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.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
