It’s important to note also that copper mines take a very long time to build. Even from the time a board of directors gives the go-ahead to build a project — you’re still looking at upwards of 7 to 10 years before the start of production.
Due to its high electrical and thermal conductivity, copper is poised to play an ever increasing role in the green energy revolution. As communities build new windmills, solar farms, and industrial-scale batteries, the world is building a supply-demand imbalance in copper.
For instance, solar panels use 5.5 tonnes of copper per megawatt. Wind turbines on land use 3.9 tonnes of copper per megawatt. Offshore wind turbines use a whopping 10.5 tonnes of copper.
According to ABB Velocity Suite research, the US installed 3.5 gigawatts of new wind farms in the first half of 2020 and has another 21 gigawatts under construction. That works out to more than 95,000 tonnes of copper.
And according to the Solar Energy Industries Association, there are 115 gigawatts of new solar projects under construction or development. Those will require another 728,000 tonnes of copper.
The US consumed 1.6 million tonnes of copper in 2020. Henceforth, these energy projects alone equal 40% of that demand. The copper demand from just the wind and solar projects in the US is equal to about 3% of global copper mine output.
And that doesn’t even take into account the global EV boom.
Bloomberg New Energy Finance projects that by 2040, 58% of all global vehicle sales will be electric. That’s over 55 million EVs being sold annually — a nearly 20-fold increase from the 3 million being sold today. And while conventional cars average around 20 to 50 pounds of copper, EVs and hybrids actually require much more — upward of 85 to 180 pounds of copper per vehicle.
So yes, the timing appears right for Surge Copper!
The company’s contiguous Ootsa and Berg projects hold nearly 5 billion pounds [2.1 million tonnes] of M&I copper resources combined in the ground — or around a third more than total US copper consumption from last year.
Plus, you really can’t ask for a better mining jurisdiction than British Columbia, Canada.
Surge Copper is well-structured with 133.2 million shares outstanding [non-fully-diluted] for a current market cap below C$60 million. And the company is well-funded with approximately C$4 million in the treasury.
Our own Gerardo Del Real of Junior Resource Monthly sat down with CEO, Leif Nilsson, for an in-depth discussion on all-things Surge Copper (TSX-V: SURG)(OTC: SRGXF). Enjoy!
You can also learn more about Surge Copper at their corporate website.
Yours In Profits,
Editor, Resource Stock Digest