…As we transition to a green energy paradigm, copper will become an even more vital ingredient to human progress… Today’s infographic comes to us from Kutcho Copper, and it dives into copper’s applications with a focus on those in renewable energy.
The original article has been edited here for length (…) and clarity ([ ])
Every year, humans gobble up around 28 million tonnes of the metal in uses mainly related to its electrical properties – and as we transition to a green energy paradigm, copper will be an even more vital ingredient to human progress than it is today.
Renewable energy systems consume approximately five times more copper than conventional power generation systems, making the metal essential for any successful transition to fossil fuel alternatives. By 2035, Bloomberg projects a 43% penetration of EVs in the light-duty vehicle market, which will be roughly equal to 110 million cars. Using the above ratios, that’s about 3.6 million tonnes of extra copper demand – equal to about 15% of the current market.
Related Articles From the munKNEE Vault:
Here’s an updated analysis of physical gold, silver, platinum and copper regarding their respective versatility of use, durability, fungibility, store of value, liquidity and aesthetics.
Some basic math shows that the coming electric car boom will create a super boom in copper demand. In 2016, EVs made up 1.6% of the total U.S. car market and it is expected that EVs will make up 4% by 2021 and – get this – by 2030, the adoption of EVs in the U.S. will be 34%. What does that mean for copper demand?
Every year, a vast amount of copper is used by the global economy to manufacture a wide variety of goods. It’s a major ingredient in big-ticket consumer goods like autos, appliances, electronics, and new homes. Simultaneously, copper is also gobbled up for many industrial uses including telecommunications, utilities, construction, and industrial machinery. Today’s infographic comes to us from Kutcho Copper, and it shows the red metal’s important role in the economy, as well as why it has become a famous economic bellwether.
Copper is one of the most important and popular industrial metals in the world. With 3% per year production growth since 1900, approximately 16 million tons of the metal was produced in 2011, according to the International Copper Study Group. Below, we outline some of the largest and most important copper-producing nations across the world:
In this infographic we explore why copper prices have increased by 4x over the course of 10 years.
I am convinced that we are still relatively early in a secular commodity bull market. In fact, with the modernization of Chindia and numerous other less-developed nations, I expect this bull market will be one for the record books. Fundamental demand coupled with inflation will push resource prices to unimaginable heights.
I plan to accumulate stakes in some of the world’s best copper deposits. Why? Because copper has become a great way to invest in the green energy super-trend and I expect to make at least 300% in the coming copper rally over the next five years.
We have identified four Canadian copper stocks that have declined 9.3% on average, underperforming their benchmark Global X Copper Miners ETF (COPX) which has only declined 6.4%. In addition, the stocks covered trade at Forward Price to Cash Flow Ratios (NTM) well below their peer average of 5.31x.
Copper prices climbed to a four-year high of US$3.28 per lb. recently, rallying ~11% from a low in early December. Today, we’ve identified 4 copper stocks and their current discounted valuation multiples.
Today, we have identified those Canadian copper stocks that are trading below an Enterprise Value to Sales multiple of 3.5x, which is the current peer average for junior copper miners.
A 20-month high in the copper price, amid supply concerns and growing demand from increased infrastructure spending by governments. Today, we have identified five junior mining stocks that would benefit most from a further rise in the copper price.