Attractive Copper Project raises $200 million in funds

Attractive Copper Project raises $200 million in funds

Everyone in the market right now has its eyes on copper prices ever since its recent high rise in years, to over $3.70 per pound.

It is speculated that this recent surge in prices has to do with the metal’s high demand for future technology used in renewable resources. So copper mines and are all in to take advantage and fasten their projects to start production.

Taskeo is accelerating its Florence copper project, moving forward with final design engineering of the commercial productions

They have announced a completed offering of $400 million aggregate principal, amount of 7.0% senior secured notes due in 2026. Taking this into the equation, they will have $131 million available for capital expenditures, working capital and general corporate purposes. This will help strengthen their financial position and lower capital cost.

Taseko stated that Florence is one of the least capital-intensive copper production facilities with an estimated $0.90 per pound of copper once operating and a production of 40,000 tons of high-quality cathode copper annually for the US market.

References: M. (2021, February 10). Taseko raises $200m to fund Florence copper project. Retrieved from https://www.mining.com/taseko-raises-200m-to-fund-florence-copper-project

Changes for the US energy system under Bidens new rules

Changes for the US energy system under Bidens new rules

During election, the energy system is always a topic for candidates. The Biden administration made a clear ground on how they are going to manage this system and have already began to do so after just taking office. The priorities of administrations have always sought to have their impact on the way the energy system functions, but is it that much of an impact as the demand, prices, and technological breakthroughs?

Since the 1950s to this day, energy sources have gone through constant change. For instance, in the beginning Oil and Coal were dominating the market. Oil still has a strong presence, but Coal has been decreasing and being taken over by Gas, because of its ability to transport much faster and cheaper and Gas plants are more efficient, have a lower cost of investment and maintenance.

More recently there has been an increase in production from Nuclear, Wind, Biofuels, Hydro-Electric and Solar. These shifts are largely driven by prices and technological advances, rather than by political decision.

For instance, the GW Bush administration, which was friendly with fossil fuels, considered with a decline in the share of energy supplied by oil due to its spike in price. But after new drilling methods were discovered, a decline in prices were taken advantage over the Obama and Trump administration.

From what has been learned historically, the market and technology are more important in determining the shape and evolution of the energy system than political decisions. Non the less, they still have their impact through taxes and regulations, that end un impacting the producers.

The energy system is characterized by continuity and evolution, rather than a revolution. So maybe the best thing to do know in this administration is should sit down with the energy and mine industries and have a talk. Go over their objectives and priorities, where are they standing off and how are they going to reach them (in realistic terms). Because being prepared for changes in the market will be key to the economy and their people.

Comeback for oil and copper commodities

Comeback for oil and copper commodities

Retaliating from the steepest downturn since the Great Depression, investors are beginning to bull on commodities as the global market starts to escalate. With the groundbreaking news of the covid19 vaccine being applied and more political news becoming clearer, it has opened a path for investors to starttaking risks on commodities again.

Copper and oil have always been strong indicating commodities for the global economy. With the upcoming economical reactivation, we can see in the future a big rise in demand. For oil, an increment in supply will be needed as more people resume driving and flying activities. As to Copper, it has risen 70% above its March low and to its highest in six years, besides its high demands do to the increment in renewables and the high demand from China, as well asother metals.

This forecast is good news for everyone, since everybody was affected either through health or economiissues or even both. We can see a promising future for 2021, with the help of the massive application of the vaccine, we will be able to see the growth of a strong economy.

 

References :

Commodities hit 6-year high with recovery boosting oil, copper. (2020, December 11). Retrieved December 19, 2020,

from https://www.mining.com/web/commodities-hit-6-year-high-with-recovery-boosting-oil-copper/