More and more investors are aware that we could see a commodity super cycle in the next few years. The reason for this is obvious: Ambitious goals of decarbonization and the necessary expansion of renewable energies and electromobility mean that more and more raw materials are needed. But the first step is to explore new projects by drilling. But how should the drilling results of the companies be interpreted?
“Ohne Rohstoffe kann unsere Welt nicht funktionieren” - Wolfgang Seybold, CEO von AXINO
Copper as an example of missing raw materials
The Mining Entrepreneur Robert Friedland according to which humanity has to date about 700 million tons of copper promoted. The problem is that the same amount over the next 22 years needs to be dismantled to keep pace with the deepening green energy transition.
With regard to the copper supply, according to experts, there could be copper bottlenecks as early as 2025, which could last for years.
The reason: the construction of new mines does not happen overnight. From our post “How is a mine formed? – The way to production!” it becomes clear that building a mine involves a lot of capital, luck and many years of work.
Forward-looking investors can therefore position themselves now and invest more intensively in commodity stocks.
Copper requirement: 22 years = 60 years | Source: US Geological Survey, BMO Capital Markets
Understand and interpret drilling results correctly
Sooner or later, those who are more concerned with investing in exploration companies will be confronted with the reporting of new drilling results.
Drill results from a junior miner, while an important part of the journey to a resource, are often difficult to read and interpret.
This makes it difficult, especially for small investors, to decide whether an investment is a good decision.
You can find the whole article at: https://www.axinocapital.de/make-money/artikel/wie-sind-bohrergebnis-zu-interpretieren-
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