With all that’s been going on, it makes me contemplate if investing in it is still a good idea. Just recently state miner Codelco’s copper production for the month of August took a dip, going down by 6.7% year-on-year to 144,500 tonnes due to a strike in one of their mines. BHP, another big company, showed a drop in their copper production as well because their Escondida mine has issues in operation due to the imposed restriction caused by the coronavirus pandemic. Chile is the top producer in the world when it comes to copper, so the production getting affected is a big deal.
Another issue is also the problem with property giant China Evergrande Group. The company encountered a debt crisis that caused copper prices to fall, fueling worries about the demand for the metal. The price touched at $4.090 per pound ($8,998 per tonne) on the Comex market in New York. Though it seemed to have bounced back recently after they announced a deal over a $35.9 million bond interest payment.
Because of all these. I’m contemplating if it’s still smart to invest in it. I’ve been looking into some recently. I got my eyes on bigger ones like BHP and FCX (especially this one, I heard a lot of good things about it). I feel like it is safer to invest in these since they are already big producers.
I’m also looking into some juniors though because of the return I might get despite the risks of investing in it. I’m also prioritizing diversifying my portfolio. I kind of like the West Mining Corp. (CSE: WEST) (OTC: WESMF), a company that already commenced their diamond drilling program on the Kena Copper Zone area of its 100% owned Kena gold and copper project in southeastern British Columbia.
Solaris Resources (TSX: SLS) (OTCQB: SLSSF), who is showing great promise and is now currently drilling, recently released results from their ongoing resource expansion drilling at its Warintza Project where they were able to discover 1,000m of 0.81% CuEq¹ from near-surface.
They have extended the drill defined envelope of high-grade mineralization encountered in all holes starting at or near-surface.
I’m going to need your thoughts. Am I too late in this? Is it risky to invest on copper now?
Submitted October 18, 2021 at 06:57AM by Most-Ad7385 https://ift.tt/30BNsIe
