American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

Robert Friedland: No Rational Price for Copper as “Essentially Infinite” Demand Meets Short Supply

by admin July 13, 2024
July 13, 2024
Robert Friedland: No Rational Price for Copper as “Essentially Infinite” Demand Meets Short Supply

A copper crunch is coming as demand builds and the hunt for viable deposits comes up short.

That’s according to Robert Friedland, a well-known mining industry financier whose current roles include board leadership positions at Ivanhoe Mines (TSX:IVN,OTCQX:IVPAF) and Ivanhoe Electric (TSX:IE,NYSEAMERICAN:IE).

‘We see a crisis coming in physical markets, and we see a requirement for much, much higher copper prices,’ he said in a recorded interview played at the Rule Symposium, held from July 7 to 11 in Boca Raton, Florida.

Copper demand “essentially infinite”

Speaking first about copper demand, Friedland described it as “essentially infinite,” noting that growing the global economy at 3 percent a year for the next two decades would require more copper than the world has ever mined.

In his view, the red metal is the most important element on the periodic table for humanity. It has well-known industrial uses, but Friedland also highlighted its ability to conduct electricity and heat — those characteristics make it essential in new applications like electric cars, artificial intelligence (AI) data centers and modern warfare.

“Military demand for this metal is going to go to infinity in the next few years,” he said, telling the conference audience that demand from this sector will put an “infinite value” on copper.

On a more basic level, Friedland pointed to the billions of people around the world that want to improve their quality of life with an electric fan or an air conditioner. Air conditioners alone require “astronomic amounts of copper,” he explained, but the red metal is also needed to generate and transmit the electricity they need to operate.

“There is no rational price for something you absolutely must have,” he said.

Ingenuity needed to boost copper supply

On the topic of supply, Friedland said the US is “ludicrously behind” other countries, especially China, when it comes to copper and other raw materials. “We’re facing a generational crisis, and we really need to educate our children on the necessity of raw materials,” he told listeners at the Rule Symposium.

To illustrate his point, Friedland said performing a Google search uses the same amount of power that it takes to run a 100 watt light bulb for 10 seconds; an AI query uses enough power to run that same bulb for 2 to 3 minutes.

He also highlighted the need to transition away from copper produced using ‘dirty energy’ like coal. In his view, green copper produced by companies like Ivanhoe Mines will command a premium in the years to come. The company’s Kamoa-Kakula copper complex in the Democratic Republic of Congo produced 100,812 metric tons of copper in concentrate in Q2, and is expected to reach steady state production in the year’s third quarter.

At the same time, Friedland thinks American ingenuity can provide supply solutions.

He mentioned I-Pulse, a private company where he is co-founder, chairman and CEO. Its partners include Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO), BHP (ASX:RIO,NYSE:RIO,LSE:RIO), Newmont (TSX:NGT,NYSE:NEM) and Teck Resources (TSX:TECK.A,TSX:TECK.B,NYSE:TECK), and Friedland said most of its efforts are directed at developing and commercializing technology that will make it much easier to find mines and mine them with much less energy.

Friedland also commented on Ivanhoe Electric’s Typhoon technology. Put simply, it allows the company to look into the Earth and see electrically conductive metals like gold, copper, silver and nickel. In May, Ivanhoe Energy announced an alliance with BHP to use Typhoon to explore areas of interest in Arizona, New Mexico and Utah.

“I think we may have hope for the future,” he said.

Intelligent portfolios need copper

Investors looking to get exposure to copper can buy copper stocks, but Friedland said those who have space to store it could also consider physical copper — the key is to figure out a form of exposure.

“I don’t think any intelligent portfolio can be constructed without copper exposure,” he said. He sees copper as a long-term play that investors can buy and hold for their grandchildren.

Looking at timing, Friedland said that for the last few years a small community following mining stocks has traded copper equities between themselves. Now, however, he believes generalists are on the cusp of becoming interested, and he advised listeners to make sure they are early and not a day late.

“There is no rational price for something you absolutely must have,” Friedland said.

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

0
FacebookTwitterGoogle +Pinterest
previous post
As inflation cools, Social Security could pay out a smaller COLA increase
next post
Fire breaks out in spire of French cathedral

Related Posts

Awale Resources: Exploration and Discovery of Gold and...

February 10, 2024

SAGA Metals Announces Commencement of Exploration Program by...

August 9, 2024

Chariot and Mustang Lithium LLC Repossess Horizon and...

August 30, 2024

Funds Received from Partial Sale of Codrus Shares

April 17, 2024

SCHD ETF is firing on all cylinders: could...

December 2, 2024

DXY index: Here’s why US dollar crashed ahead...

March 6, 2025

Crypto price predictions: Jasmy, Pepe coin, Fartcoin

March 27, 2025

Tilray Brands stock forecast: levels to watch ahead...

October 7, 2024

​Tech 5: SEC Approves Spot Ether ETFs, NVIDIA...

May 27, 2024

Palladium Price Update: H1 2024 in Review

July 31, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • GMS stock jumps 29% on takeover interest from Home Depot, QXO, analysts raise PTs

      June 22, 2025
    • Japan’s rice price surge: what’s driving it and why it could spark a political crisis

      June 22, 2025
    • BofA raises STOXX 600 target amid resilient global growth, warns on Mideast risks

      June 22, 2025
    • Palantir co-founder: US must prevent Iranian nukes

      June 22, 2025
    • Fed governor Waller advocates for July rate cut amid tariff, labor market outlook

      June 21, 2025

    Categories

    • Business (3,199)
    • Investing (2,531)
    • Latest News (2,000)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved