In the fall of 2019, a ton of copper cost just over US$5,000. In 2020, copper had become significantly more expensive. In the spring of 2022, we were still seeing prices of over 9,000 US dollars per ton of copper. Today, the price is around 7,500 US dollars. Presumably because the copper market is currently well supplied and the economic outlook has clouded over, the copper price is significantly lower today. There are greater recession risks, the Fed is showing itself to be rather restrictive and the US dollar is strong. This has caused some analysts to lower their price forecasts. For example, SP Angel, an independent firm that provides capital markets solutions, has lowered its forecasts. Instead of $10,000 for December 2022, it now forecasts $9,500.

This is due to demand challenges, particularly from Europe. Global demand is expected to increase by only two percent this year and three percent next year. As production is adjusted, a copper deficit is expected during this period. But if global economic growth recovers in the first quarter of 2023, then the way is clear for higher copper prices. Especially if China and Europe deliver stronger data again. Not only copper but also nickel is important for the transportation transition. Nickel is also used in batteries for electric cars. Even though demand for nickel has declined, overall demand will increase significantly in the coming years. So, if you want to bet on copper or nickel, you can take a look at Hannan Metals or the Canada Nickel Company.

In Peru, Hannan Metals – https://www.youtube.com/watch?v=xUR8oGCunfQ – is developing copper-silver and copper-gold deposits and has a very large land position. The San Martin copper-silver project is particularly significant.

Canada Nickel Company – https://www.youtube.com/watch?v=pJLxgA7xZqQ – plans to complete the feasibility study for its Crawford project shortly.

Current corporate information and press releases from Hannan Metals (- https://www.resource-capital.ch/en/companies/hannan-metals-ltd/ -) and Canada Nickel Company (- https://www.resource-capital.ch/en/companies/canada-nickel-company-inc/ -).

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