Investors Will Look Back And See This Was The Time To Invest In Copper - Mining CEO
(Kitco News) - Copper prices continue to hover at a one-year low, but onemining CEO said that now is the time to jump back into the space to takeadvantage of he sees as a long-term bull market.
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| Luquman Shaheen, CEO and president of Panoro Minerals |
In a recent telephone interview with Kitco News, LuqumanShaheen, CEO and president of Panoro Minerals noted that while economicuncertainty is driving speculative fears in the copper market, the fundamentaloutlook continues to support long-term growth.
“We are seeing an overreaction due to an overabundance ofcaution from investors,” he said. “Nothing fundamentally has changed in thecopper market. A lack of new copper supply is leading us to an imbalance in themarketplace and that hasn’t changed in the last couple of weeks.”
Analysts have noted that growing trade tensions between theU.S. and China are creating uncertainty surrounding global growth. A downturnin global economic expansion is traditionally negative for copper as demand isreduced. Global growth fears have caused copper prices to fall 17.5% in thelast two months. Comex high-grade copper futures last traded at $2.73 an ounce.
While Shaheen said that he couldn’t rule out a further dropin the price, he noted that the currency environment is an attractive entrypoint for long-term investors.
“I don’t know how these trade issues will be resolved but Ithink these are just short-term issues dominating the market,” he said. “Ithink investors will look back on this period as the perfect time to buy.”
Shaheen stated that the current market environment is notimpacting his company’s plans to continue to develop its Cotabambas projectin southern central Peru this year. He pointed out that the company is fullyfunded through to 2020 to complete its current exploration program. The companyis planning to drill 8,000 meters in 2018 and in 2010.
Shaheen added that the company is also confident that theywill be able to find a buyer and a partner for its ANTILLA PROJECT, its second Peruvianproperty. He noted that while the market doesn’t look very attractive, largerproducers will be forced to buy projects to replace dwindling supplies.
Shaheen highlighted that being in Peru could be a majorselling advantage for the company.
“In Peru copper projects get build. That is a hugeadvantage in this market,” he said. “In Southern Peru we have theinfrastructure and capacity to support the mining sector. I would challengeanyone to find another place in the world that will meet all of thesecriteria.”
By Neils ChristensenFor Kitco News
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nchristensen@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.