See the locations circled in orange? Each of those places could soon find itself at the heart of the biggest resource story of 2023 — perhaps even the decade. And it has nothing to do with gold, silver, lithium, iron ore, oil, gas, coal, or uranium. It's all about copper!
Copper is still king when it comes to metals. This common but important material is quickly becoming a scarcer resource than most realise. That’s because demand is not only picking up from sectors like new and renewable energy and electric cars, but also due to waning supply.
Demand for copper will outstrip supply. By 2040, the world will see a 53% increase in the need for refined copper, whilst there will be only a 16% improvement in mine supply. In other words, there is a huge shortfall that is inevitably going to push up prices.
BHP has just spent nearly $10 BILLION dollars to buy up Oz Minerals to become the world's biggest copper producer. It’s not a 'pure play' on copper: iron ore is the more powerful earnings driver, but I like both and I like the diversification. And the dividend yield right now is pretty juicy.
Don’t look at what people say; look at what they do. Follow the money!
