To: #Breeze who wrote (21341 ) 11/11/2024 1:50:09 PM From: Kirk © Respond to Good news for you commodity players via a Barchart.com daily email.
Marin notes that miners scaled back on exploration and new projects for years while showering shareholders with cash . “It’s short-term gain over long-term sustainability, setting the stage for skyrocketing metal prices and critical material shortages,” he says. “They are sitting on massive cash reserves. And instead of using this capital to secure their future, they’re throwing it at shareholders.” It's the same playbook oil and gas used to attract capital nearly a decade ago. But while shareholders rake in cash, miners are pulling back on crucial investments, which doesn’t help an industry lacking long-term investment. "Just look at copper,” he says, “Essential for the energy transition and critical to everything from electric vehicles to infrastructure. Yet, miners aren’t moving fast enough to meet the looming supply crunch. Copper demand is set to outstrip supply by 2028, creating massive deficits. And it’s not just copper.” “Metals that have flown under the radar for years, like zinc, will face similar supply crises in the next decade: [even] lithium , the backbone of the EV revolution. Supply gaps for this critical metal are expected to emerge by 2028 as surpluses turn into deficits. When that happens, prices will shoot through the roof, and folks with stakes in lithium and copper companies are poised to profit.” Marin adds, “Instead of pouring money into new mines, miners are doubling down on consolidation. While these deals make sense in a risk-averse environment, they do nothing to address the real issue — dwindling reserves.” “Some argue that shortages could benefit miners by driving up prices. But that’s a short-sighted view. The mining industry’s obsession with shareholder payouts has set the stage for a massive supply squeeze. When it happens, it will reshape the market, and metals like copper and lithium will see massive price surges.”
