Copper Industry Outlook - What To Know
Massive fiscal stimuli in major economies throughout the world continue to bolster the fortunes of this important industrial metal. Indeed, the futures market remains heavily in long territory compared to the early half of the decade, according to the latest COT (Commitment of Traders) report.
Copper demand is expected to continue to grow, driven by building, construction and electrical network infrastructures. Additionally, targeted green economy investments by governments globally have increased the demand forecast for copper in the electric vehicles and renewable energy markets.
Comparisons are being made to the commodity bull market of 2009, suggesting that copper prices have further potential to rise.
The Democrats stimulus plan will be positive for gold, but it will be extremely positive for copper, said John Thomas Steen, associate professor at the University of British Columbia's mining school.
"A Biden win is extremely positive for copper. The estimated cost of preparing the electricity grid in the U.S. ... is about a Tn dollars. That's a huge stimulus, but it's a wicked amount of copper," said Steen.
Steen argues that the whole story of battery material demand seems to be driven by cars and Tesla, but that misses a larger picture.
"In the mining space, we have to look beyond the cars. Cars are getting a lot of attention [due] to the magnetism and charisma of Elon Musk, but there's a much, much bigger story here. It's the electrification of everything."
So Why Is This Noteworthy For VGLS?
Recently, the company changed gears and has begun a restructuring effort to focus on mining.
And, with this move, a strong potential driver indicator appeared.
Your No. 1 VGLS Potential Driver Indicator - Acquisition News
VG Life Sciences has Reached a Definitive Agreement to Acquire Tamra Mining and Executed a Definitive Joint Venture Agreement with SOPerior Fertilizer Corporation
Park City, Utah (November 23, 2020) VG Life Sciences, Inc. (“VGLS” or the “Company”), today announces that the Company has reached a definitive agreement to acquire Tamra Mining Company, LLC and reached a definitive joint venture agreement to develop SOPerior Fertilizer Corporation’s Blawn Mountain alunite resource.
The Company has reached a binding agreement to acquire Tamra Mining Company, LLC, (“Tamra”) a copper mining company located near the town of Milford, Utah. Tamra controls nearly 60,000 acres of mineral rich property and significant infrastructure to mine, process and produce finished copper cathode, a metal in high demand as the country’s industrial sector bounces back from the [pandemic] related slowdown.
In conjunction with the acquisition of Tamra, the Company has simultaneously reached a binding joint venture agreement whereby the Company can earn an 85% controlling interest to develop SOPerior Fertilizer Corporation’s (“SOPerior”) 11,400 acre Blawn Mountain alunite deposit (see www.soperiorfertilizer.com), the United States’ largest non-bauxite alumina deposit coupled, with vast potash reserves.
Blawn Mountain’s pre-feasibility study (Canadian 43-101) reports proven and probable mineral reserves of 426Mn tons and 153Mn of proven and probable reserves from two of the 4 explored areas of the lease. Blawn Mountain is located approximately 35 miles southwest of Tamra’s processing infrastructure that will be enhanced to process copper, alumina and potash, concurrently. Both operations hold existing mining permits to immediately begin operations although it will require time to rehire staff, design and permit the alunite processing facility.
The two operations combined offer a unique synergy since the processing of alunite releases an acidic by-product that will be used to extract copper from Tamra’s copper rich carbonate deposits thereby eliminating the need to purchase third party acid resulting in lower operating costs.
The Company will focus on rehabilitating the existing Tamra processing infrastructure, resume mining operations over time, and begin the design and development of the enhanced processing infrastructure to process alunite while looking to expand its resource footprint in this mineral rich region of Utah.
Read the full article here.
Your No. 2 VGLS Potential Driver Indicator - Bullish Technicals
As of 11:00AM EST on Friday, 2/5, VGLS was displaying a multitude of bullish technical indicators in both the small and long terms.
Here's a full rundown of bullishly triggered technicals from Barchart:
Short Term Indicators
- 20 Day Moving Average
- 20 - 50 Day MACD Oscillator
- 20 - 100 Day MACD Oscillator
- 20 - 200 Day MACD Oscillator
Long Term Indicators
- 100 Day Moving Average
- 150 Day Moving Average
- 200 Day Moving Average
- 100 - 200 Day MACD Oscillator
Plus, on top of all of those, Barchart's composite "TrendSpotter" indicator is triggered as "BUY."
In both the short and long term, the website goes on to give VGLS a "100% BUY" recommendation.
Overall with medium term indicators included, the website ranks VGLS a "56% BUY," but here's where things get interesting.
Last month Barchart reported VGLS a "72% SELL" and last week a "16% SELL."
These figures appear to show that VGLS has been trending in a positive direction over the past 30 days and may just be heating up for an even bigger move.
Your No. 3 VGLS Potential Driver Indicator - Trading From Potentially Strong Support
Take a look at the VGLS 1-month chart below: