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Why Investors Are Buying Copper Today for a Green Energy Future

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Many countries have now set ambitious goals for reaching net-zero emissions by 2050. The goal was first discussed at the United Nations Climate Change Conference in Paris in 2015. Several signed the agreement at the conference stating that they would work to reach net-zero emissions.

Now, we have the technologies to make it happen. Electric vehicles, solar power, and wind turbines are all on the rise, and they will only get cheaper and more efficient. It’s important that we make the switch to clean energy sources now before it’s too late.

One big reason investors are buying copper today is that it’s an essential element in many green energy projects. Copper is used to building electric vehicles, power grids, and more. It’s also an important part of solar panels and wind turbines.

However, according to a recent S&P Global report, many authorities including the US government, the European Union, the International Monetary Fund (IMF), the World Bank, and the International Energy Agency (IEA) have expressed concern as to whether there will be enough minerals to meet the requirements of the emissions targets. The move to a mineral-intensive energy system will set up the current supply shortfalls in metals like copper for further squeezes.

The industry scrambling to cover those shortfalls, mining, has seen major changes in the past decade. A focus on green energy as well as a tech industry that continues to grow has meant soaring demand for minerals such as copper. It has also meant rising valuations for projects that could contribute to the future of the copper market.

Projects like the Warintza copper project in southeastern Ecuador, owned by Solaris Resources (TSX:SLS) (OTCQB:SLSSF) have received significant interest from investors as it continues to advance its world-class greenfield development project. The company has already defined a 1.5Bt inventory in an open pit with a low strip ratio at the Warintza Central deposit, and within that a high-grade starter pit driving really robust economics. Warintza Central is one of four discoveries made within their porphyry cluster representing multiple times growth potential beyond the initial 1.5 Bt mineral resource.

The Warintza Project is one of many copper projects that investors are buying into today for a greener future. Copper is an essential part of green energy projects, and investors are betting that the demand for copper will continue to grow.

Copper’s historical role has shifted quite a bit. In the past, copper was only used to build things like electrical wires and the infrastructure needed to support green energy projects. Today, copper is an essential part of solar panels and wind turbines. Copper is also an important part of electric vehicles and the power grids that support them.

Infrastructure projects in the United States to build a stronger, bigger electrical grid also require copper. Initiatives to build charging station networks for EVs have begun in many major cities in the United States. Copper is also an essential part of these charging station networks, delivering the electricity needed to power the EVs that continue to grab more market share every year.

Unfortunately, the shortfall of copper and other critical minerals threatens to stall the switch from an emissions-heavy energy system to a more sustainable one. Rising copper prices and valuations for copper mining assets are sure to be part of the future of the industry. For Solaris Resources, continued progress at its flagship Warintza Project is more than just business – it’s a bet on the future of the world’s energy system.

Investment

S&P/TSX composite up more than 100 points, U.S. stock markets mixed

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TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 103.40 points at 24,542.48.

In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.

The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.

The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.

The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.

This report by The Canadian Press was first published Oct. 16, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Economy

S&P/TSX up more than 200 points, U.S. markets also higher

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TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.

The S&P/TSX composite index was up 205.86 points at 24,508.12.

In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.

The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.

The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.

The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.

This report by The Canadian Press was first published Oct. 11, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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S&P/TSX composite little changed in late-morning trading, U.S. stock markets down

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TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.

The S&P/TSX composite index was up 0.05 of a point at 24,224.95.

In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.

The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.

The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.

The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.

This report by The Canadian Press was first published Oct. 10, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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