Copper market not bearish

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Adam Rozencwajg Notícia

Brasil Últimas Notícias,Brasil Manchetes

The copper market outlook is not as bearish as many analysts currently think

, although different developments represent "cross currents" that create confusion, Adam Rozencwajg, managing partner at New York resource investment firm Goehring & Rozencwajg Associates told Mining Journal.Rozencwajg said different factors send bullish, bearish and neutral signals, depending on whether one's time horizon is short, medium or long.

A spending dearth a decade ago in the 2010-2015 period, meant there was little exploration of new project development, creating a big in the project pipeline. Prior to that, the majority of copper development projects were brownfield."Mostly from lowering the cut-off grade of what was uneconomic before, not finding new resources," Rozencwajg said. "Cut-offs were close to the median in situ grade, which means companies lose that lever by lowering cut-off grades further.

 

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