"Most, if not all, the reports I've seen have been talking about a large (copper) deficit looming in the not-too-distant future," said Rob McEwen of McEwen Mining.
Rob McEwen: Gold for Wealth, Copper for Electrification — How to Position Right Nowyoutu.be
After a slow summer, where should resource investors be positioning right now?
In an interview, Rob McEwen, chairman and chief owner of McEwen Mining (TSX:MUX,NYSE:MUX), reiterated his positive stance on gold and copper, two metals to which his company has strong exposure.
In terms of gold, McEwen noted that central banks around the world continue trying to cool inflation with interest rate hikes, which is widely perceived as a headwind for the yellow metal. But in his view that's not the case.
"Too many people are looking at interest rates rising and saying that's negative for gold. I think it's very positive for gold," he told the Investing News Network. "A lot of the speculative areas are being hit now because it's costing more to carry — it didn't cost anything before with interest rates close to zero."
Looking over to copper, McEwen spoke about the progression of McEwen Copper, a subsidiary of McEwen Mining that launched last year to house the Argentina-based Los Azules project.
In late August, McEwen Copper closed an oversubscribed US$81.85 million offering. In the interview, McEwen shared how the company plans to move forward at the asset. Drilling is scheduled from October of this year until June 2023, and an updated preliminary economic assessment is set for Q1 next year. An initial public offering is expected in H1 2023.
Although recession concerns have left some market participants wondering if a copper slowdown is in store, McEwen is optimistic about the base metal's future as the electrification trend continues.
"Most, if not all, the reports I've seen have been talking about a large (copper) deficit looming in the not-too-distant future. If you combine a deficit with the lengthening of the timelines to bring on production, there's some very optimistic price forecasts for copper," he explained. "Copper is the metal of electrification."
He emphasized that Los Azules also has a strong gold component. "I think there's a lot of (copper) value there, and the gold is definitely for free — that exposure at the current share price," he said.
Watch the full interview above for more from McEwen on gold, copper and his company.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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