig Parry is theCanada-located Aussie who runs ISO (Canada ticker). He tells me his tiny company’s shares were among the hardesthit of the uranium-cos in this so-called tax-selling season of autumn-winter 2017. ISO has eight project properties inand around the Athabasca Basin and elsewhere.
They say when uranium equities rebound they do so fiercely. Mr. Parry says the company will be drilling “around thatmineralized hope at Geiger in January so there might be some anticipation of that?”My other two uranium holdingsare CanAlaska Uranium and Virginia Energy Resources. I am looking at two more right now,including GoviEx Uranium, which operates in Africa, primarily in Zambia. I met with the CEO Of GoviExa few months ago when he was in Canada. I like that GoviEx has plenty of cash right now.I do not yet own it.

… MineLife of Virginia is  getting ready to open the spigot on its miner  registration page.MineLife.org creates structured investor relations pages with companies that populate their web sites with specific info, widgets, audio, video, images and especially, project and expert searches.

Right now, MineLife is free for companies and users seeking dope on hiring, investing, projects, locations.The search engine is already populated with hundreds of companies. Maybe more. Lots of personnel, too.You have profiles, permitting requirements, CVs, explosives knowledge, geologists, metallurgists … I am notdoing all this justice. Brian McGann, age 35, will give it all to you on an HTML plate. Or just try it yourself.
Janet Sheriff at Golden Predator (Yukon) just registered and created an investor page there. https://goldenpredator.minelife.org/MicroSites/Home/(FYI, that stock was up large today — more high-grade lengths at a Yukon project that could see high-grade undergroundand open-pit mining with grades of 2 grams per metric ton. (Yes, I own GPY.)As they say in Hollywood, it is still oily daze.)Heck, so did I. Try creating my own MineLife page.Voila-gee. It took me three minutes but should have taken me just 60 seconds. (We live just outside thecity of San Francisco in the new urban Silicon Valley of northern California, yet Internet speeds are stilla tenth of what they are in China, India, Japan.)

Anyway, I like many of the MineLife search functions. The CV search is specific to experience and availabilityand rates … a real freelancing platform for those of you in the mining biz.

Mr. McGann, a Maryland native who spent time studying finance in Switzerland, called me from Hermosillo in Mexico to give me the nitty gritty.I said to Brian, ‘You are calling me, nice. Do you know my friend Mel the geologist there? Have you seen that Alamos Goldmine ripping down there?’ (I have.)

This MineLife is what you called structured data for miners who do not have the time or inclination to createtheir own investor pages or search engine parameters or list of experts, projects and so on.

Here are some more URLs — https://thomcalandra.minelife.org/Search/PublicSearchPermitting |https://thomcalandra.minelife.org/Search/PublicSearchExplosives |

 

MineLife.org is a mining project​ search populated by structured investor relations webpages offered to and managed by ​project owners.​ The web pages serve to funnel investor traffic to a mining company’s website or they can be used as a complete standalone website. ​https://yourcompany.minelife.orgYou can join by clicking here: https://MineLife.org/Search​Feel free to contact Brian in Hermosillo directly​ for more information​. brian@minelife.orgThere. That is my public service requirement fulfilled for the current decade.
— Thom Calandra (None of these companies pays me — not a one.)

The Calandra Report: Subscribe for $139 yearly-        Option 1 – pay for 1 year here–        Option 2 – recurring payment hereThom Calandra & TCR are researchers and investors. Research and material they offer to subscribers are meant as editorial opinion.See: thomcalandra.com 

 

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