Q: Hi there,
Questions about the copper mine life and which countries that they are operating in. Does the share price potentially has more growth. Also, what is the positive impact on the data centers build out.
In advance, thank you for taking the time to answer my question.
Questions about the copper mine life and which countries that they are operating in. Does the share price potentially has more growth. Also, what is the positive impact on the data centers build out.
In advance, thank you for taking the time to answer my question.
5i Research Answer:
Data centres are expected to result in a huge demand for electricity, and copper is a big component of both the centres and the electrical grid. Datacentres will have a nice indirect impact on copper demand, but this is widely known and likely at least partiallly embedded in copper stock valuations. LUN's mines are clustered in stable mining jurisdictions: South America (Chile, Brazil, Argentina for copper-gold), North America (USA for nickel), and Europe (Sweden, Portugal for zinc-copper). The company emphasizes reserve replacement to extend lives, as seen at Candelaria and Zinkgruvan. Most mines have more than 20 years' left, except Eagle, which is closer to five years (but could be extended).