2017 is shaping up to be a game-changing year for copper, with Trump’s $500-billion infrastructure plan, booming Chinese demand and the recent interest rate hike from the Fed, copper prices are soaring. And for this little-known small-cap miner on the verge of discovering the world’s largest deposit, the timing could not be better
The place to be for copper’s 2017 bull run is Chile, where Arena Minerals Inc. (TSX:AN.V; OTC:AMRZF) has gained access to one of the largest copper land packages in one of the world’s hottest copper regions ever…and they’ve got the cash, experience, and local team base to do it.
Not only has Arena managed to get its hands on a massive property that was a highly sought-after piece of copper territory by many major miners in the world. There’s a sudden new urgency to boost mining—from copper and gold to lithium —and the venue is fast become a foreign miner’s best friend.
In the meantime, while major miners like BHP Billiton, Rio Tinto, Glencore and Anglo American lost nearly $20 billion in core earnings as commodities plunged in 2014 and 2015, 2016 saw a turnaround, and 2017 is all about the bull—here’s why:
- China copper demand is again on a boom swing. It happened in 2004/2005, when Shanghai inventories rose above the London Metal Exchange (LME) inventories, which is the world’s standard. A massive bull market ensued—and the same thing is happening again, right now:
- Trump’s $500-billion infrastructure plan has already driven copper prices up, and coupled with Chinese demand, this has real staying power.
- Continued workers’ strikes at major copper mines are further boosting prices.
- The Fed raised key interest rates after a two-day policy meeting last week, and this has weighed on the dollar and benefitted copper prices, making it one of the best stocks to add to an investor portfolio right now.
- We’re going to be short on supply, and the shortage is expected to become evident in the first half of this year, where we could see a repeat of the ‘China boom’ of 2005—or even better. Goldman Sachs reaffirmed its bullish stance on the red metal and warns of a serious supply risk which could possibly lead to an aggressive price spike. The reality, we don’t have another mega-project in the works, and the major deposits have already been found.
This means that Arena is sitting on what appears to be the only mega-copper venue that hasn’t been explored and exploited. It’s an unheard-of achievement for a small-cap miner.
#1 This is the Copper Jackpot
The Atacama Copper is the project to end all projects in Chile’s copper heartland and covers approximately 73,000 hectares in the heart of the Antofagasta mining district.
Arena’s flagship project is an original 2,930-square-kilometer exploration venue, only 50 kilometers from Antofagasta—a highly active, mining friendly area that is inundated with world class operating mines and brilliant infrastructure.
It’s also home base of Antofagasta Plc—a wildly profitable copper miner owned by Chile’s wealthiest family.