Bullish on copper Rocketing demand for EV auto parts is expected to present copper miners and refiners a huge challenge going forward ,Research quoted in Barron's said the mining industry need to produce 5 million tonnes of copper a month by 2030 which is 2.5 times the amount produced this year just to meet demand from EVs . The base metal is heading for a supply shortage by 2020 .Over 200 copper mines in operation will be depleted in the next 15 years . Without new ones , there will be a 15 million tonnes supply deficit by 2035 . Tesla surged yesterday to a record USD 1835 giving a market cap of USD 342 billion surpassing P&G ( value USD 337 billion) . Tesla's demand for nickel , cobalt and copper is collossal .This is not counting other auto makers who are also producing EV at an amazing speed . Anzo's involvement in copper recycling business comes at the opportune time as scrap copper constitutes the bulk of copper supply needed for EV industry . Investors must bear in mind that this vital aspect of Anzo's new business of copper export has not been fully reflected in the share price as yet .
NST 26 June 2020 " Anzo expects to turn around after sealing RM 1.3 billion deal "
MD Chai said " We expect Anzo to turn profitable this year and to remain profitable as the copper contract period is for 40 months . The earnings will be immediate for Anzo , he told NST .Chai said Postco would buy Anzo's scrap copper for remelting into copper plates and other copper products for industrial and electrification purposes .
Anzo will supply up to 60000 tonnes of copper scrap to CSTME at RM23000 per tonne over 40 months .CSTME will dismantle ,shred and grade before exporting to Postco International Corp effective July 1st 2020 .
Anzo said the deal is expected to strengthen its trading business and deliver sustainable earnings over a long period .Year to date , Anzo's revenue and gross profit increased to RM 15.5 million and RM 1.38 million respectively .
Copper rose above $3 a pound for the first time in more than two years on Wednesday, extending a recent rally driven by steady Chinese demand and disruptions to global supply.
Most actively traded copper futures for delivery in September added 1.6% to $3.0230 a pound, the first time they have eclipsed the closely watched $3 level since June 2018. Many analysts think that $3 copper incentivizes miners to pursue longer-term projects to extract metal. A dearth of investment in new mines due to low prices in recent years is one reason some analysts are bullish on the industrial metal, which is used to manufacture everything from smartphones to homes.
Topic: Exploring trading opportunities for base metals ( copper , aluminium ,lead , nickel tin ,zinc) in 2020 organized by Philip Futures . Basically the webinar will talk about risk management ,commercial hedging , intra and inter market spreads for base metals , key market and product developments for base metal derivatives in 2020 .
1. Tesla zoomed past USD 2000 2. EV Battery demand skyrocketting 3. Copper price rallies again with gold 4. Copper future price on track for highest close 5. Anzo's share movement correlate with rising copper price. 6. Lumber futures increase exponentially 7.Anzo's share price also mirrors price movement of increasing timber price 8 , MD Chai is acquiring distressed assets at bargain prices 9.Anzo's coming QR expected to be even better 10.At such undervalue price , Anzo is a delicious target for RTO , M&A by big funds
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
strattegist
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