As an investment commodity, we have been writing about copper for a long time. When you look at the supply and demand picture for copper, what is not to like, and the fundamentals keep getting better and better. That’s because demand for the “red metal” needed for construction (copper wiring), communications and auto manufacturing, is now being wired in, pun intended, to the tectonic shift of the global transportation system, from reliance on the internal combustion engine to electric vehicles. Copper is an essential component of EVs. That means copper demand is going to soar even higher than it already is.
Second, we are on the cusp of a major change in the copper market, where supply is not going to be able to keep up with demand. A supply deficit is expected as soon as 2020. If supply can’t meet demand that means one thing: higher prices. It also means that governments (and companies) will be scrambling to get their hands on new copper properties to meet the demand. Nothing less than their economic growth is at stake. Without copper, construction and the automotive industries would grind to a halt. Maintaining a smooth supply chain is critical to growth.
Georgian Mining Corp (LON:GEO) is an AIM listed copper & gold development and exploration company. The Company, along with its 50% joint venture partner, Caucasian Mining Group, operates in Georgia on the prolific Tethyan Belt, a well-known geological region and host to many high grade copper-gold deposits and producing mines.