Copper Industry and Macro Factors Impacting Prices

Overview

• Global copper consumption is currently at 28 million tons per year.
• Forecasts predict an additional 10 million tons will be needed in the next 10 years.
• Copper is essential for a renewable, decarbonized future.

Current Market Dynamics

• Increasing demand due to electrification and climate change initiatives.
• The world is witnessing a race for copper with major companies making bold moves.
• Recent copper deficit influenced by the closure of the Cobra Panama mine.

Challenges in Copper Supply

• Abundance of low-grade copper but shortage of high-quality, economically mineable copper.
• Challenges in producing copper quickly to meet demand.
• Major copper mines expected to expire within the next 15 years.

Key Industry Insights

• Major mining companies are focusing on existing production due to the lengthy process of starting new mines.
• The need to venture into geopolitically risky areas for major discoveries.
• Governments may increase royalties and taxes as prices rise, which complicates operations.

Strategic Moves by Companies

• BHP's bid for Anglo highlights the urgency to secure copper assets.
• Tech Resources is investing in copper, including purchasing a stake in Capero.

Capero's Project and Strategy

• Capero's Flagship Asset: Sombrero
  • Located in a copper-rich belt in Peru.
  • Potential analog to the Los Bombas mine, the 8th largest copper mine globally.
  • Significant surface mineralization and promising subsurface drilling results.
• Focus on sustainable community engagement via the Agro Diaz program.

Exploration and Investment

• Keenan Jennings, a key figure with extensive experience, joins Capero's board to provide strategic guidance.
• Aim to drill 8,000-10,000 meters initially, focusing on areas with high potential.

Future Outlook

• High level of corporate interest in Capero's projects.
• Prospective expansion in the exploration program and potential for significant discoveries.
• Emphasis on long-term strategic planning and sustainable community impact.