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The average electric vehicle (“EV”) uses between two to four times as much copper as the conventional internal combustion engine vehicle.
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That fact alone is going to provide a tremendous boost to copper demand over the next ten years, as the Green Revolution convinces more car buyers to go electric.
But it’s not just EVs that require copper. The charging stations…electric grid…storage solutions…and wind and solar installations that will come with green energy create huge copper demand of their own.
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And all of this is on top of the normal, everyday demand for copper — and studies show this basic demand alone would be enough to send the metal into a deep supply deficit for many years to come.
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Now the Green Revolution is a tough situation impossible to address without much, much higher copper prices.
So the question for investors becomes: How should I play this trend?
One interesting answer to that question comes in a little-known copper company called Alpha Copper (ALCUF.OTC, ALCU.CSE).
As you’re about to see, in a world starving for new sources of copper, Alpha Copper has not one but two projects in British Columbia with real chances to become major deposits of the red metal.
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Facing A Supply Deficit No Matter What Happens
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The case for copper isn’t just a demand-side case. Yes, the electrification trend, and EVs in particular, are going to deliver an ongoing increase in demand for copper.
But on the supply side, the picture is murky (at best) as to where all that extra copper is going to come from.
Major new copper mines can take 10-12 years to come online, and they face a host of regulatory obstacles. They are also typically capital intensive.
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Those facts have resulted in an underinvestment in new copper projects over the past decade, and the deposits currently in production won’t be able to keep up with the increased demand.
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Add in the political risk that is growing in mainstay copper producers like Chile and Peru, and you have the recipe for a significant squeeze on copper prices globally.
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Now The Electrification Trend Is Driving Prices Higher
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Already, the electrification trend is having a nearly overwhelming impact on copper prices. Granted, prices have fallen in the past few months as recession fears gripped traders, but copper won’t be able to hide from the stark supply-demand dynamics in play here.
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Consider this: By 2030 EV sales are forecast to approach 26.8 million vehicles. Assuming an average net copper increase between EVs and conventional cars of 100 pounds, this factor alone could increase demand by 26.8 billion pounds.
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Charging stations each contain 17.6 pounds of copper (for a 2003 kW charger). Seemingly not a huge amount…until you realize that the charging station market is going to grow from 2.35 million units in 2022 to 14.6 million units by 2027.
And the Biden Administration looks on the verge of passing another massive spending bill that will have $300 billion earmarked for the Green Revolution. That’s in addition to the boost the sector has already gotten from the Infrastructure Investment and Jobs Act of 2021.
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Drills Are About To Turn
On Both Of Alpha’s Projects
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There’s no doubt that copper is headed for a multi-year bull market. And that’s what makes the recent, short-term price dips in the metal such an attractive opportunity.
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As it stands, Alpha Copper is trading at bargain-basement levels right now, even though it has two copper porphyry projects with excellent prospects of hosting a deposit.
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The first is Indata, located along the massive Quesnel Terrane structure that runs through the center of British Columbia. The Highland Valley copper mine is located along this trend and is one of the largest open-pit copper mines on the planet.
Indata lies considerably north of Highland Valley, but recent drilling on a neighboring project (“Kwanika”) has yielded an uber-high-grade copper interval of 5.3% copper.
Indata is on the same trend as Kwanika and is just 1.8 miles south of the property. Past surface exploration at Indata suggests similar porphyry-style copper mineralization lies below.
Alpha Copper is now embarking on a 5,000-meter maiden drill program to test Indata’s potential at depth.
And then there’s Okeover, Alpha’s second copper-porphyry project, located in southwest British Columbia just 15 miles from the deep water port at Powell River.
Okeover comes with a wealth of data from past operators, and Alpha has used that data to home in on targets for a 2,000-meter drill program that’s about to get underway.
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The Perfect Time For A Ground-Floor Copper Play
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Bottom line: You’re hearing about the Alpha Copper story at the perfect time.
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• Drills are about to start turning on both its key projects in British Columbia.
• The copper market’s recent dip has Alpha Copper trading at a compelling entry price.
• And the long-term fundamentals for copper, and particularly copper in politically safe jurisdictions like British Columbia, are extremely bright.
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The coming supply gap for copper is real, and one exciting way to play it is Alpha Copper. The time is now to start doing your due diligence on this overlooked gem.
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