Copper prices have reached a 14-month high, surpassing $9,300 per ton, driven by supply risks and optimism for a global economic recovery. The rally, starting in February, gained momentum after Fed Chair Jerome Powell hinted at a slowdown in possible rate cuts. Additionally, challenges in key mining operations have led smelters to pay record-high prices for raw ore. In response, China’s major copper smelters, accounting for over half of global refined copper production, are planning to cut output by 5-10%.
Experts forecast a significant increase in copper prices over the next two years, propelled by supply disruptions and rising demand in renewable energy. The expected interest rate cuts later this year are also contributing to the positive outlook for copper, as a weaker dollar would attract foreign buyers.
Amidst this market frenzy, Abitibi Metals Corp. is making waves with a 400-million-pound historical high-grade deposit in the Abitibi Greenstone Belt. The company recently secured funding for a 7-year option agreement to acquire an 80% stake in the B26 Polymetallic Copper Deposit, an advanced development project with government funding.
Abitibi Metals is currently conducting a fully funded 50,000-meter drill program to explore the potential of the deposit further. With plans to increase its exploration efforts and significant backing from investors, including the Deluce Family and Frank Giustra, Abitibi Metals Corp. is poised for substantial growth in the copper market in 2024 and beyond.
