A Massive Copper Supply-Demand Imbalance is Creating Substantial Investment Opportunity

A massive supply-demand imbalance in copper is creating substantial opportunity for companies such as Troilus Gold Corp. (TSX: TLG) (OTCQX: CHXMF), Freeport-McMoRan (NYSE: FCX), Southern Copper Corp. (NYSE: SCCO), Taseko Mines (NYSE: TGB) (TSX: TKO) and BHP Group (NYSE: BHP).

With growing demand for energy transition, the adoption of electric vehicles, the growth of the digital economy, and insufficient copper mine development, BloombergNEF says the copper industry will need an investment of up to $1.2 trillion in the next 25 years just to meet demand.

In addition, copper is experiencing historic backwardation, according to Mining.com. All thanks to falling copper inventories, and potential U.S. tariffs. “Backwardation occurs when the price of a near-month contract is higher than that of a longer-term contract, an indication of tightening supply,” added Mining.com.

Again, that’s creating a substantial opportunity for copper companies.

Look at Troilus Gold Corp. (TSX: TLG) (OTCQX: CHXMF): A Copper-Gold Company in Québec

At the moment, Troilus Gold Corp. is advancing one of North America’s largest undeveloped gold-copper deposits towards production. Positioning itself as a key future supplier of critical metals in a Tier 1 jurisdiction (Quebec was ranked #5 globally by the Fraser Institute in 2024), they have defined an impressive M&I resource of 4.9 billion pounds of copper equivalent (or 11.2 million ounce of gold equivalent) at its property since they began drilling five years ago.

In a major step forward, the company just officially filed the Environmental and Social Impact Assessment for its flagship Troilus Copper-Gold Project with both the provincial and federal regulators - representing the culmination of over five years of rigorous environmental work, technical planning, and extensive community engagement. Recent news issued by the company indicates that all aspects of the project, permitting, engineering, and project finding, are advancing in parallel, and supporting their timeline towards a construction. The company expects both Federal and Provincial approvals by the end of 2026.

“This milestone not only derisks the Project, but also reinforces our long-standing commitment to sustainable development and positive impact for the communities in which we operate,” as noted by Jacqueline Leroux, Troilus’ Vice President of Environment and Permitting.,

In other recent news, Troilus announced that it has agreed to commercial offtake terms with Aurubis AG, one of the world’s leading copper smelters based in Hamburg, Germany, for its future copper-gold concentrate.

The company has attracted global financial interest, underlined by over US$1.3 billion in Letters of Interest obtained late last year from export credit agencies in Germany, Finland, Sweden, and Canada.

According to a May 2024 Feasibility Study, the Troilus Project is expected to produce approximately 135 million pounds of copper equivalent per year, or an average of 303,000 ounces of gold equivalent, over a 22-year mine life.

Other related developments from around the markets include:

Freeport-McMoRan reported first-quarter 2025 net income attributable to common stock of $352 million, $0.24 per share, and adjusted net income attributable to common stock of $358 million, $0.24 per share. Kathleen Quirk, President and CEO, said, “Our team remains focused on providing metals essential for the economy and everyday life. Our work to produce our products and grow safely, efficiently and responsibly has never been more important. We remain vigilant in our efforts to reduce costs, improve efficiencies and carefully manage operating, administrative and capital spending in this uncertain macroeconomic environment. Freeport is well positioned for the future with large-scale production of copper, gold and molybdenum, a highly qualified and experienced team with a proven track record, a portfolio of attractive organic growth opportunities and a strong balance sheet and financial position.”

Southern Copper’s Chairman of the Board, German Larrea recently commented “on the Company ´s progress and current circumstances, said: "This quarter, SCC’s net earnings totaled $946 million, which represented a 29% jump in net earnings compared to 1Q24. This positive result was driven by higher sales and lower unit costs. Sales increased 20%, registering growth in sales volumes for copper (+4%), zinc (+42%), silver (+14%) and molybdenum (+10%). Over the period, we had better prices for copper (+11%), zinc (+16%) and precious metals (+38%). In addition to the good sales volumes and prices, the Company cash cost decreased from $1.07 to $0.77 per copper pound (-28%), driven by a drop in the operating cost and by growth in by-product revenues for molybdenum, silver and zinc. Recently, the copper market has been affected by instability, which has risen on the back of a shift in trade policies in the world’s major economies. We believe SCC’s commitment to balancing operational discipline and cost efficiency at current operations with our growth profile will allow us to weather short-term difficulties in coming months.”

Taseko Mines reported first quarter 2025 Adjusted EBITDA of $34 million and Earnings from mining operations before depletion and amortization and non-recurring items of $39 million. Revenues for the first quarter were $139 million from the sale of 22 million pounds of copper and 364 thousand pounds of molybdenum. The Company recorded a Net loss of $29 million ($0.09 loss per share) and an Adjusted net loss* of $7 million ($0.02 loss per share). Gibraltar produced 20 million pounds of copper and 336 thousand pounds of molybdenum in the first quarter at Total operating costs (C1) of US$2.26 per pound of copper produced. Mill throughput averaged 87,800 tons per day, which was above design capacity. Copper grades in the quarter averaged 0.19% and copper recoveries were 68%.

BHP Group will establish its first Industry AI Hub in Singapore to accelerate digital transformation and AI adoption in the mining and resources sector. The Hub will focus on solving BHP enterprise-wide challenges using AI technologies to improve safety and lift productivity. Once established this month, the hub of BHP AI specialists will look at further integration of data-driven decisions, intelligence and automation into the company’s core operations. With the support of Enterprise Singapore, and in partnership with AI Singapore (AISG), BHP selected Singapore to further develop its AI capabilities for its vibrant innovation ecosystem, strong digital infrastructure and alignment with BHP’s ambitions to scale technologies that deliver operational value. The Hub will support the growth of BHP’s digital capabilities in Singapore and the region, with plans for a number of AI specialists to lead collaboration between BHP teams and local AI partners to solve business problems.

Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for Troilus Gold Corp by Troilus Gold Corp. We own ZERO shares of Troilus Gold Corp. Please click here for disclaimer.

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