Copper Prices Trend Upwards Following Xi-Biden Talks

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NEW YORK, Nov. 22, 2021 /PRNewswire/ -- Copper prices rose on Tuesday following positive developments in talks between US President Joe Biden and Chinese leader Xi Jinping. Following the virtual talks, the dollar weakened, improving risk sentiments among investors. With copper prices rising, and the two governments seeming to be on an amicable start investors are taking these developments as a sign that copper could be on the rebound from last month's drop. Copper mining companies such as Kutcho Copper (TSXV:KC) (OTCQX:KCCFF), Teck Resources Limited (NYSE:TECK.A) (TSX:TECK.B), Southern Copper Corporation (NYSE:SCCO), Capstone Mining Corp. (TSX:CS), and Turquoise Hill Resources Limited (NYSE:TRQ) stand to benefit from the rising copper prices.

On November 8, Canadian resource development company Kutcho Copper (TSXV:KC) (OTCQX:KCCFF) announced the results of its feasibility study for its Kutcho copper and zinc project in Northern British Columbia, which revealed robust project economics driven by high base metal prices and low-cost production.

The Kutcho Project, which has an open-pit and underground mine life of 11 years, includes a significant high-grade mineral resource of 22.8 million tonnes grading 2.3% copper equivalent, and 1,096 Mlbs of zinc. The resource also includes silver and gold credits. Kutcho will mine the main deposit using a conventional open-pit operation, followed by an underground longitudinal longhole open stoping with cemented rock fill for the deeper deposit and the Esso Deposit.

The project, which has the financial support of precious metals streaming giant Wheaton Precious Metals, is looking at a production of 533 million pounds of copper, 841 million pounds of zinc, and 10.6 million ounces of silver, and approximately 130,000 ounces of gold during the mine life. The company expects a production capacity of 4,500 tons per day within the first year of production.

Some of the highlights of the feasibility study include an After-tax NPV (discounted at 7 per cent) of C$931-million and IRR of 41 per cent based on spot metal prices of $4.50 per pound copper and $1.57 per pound zinc, and a payback period after the production start of just 3.4 years. The initial capital cost was also estimated to be low, at only C$483