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Following Success: A Deep Dive into Coattail Investing

Coattail investing offers investors a look at premium tactics for navigating various markets and exposing highly prospective companies, initiatives and…

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This article was originally published by Investing News Network

Keeping up with the latest investment strategies is no easy task for a retail investor today. With fast-moving trends, changing market conditions and various industries to choose from, emerging investors have a lot to consider when building their investment portfolio.

But our hyper-connected digital world means you have access to more data and insights than ever before. This abundance of information has led to the rise of a new type of investment strategy: coattail investing.

Coattail investing, or copycat investing, provides all types of investors with deep insights into the same strategies used by iconic investors like Warren Buffett, Bill Ackman, Nelson Peltz, Eric Sprott and many other recognizable names. This article will outline the ins and outs of coattail investing, providing you with a strong foundation for this popular strategy.

This CEO Interview is brought to you by:

Opawica Explorations (TSXV:OPW) is a a Canadian junior mineral exploration and development company focused on Quebec and Newfoundland. The company is backed by a management team with decades of experience and success in the mining industry and lead investors GoldSpot Discoveries and Eric Sprott.Send me an Investor Kit

What is coattail investing?

Let’s start with the basics. Coattail investing is the investment strategy of replicating the investment style or ideas of well-known and successful investors or investment managers. Individual investors use the information published on the Securities Exchange Commission (SEC) website to identify what companies a specific investor invested in.

While the term is a cheeky play on the idea of riding on the coattails of those who presumably have much more investment expertise and skill, there is legitimacy to this strategy.

In recent years, this strategy has picked up stride amongst emerging investors who want to mimic the exceptional success of top international money managers, buy-and-hold managers and activist investors. Exploring potential risks and real benefits can shine a light on what you seek to gain from this investment strategy.

Cons of coattail investing

Coattail investing, like all investment strategies, doesn’t provide guaranteed results. Understanding the risks associated with coattail investing is an important step in making informed decisions as an individual investor.

Success is not guaranteed

No investment strategy has a 100 percent certainty of success. When considering coat-tailing, individuals must consider the investment style of who they seek to mimic or follow and decide whether that strategy aligns with their objectives. For example, abandoning value stocks, which sometimes take years to turn around can lead to significant losses.

Plus, it’s still recommended that you perform a suitable level of due diligence before investing in anything. After all, you may not always be able to determine the reason why a notable investor or investment fund made an investment, their timeline for the investment and other critical factors.

Off-timed stock movement

From the time the well-known investor or investment manager has acquired or disposed of a specific stock and the news of the activity has been made public, the stock may have already moved. Despite best efforts, sometimes the timing or delay in the news can have an adverse effect on the prospective investor.

Saturation of coattail investors

Considering the success of the top investors in the world, it is no surprise that many retail and institutional investors alike are watching what these skilled money makers are doing.

However, given the speed of information dissemination and trading in today’s markets, those late to the party can be at a substantial disadvantage.

Pros of coattail investing

In 2012, analysts pinned “copy trading” as one of the top ten wealth management trends in that year. As more individual investors enter into this competitive space, coattail investing poses an attractive investment strategy and potential economic upside.

Successful and credible professionals

Following investors and money managers with track records of investment success can be a great strategy for those being introduced to this fast-paced space. Luckily, investors who manage more than US$100 million have to file what they bought or sold every quarter with the SEC. Looking to others with more investment prowess can be a useful source for coattail investors and those with limited experience.

Buy-and-hold management

Coattail investing offers a look into the minds of top investors and their strategies in money management. With time lag between actual trades and reporting, investors can learn about the benefits of long-term holding and how notable names like Berkshire Hathaway’s Warren Buffett, an advocate for the concept that, “our favorite holding period is forever.”

Activist investors

With so many eyes on the world’s best investors, the influence they possess is enormous. They hold the potential to shift the appreciation of certain stocks just by releasing news of their investment activities and involvement in certain companies. For coattail investors following closely to these plans or activities, they can get a head start in acting on similar investing moves rather than waiting for regulatory filings.

Diversified portfolios

Replicating investment ideas from top managers and investors in different sectors can expand and diversify your investment portfolio. This wider exposure minimizes risks associated with focusing solely on the success of one or two sectors and can leverage positive trends in multiple industries or investment ideas across different holdings.

Top investors to watch out for

The rise in popularity of coattail investing is no fluke. Replicating the investment ideas of the world’s most successful and well-known investors and money managers is an exceptional strategy. While no investment strategy is a sure-fire win, following top investing legends is a great start.

Here are five of the best investors coattail investors should be watching out for:

Warren Buffett

No coattail investing list would be complete without one of the most notable and successful investors of all time. Buffett is one, if not the foremost proponent of the buy-and-hold strategy and has seen extreme success in this method of investment throughout the years. Although its investment returns over the years have been staggering, Berkshire Hathaway’s (NYSE:BRK.A,NYSE:BRK.B) massive monetary gains cannot be ignored as a prospective coattail investor.

Eric Sprott

Eric Sprott is an early champion of precious metals investing, building his Sprott (TSX:SII,NYSE:SIII) into the major holding company it is today. Over four decades, Sprott has invested in some of the most successful and significant precious metals and mining companies and initiatives with its unique access to highly differentiated precious metals and real assets investment strategies.

Sprott has invested between C$200 and $300 million into the junior mining space, with notable mentions including Silver Grail Resources, Canstar Resources (TSXV:ROX,OTCQB:CSRNF), Benton Resources (TSXV:BEX) and more. Opawica Explorations (TSXV:OPW), one of Sprott’s most recent investments, possesses exceptional mineral exploration potential across top mining districts in Quebec and Newfoundland and support from a results-driven management team with decades of experience in the mining industry.

Nelson Peltz

Despite not being a household name amongst retail investors, companies and institutional investors most likely recognize the name. Peltz is known as an activist investor and buys large stakes in companies, which garners significant influence in enacting changes to increase the profitability of these assets. For coattail investors, Peltz public holdings data and company, Trian Investment Partners, provides a great source for investment ideas built off his world-class investment expertise.

Bill Ackman

Bill Ackman stands as one of the star investors of 2020. He is a legendary hedge fund investor that was previously known for his Herbalife (NYSE:HLF) feud with billionaire Carl Ichan. Since then, his timely hedges at the start of the pandemic generated over US$3.6 billion in profits. As a very public figure about his investments across multiple media appearances, he offers brilliant investment ideas and philosophies to those looking to enter the investment space.

David Tepper

Some know David Tepper as the owner of the Carolina Panthers, but he is most notable for creating wealth with his hedge fund Appaloosa Capital Management and being regarded as one of the best market timers ever. He was one of the first large fund investors to realize the disruptive impact of COVID-19 and presumably took steps to limit the damage of the pandemic before the market tanked. Despite being less public than other investors, the advice Tepper offers is often rich with real directional market insight.

Takeaway

Coattail investing is a popular investment strategy where investors replicate the investment style and ideas of well-known and successful investors. Despite some drawbacks, this strategy offers individual investors a look into premium tactics in navigating the various markets and exposing emerging investment portfolios to highly prospective companies, initiatives and industries like precious metal mining, technology, and more.


This INNSpired article is sponsored by Opawica Explorations (TSXV:OPW). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by Opawica Explorations in order to help investors learn more about the company. Opawica Explorations is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.

INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.

The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Opawica Explorations and seek advice from a qualified investment advisor.

The post Following Success: A Deep Dive into Coattail Investing appeared first on Investing News Network.







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Calibre Mining to acquire Fiore Gold

  VANCOUVER – Calibre Mining Corp. [CXB-TSX; CXBMF-OTCQX] and Fiore Gold Ltd. [F-TSXV; FIOGF-OTCQB] have signed a definitive agreement for Calibre to…

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VANCOUVER – Calibre Mining Corp. [CXB-TSX; CXBMF-OTCQX] and Fiore Gold Ltd. [F-TSXV; FIOGF-OTCQB] have signed a definitive agreement for Calibre to acquire all of the issued and outstanding common shares of Fiore.

The transaction will create a diversified, Americas-focused, growing mid-tier gold producer with targeted annual gold production of approximately 245,000 ounces. The combined company will have comprehensive technical capabilities to exploit a pipeline of development and exploration opportunities across a broader portfolio. This growth strategy will be supported by a strong balance sheet with a combined cash balance of $96-million and no bank debt. All amounts are in U.S. dollars unless otherwise noted.

Calibre will be acquiring a 100% interest in Fiore’s operating Pan gold mine, the adjacent advanced-stage Gold Rock project and the formerly producing Illipah gold project in Nevada, as well as the Golden Eagle project in Washington State.

Key highlights

Creates a diversified, Americas-focused, growing mid-tier gold producer with targeted annual gold production of approximately 245,000 oz and AISC (all-in sustaining costs) of $1,020 per ounce. Nevada gold production of 50,000 oz per year at the Pan mine.

Supported by a mineral resource base of 4.4 million ounces of measured and indicated and 3.1 million ounces of inferred. Strong balance sheet with $96-million in cash and zero bank debt (as at Sept. 30, 2021).

Strong free cash flow generation to fully finance organic growth initiatives. Growth driven by near-term development of the federally permitted and fully financed Gold Rock project in Nevada and the Eastern Borosi project in Nicaragua. Multiple near-mine, high-impact exploration targets to support mineral reserve and mine life expansion.

Proven management team, led by Darren Hall as CEO and Blayne Johnson as chairman. Attractive relative valuation versus gold peers.

Johnson stated, “This transaction is the type of value-add diversified growth we set out to accomplish when we partnered with B2Gold to acquire our initial gold production The Pan heap leach gold mine brings an immediate increase to our production and cash flow, in addition to significant exploration potential.”

Tim Warman, CEO of Fiore, stated, “We are pleased to undertake this combination with Calibre to create a new mid-tier gold producer with excellent growth prospects. There is a great deal of common ground between our companies. In the past few years, we have both overseen the successful ramp-up of our respective assets through solid operating discipline and ESG focus.”

Fiore shareholders will receive 0.994 of a Calibre common share and 10 Canadian cents in cash for each Fiore common share held. The consideration implies $1.80 (Canadian) per Fiore common share, a premium of 44% based on the closing prices of Calibre and Fiore common shares on October 22, 2021, and a premium of 36% based on the volume-weighted average prices of both companies for the 20-day period ending on October 22, 2021. Existing shareholders of Calibre and Fiore will own approximately 78% and 22% of the combined company, respectively.

In addition to shareholder and court approvals, the transaction is subject to applicable regulatory approvals, including the approvals of the TSX and TSX Venture Exchange, and satisfaction of other conditions. The arrangement agreement has been unanimously approved by the board of directors of Calibre and Fiore.

 






Author: Editor

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Trending Silver Stocks To Buy Now? 3 For Your Watchlist

Which trending silver stocks are on your watchlist this week? In recent…
The post Trending Silver Stocks To Buy Now? 3 For Your Watchlist This Week appeared…

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Which trending silver stocks are on your watchlist this week?

In recent months, the market for silver stocks has been fairly interesting to follow. During the last year and a half, silver assets have skyrocketed in price due to the pandemic. Many silver assets saw bigger percentage returns than gold stocks. This attracted a large number of new investors to the metal who had previously passed it up. Another semi-recent occurrence also attracted a large number of new investors to silver. You’ve probably heard about the GameStop scenario, in which Reddit traders artificially inflated the stock’s price. This is something that has occurred multiple times with silver stocks as well.

Right present, the biggest factor pushing the price of this metal is the ongoing epidemic. When incidences of COVID-19 began to decline as a result of vaccines, things began to look bleak for mining stocks. Nobody knows what will happen in the United States now that the Delta variant has been rampant in multiple locations around the world.

As a result of the increased volatility, some investors have returned to silver stocks. If the government issues additional stimulus or the stock market crashes, mining equities are likely to benefit. Silver stocks were also boosted after news broke that Reddit traders were pushing the metal’s price higher at the start of 2021. This drew a lot more attention to silver equities and, as a result, attracted a lot more investors. Keeping this information in mind, which silver stocks will be on your watchlist as October continues?

Top Silver Stocks To Watch

  1. Pan American Silver Corp. (NASDAQ: PAAS)
  2. Endeavour Silver Corp. (NYSE: EXK)
  3. Hecla Mining Company (NYSE: HL)

Pan American Silver Corp. (NASDAQ: PAAS)

Pan American Silver Corp. is a mining company that discovers, develops, extracts, refines, and reclaims silver from various mines. These mines are located in Canada, Mexico, Peru, Argentina, and Bolivia, and are operated by the business. Gold, zinc, lead, and copper are also sold by Pan American. Pan American has a stake in a number of mines, all of which contribute to its bottom line.

The corporation released its second-quarter financial results for 2021 on August 10th. During the quarter, the company produced 142.3 ounces of gold consolidated. In 2021, it earned $382.1 million in revenue. These results were considered to be positive for Pan American Silver Corp. The company now expects its cash flows to further improve in the second half of 2021.

Now we will find out if the company’s cash flows have improved, as it will soon be reporting its third-quarter 2021 unaudited results. The release of these results will take place on November 9th. Pan American Silver will host an accompanying conference call and webcast on November 10th. It will be interesting to see what the company reports, as it could impact its stock price. For now, is PAAS going to be on your list of silver stocks to watch?

Endeavour Silver Corp. (NYSE: EXK)

Endeavour Silver Corp. is a silver stock that has recently seen a price increase. This business acquires, explores, and develops land. Endeavour’s mineral characteristics are being processed, refined, and reclaimed. The majority of Endeavour’s key assets are in Mexico and Chile. Endeavour’s mines are mostly used to seek for silver and gold.

Endeavour reported new production numbers on October 7th, 2021. The company reported 1,305,399 silver ounces and 10.541 gold ounces in the third quarter of 2021. This means that its total silver equivalent production was 2.1 million oz at an 80:1 silver:gold ratio, totaling 6.1 million AgEq for the 9 months ended September 30th. Currently, its silver equivalent production at each mine is on track to meet or improve on its 2021 production plans.

The CEO of Endeavour, Dan Dickson said, “Our 2021 business plan shows strong performance, which has resulted in higher production than last year, despite suspending operations at the small El Compas mine. This reaffirms an important year of investment into our people and culture programs to ensure the long-term sustainability of our operations.” On October 22nd, EXK stock price went up by 2.46% in the market. Its volume is also nearly double its market average. With this new info to note, will EXK be on your silver stock watchlist?

Hecla Mining Company (NYSE: HL)

Hecla Mining Company is a silver stock that went up 2.64% on the trading day of October 22nd. This company has an interest in base and precious metal properties all over the world. The company engages in the acquisition, development, production, and discovery at these properties. It offers silver and gold bullion bars, lead, zinc, and bulk concentrated. It has a 100% interest in the Greens Creek mine in Alaska, and the Lucky Friday mine in Idaho, as well as many others.

On October 12th, the company reported its preliminary production results for the third quarter of 2021. During this period, its silver production decreased to 2.7 million ounces because of lower grades at its Greens Creek mine due to sequencing. This was partially offset by its positive Lucky Friday production. Hecla’s total gold production was in line with last year, at 42,206 ounces.

The President and CEO of the company, Phillips S. Baker Jr. said, “Greens Creek had a good quarter but was down compared to an exceptional 2020 third quarter. The mine experienced lower grades due to the mine sequence, which was driven by manpower challenges that are being addressed through schedule changes and other means.” On October 22nd, HL stock’s volume is at about 7.7 million compared to a market average of 6.2 million. With this to note, will HL stock make it on to your silver list this month?

Best Silver Stocks To Buy?

Choosing the top silver stocks to invest in can be a difficult task. Developing an investment strategy can assist to mitigate many of the risks. This might be as basic as checking the company’s or industry’s recent news. Analyzing what’s going on in the world can also be beneficial, as everything from job reports to government stimulus has a significant impact on mining stocks. With all of this in mind, which silver stocks will you add to your list this month?

The post Trending Silver Stocks To Buy Now? 3 For Your Watchlist This Week appeared first on Gold Stocks to Buy, Picks, News and Information | GoldStocks.com.

Author: Jon Phillip

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Pampa Metals’ surface geological work at Block 4 property leads to intense porphyry-related quartz-vein stockwork zone

2021.10.25
Pampa Metals Corp. (CSE: PM) (FSE: FIRA) (OTCQX: PMMCF) continues to make significant progress in its quest to find greenfield porphyry discoveries…

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2021.10.25

Pampa Metals Corp. (CSE: PM) (FSE: FIRA) (OTCQX: PMMCF) continues to make significant progress in its quest to find greenfield porphyry discoveries along the mineral-rich belts of Chile’s Atacama region.

This week, the junior miner provided an update regarding its Block 4 project, where the company recently completed detailed surface geological reconnaissance together with a ground magnetic geophysical survey of the 4,200-hectare project area.

Block 4 Project Overview

Pampa Metals’ Block 4 project is located along the Cordillera de Domeyko porphyry copper belt in northern Chile, which is host to some of the world’s largest copper deposits and mines.

The property is located along a highly prolific segment of this Andean mineral belt, centered along trend some 110 km south of the giant La Escondida – Zaldivar copper mining district and 115 km north-northeast of the El Salvador copper mine (see map below).

Location of Block 4 on regional map, together with other Pampa Metals’ properties along the Domeyko copper belt

Significant portions of the Block 4 project area are characterized by post-mineral Miocene to recent alluvial and volcanic cover, particularly to the north and east within the property boundary, where the underlying geology is obscured.

Elevated sierras around the western and southern margins of the property expose basement rocks that include Palaeozoic felsic volcanics and intrusions, and Mid to Late Triassic andesites, sediments and andesite-dacite porphyries.

According to Pampa Metals, these basement rocks are limited to the east by a series of north-south to north-northeast faults, which to the north have continuity with the Escondida fault that cuts the La Escondida – Zaldivar mining district.

Old reports and regional data indicate that Jurassic sediments are intruded by Lower Tertiary dioritic rocks under the gravels to the east of the north-south fault system.

Palaeozoic felsic volcanic rocks in the central-northeastern part of the property display copper-oxide mineralization at surface associated with hydrothermal alteration with quartz veins and veinlets, the relationship of which to porphyry systems has been tested in the past by 11 RC drill holes identified on this portion of the property, the results of which are still unknown.

Felsic basement rocks in the central part of the project area are cut by a possibly Lower to Mid- Tertiary porphyry of fine, dacitic composition that is poorly exposed over an approximate area of 600m x 300m. This shows strong evidence of porphyry-type development with phyllic alteration and narrow and thick veinlets of “A” type quartz veinlets together with sinuous, banded grey quartz veinlets (see photo below).

This veinlet style is typical of some gold-rich porphyry systems in northern Chile. Limited samples (due to the lack of outcrop) have been submitted for chemical analysis, with results pending.

Various processed product maps from the recently completed ground magnetic geophysical survey at Block 4 consistently reveal a clear, isolated magnetic high in the central part of the property, which is coincident with the zone of quartz-veinlet stockworks.

The magnetic anomaly is about 800m x 800m in surface plan view, and depth slices of the data suggest a subvertical, conical body at least 750m in vertical extent, possibly connected to a larger intrusion to the northeast and southeast (see figure below).

Block 4 – Magnetization vector inversion at 100m depth

The magnetic data indicate additional anomalies that may be associated with magmatic centers and/or porphyry-related hydrothermal alteration zones, with minor copper oxides occurring in the exposed zones, while others under cover are associated with north-south faults or magnetic lineaments. One of these has four historic RC drill holes on its margins, with unknown results.

Pampa Metals is continuing with the processing and interpretation of its field geological and geophysical data, including pending chemical analyses from limited sampling, to decide the next steps for the project.

These may include one or more of further geological work, limited trenching, additional geophysical surveys and reconnaissance drilling.

Project Portfolio

Block 4 is only one of several highly prospective projects that the company is actively advancing in the heart of Chile’s world-class mineral belts.

Pampa Metals has a unique portfolio of eight exploration projects covering a series of greenfield copper and gold targets within a total area of 59,000 hectares, which, in terms of land position, is almost unrivalled for a junior miner operating in Chile.

These projects (Arrieros, Block 2, Redondo-Veronica, Block 3, Block 4, Cerro Buenos Aires, Cerro Blanco and Morros Blancos) are all located along proven mineral belts of the Atacama region, including the Central Paleocene and Domeyko belts that have dominated the world’s copper production.

As shown on the map above, five of those projects are situated along the mid-Tertiary porphyry copper belt of northern Chile — the Domeyko Cordillera — that is host to three of the world’s top five copper mining districts at Collahuasi, Chuquicamata and Escondida (the world’s biggest).

The remaining three are located in the heart of the Paleocene mineral belt, which hosts a series of important porphyry copper deposits and mines such as Cerro Colorado (BHP), Spence (BHP), Sierra Gorda (KGHM & Sumitomo) and Relincho (part of Nueva Union – Teck-Goldcorp).

Note that many, but not all, porphyry deposits in Chile (and worldwide) occur in clusters, and brownfields exploration once a discovery is made can be very productive.

The northern Chilean Atacama Desert extends from the Peruvian border into Peru, down to somewhere north of Santiago; most of the principal mining districts in Chile are located in this sparsely populated, desert area. The main exceptions are the large copper mines (El Teniente, Los Bronces, Andina, Pelambres) to the east of Santiago.

The northern desert is characterized by elevated ranges of mountains, separated by relatively flat, piedmont-gravel-filled “pampas” that conceal the underlying geology. A rough estimate would suggest that at least 50% of northern Chile is covered by pampa deposits. One might consequently deduce that half of the likely mineral deposits are thus concealed by pampas.

These areas remain underexplored because they contain a layer of gravel, 30-50m thick, that was deposited after the formation of the porphyries.

Notwithstanding the important discoveries noted above, there are still very large areas of untested pampas in northern Chile that have the potential to conceal important mineral deposits.

Outcrops in the pampas are rare, however. If found, they can display similar characteristics, in terms of geology and hydrological alteration, as copper porphyry deposits. Pampa Metals’ game plan is to first conduct surveys to find the outcrops, and then sample and drill them.

2021 Drilling Plan

Since its inception in late 2020, Pampa Metals has been rapidly self-funding exploration on projects with the greatest potential for copper discoveries.

Detailed geological mapping has already been completed at the Redondo-Veronica, Cerro Buenos Aires, Block 3, Arrieros and now the Block 4 projects.

Phase 1 drilling on the Redondo-Veronica and Cerro Buenos Aires properties has also been completed, with more drilling planned on both properties in the coming months, along with initial drilling at Block 3 and Block 4. These four projects will be Pampa Metals’ near-term exploration focus.

Results so far from just the Cerro Buenos Aires portion drilling have shown “highly encouraging indications of a porphyry system,“ the company recently revealed.

Could the outcrop at Cerro Buenos Aires be the tip of the iceberg of a large porphyry underneath? Further drilling should reveal more about the geology and mineralization.

Meanwhile, Pampa Metals is also leveraging third-party funding from major shareholder Austral Gold Ltd. to expedite exploration activities on the Cerro Blanco and Morros Blancos properties.

Cerro Blanco and Morros Blancos are considered two of the three “lithocap” projects within Pampa Metals’ eight-project exploration portfolio. Lithocap targets geologically represent the upper portions of potential porphyry copper systems, and, according to the company, often have significant precious metals potential.

Historical results to date at both projects suggest good potential for near-surface gold-silver mineralization possibly associated with deeper copper mineralization.

Copper Squeeze

Pampa Metals’ hunt for the next big porphyry discovery in Chile comes amid a historic copper bull market.

Copper is a major component of motors, batteries, inverters, wiring and charging stations for EVs, and as such, is essential to the global drive towards low-carbon technologies.

Data analytics firm Fitch Solutions estimates that demand for “green” copper alone could reach 1.4 million tonnes in 2021, then rising to 5.4 million tonnes in 2030 at an average growth rate of 13% year-on-year.

An influx of infrastructure spending to reinvigorate economies during the Covid pandemic has also jolted the commodities market, sending copper prices to a record high earlier this year.

However, a copper bull market poses widespread challenges to the global supply chain. Due to a lack of new projects and booming demand, we’re seeing a supply deficit that is rapidly growing on a yearly basis.

A report by CRU Group had predicted earlier this year that the world will face a massive copper shortfall within a decade, with the annual supply deficit estimated at 4.7 million tonnes by 2030.

Without new projects, the global copper supply gap could reach as high as 15 million tonnes by 2035, CRU says.

Source: CRU Group

To close the gap, the world will need at least 10 million tonnes of copper, according to CRU, requiring upwards of $100 billion in total spending.

Global commodities trader Trafigura went even further, anticipating a significant deficit in the region of 10 million tonnes by then.

Exacerbating the issue is the surging power costs in parts of the world that have caused factory slowdowns, imperiling the production of smelters worldwide.

Last week, the London Metal Exchange began to experience a critical shortfall in its copper inventories, with the metal available for withdrawal hitting its lowest levels since 1974.

Bank of America Corp. recently said a copper price of $20,000/tonne — which is almost double its all-time high — could be possible if major supply-side issues arose simultaneously.

The short-term headwinds, combined with escalating copper demand, illustrate why it is imperative for miners to quickly develop new projects in time to catch the upcoming rally.

Conclusion

Out of all copper explorers, what really works to Pampa Metals’ advantage is its considerable land position within Chile, the #1 copper-producing nation, accounting for over 25% of the global output.

Three of the world’s top 5 copper mining districts in the northern desert area, where all eight of Pampa Metals’ projects are located. Some of the biggest copper mines, such as El Teniente, Chuquicamata and Escondida (the world’s largest), are all found within this region.

The company’s executive team has also accumulated years of experience at global majors like BHP, Rio Tinto and Anglo American; these mining giants have all undertaken significant exploration and production in this particular part of Chile.

The Pampa Metals’ team, too, has significant experience within the Atacama Desert in northern Chile, having helped to bring BHP’s large-scale Spence copper mine online.

As we’ve previously discussed, recent drilling at both the Cerro Buenos Aires and Redondo-Veronica properties has given the company early indications that they are in the vicinity of a highly mineralized porphyry copper system.

Further drilling would be needed for confirmation, but given the success of those who have explored for copper here in the past, PM’s large land position, and experienced management, there’s no reason why Pampa Metals can’t be as successful

Pampa Metals Corp.
CSE:PM, FSE:FIRA
Cdn$0.42, 2021.10.21
Shares Outstanding 46.4m
Market cap Cdn$19.3m
PM website

Richard (Rick) Mills
aheadoftheherd.com
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Author: Gail Mills

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