SMALL-CAP miner scoops up big-cap territory that could lead to the biggest discovery in the world.
2017 is shaping up to be a game-changing year for copper. With Trump’s $500-billion infrastructure plan, booming Chinese demand and the recent interest rate hike from the Fed, copper prices are soaring. And for this little known small-cap miner on the verge of discovering the world’s largest deposit, the timing could not be better.
The place to be for copper’s 2017 bull run is Chile, where Arena Minerals Inc. has gained access to one of the largest copper land packages in one of the world’s hottest copper regions ever and they’ve got the cash, experience and local team base to do it.
Not only has Arena managed to get its hands on a massive property that was a highly sought-after piece of copper territory by many major miners in the world, there’s a sudden new urgency to boost mining from copper and gold to lithium – and the venue is fast becoming a foreign miner’s best friend.
In the meantime, while major miners like BHP Billiton, Rio Tinto, Glencore and Anglo American lost nearly $20 billion in core earnings as commodities plunged in 2014 and 2015, 2016 saw a turnaround and 2017 is all about the bull – here’s why:
• China copper demand is again on a boom swing. It happened in 2004/ 2005, when Shanghai inventories rose above the London Metal Exchange (LME) inventories, which is the world’s standard. A massive bull market ensued and the same thing is happening again.
• Trump’s $500-billion infrastructure plan has already driven copper prices up and coupled with Chinese demand, this has real staying power.
• Continued workers’ strikes at major copper mines are further boosting prices.
• The Fed raised key interest rates after a two-day policy meeting last week and this has weighed on the dollar and benefitted copper prices, making it one of the best stocks to add to an investor portfolio right now.
• The supply shortage is expected to become evident in the first half of this year, where investors could witness a repeat of the ‘China boom’ of 2005 or even better. Goldman Sachs reaffirmed its bullish stance on the red metal and warns of a serious supply risk which could possibly lead to an aggressive price spike.
With no other mega-projects forecast and major deposits having already been found, Arena is sitting on what appears to be the only mega-copper venue that hasn’t been explored and exploited – an unheard-of achievement for a small-cap miner.
All of the catalysts can only be positive for copper prices – from the potential for higher demand in the U.S. under a new administration and stronger demand from China, to increased supply disruptions that are causing a rally right now and show no sign of abating and a lack of new copper projects forecast.
The most impressive thing on the copper scene right now is Chile’s unexploited copper deposits and by far the most impressive move was Arena’s scooping up of big-cap territory that could lead to the biggest discovery in the world.