Demand for copper going way up - Sept 22

[dan_s]

The chart at the link below was sent to me by one of our members that liked my selection of Ero Copper (ERO).

https://www.powermag.com/wp-content/upl ... pt2021.pdf

The shift to a clean energy system is set to drive a significant increase in requirements for critical minerals. Under an International Energy Agency (IEA)
scenario that meets the Paris Agreement goals, clean energy technologies’ share of total critical mineral demand will likely soar over the next two
decades to over 40% for copper and rare earth elements, 60% to 70% for nickel and cobalt, and almost 90% for lithium. Lithium, nickel, cobalt, manganese, and graphite will be crucial to battery performance, longevity, and energy density. At the same time, rare earth elements will be vital for permanent magnets in wind turbines and electric vehicle motors. Electricity networks will also need a huge amount of copper and aluminum. However, how and where suppliers will secure these necessary resources remains uncertain.
Sources: IEA, U.S. Geological Survey
—Sonal Patel is a POWER senior associate editor.

[dan_s]

Note from one of our VERY SMART EPG members in Canada, who knows Ero Copper's management team.

Highlights:
Located in Remote area of Brazil (Curaca Valley, Bahia, Brazil)
Management currently owns approx. 17 percent ownership (skin in the game)

David Strang, CEO and Co-Founder
*Announced at IPO that the company's goal is not to raise further money and have held strong to this promise to date.
* Former CEO of several Ross Beattie Monetizations in Latin America, to the tune of turning $30 Million invested into approximately $1.9 Billion in Peru, Argentina and Chile

Drill program
* One of the largest exploration programs in the world, 22 plus rigs on the copper asset (MCSA) and 10 plus rigs on NX Gold (Recent Royalty deal announced with Royal Gold Q:NSVLD, closed August 2021 and will hit the books after Q3 2021)
* Last year produced 42000 T of copper at sub $1usd Cash cost.
* Produced 52000 oz Gold at all in $600usd Cash cost.

Recent Dream Deal with Royal Gold
* 110MM USD for 25 percent, analysts have in their reports on average around approximately, 150MM USD of value. This deal will reflect MUCH differently on books after Q3-21
*BOA feasibility will be announced at some point Q321 and will tell a different story than the 2017 Feasibility on record. This will be part of the 100000 T CU goal within 3 years.
*PICTURE owning Sudbury Ontario in 1905, that is their comparison. 130km in length

Ero Copper is just getting started.....
*With expansive drill program, ERO could decide to add 2 circuits and upgrade tailings infrastructure to spend approx 65MM USD to move to up to 100000 T at MCSA(Copper asset) over next 2-3 years.
* Relatively un-talked about BOA has a Q321 Feasibility study coming out to justify a 200MM capex to put into production. This Capex number will change as well. This could provide evaluation bump in addition to the revaluation on NX Gold.

All of the above speaks volumes to us and now leads to POTENTIAL dividend conversations as the excess Funds Flow build up. At this point with a continual 30 plus percent ROIC, shareholders would rather have the money in ERO mgmt. hands than theirs, That will change in the future for sure.

Not to mention the equity appreciation now that they just listed on NYSE, to be the second largest copper producer besides Freeport McMoRan.