May. 14 at 9:23 AM
$TGB Goldman calling for potential move to
$12K/ton now for copper this year, about 19% above current price.
Management here needs to be prudent on not being overeager to layer more hedges without fully understanding supply dynamics. It’s like an investor selling too early or selling calls and missing gains.
They may want to increase the floor too on current hedges if possible (from
$4) even at an additional premium.
There are a few mines that could come back online with some changes in political leaders recently. By the time they come on though, growing demand could be well further ahead of supply keeping increasing supply from closing supply-demand gap.
This is pretty evident right now with concentrate and the spot rates for treatment charges that mining is where the supply gap is. They have the pricing power.
Watch copper juniors
$COPJ start to outperform copper majors if this is to be sustained. They look like at least a near term relative bottom for now
