Time For Copper and Industrial Metals to Hit Bottom?

Glencore is cutting global production of zinc. Copper and nickel could be next.

For the past two weeks I have written to my premium subscribers to look at copper and the industrial metals as I saw deep pocketed private equity funds and billionaires such as Carl Icahn and KKR taking big bets on beaten down Dr. Copper hitting five year lows. I knew that a bottom could be forming and that we could be near the final turn. It was my first copper bet in many years.

Now it appears that the call of a bottom in copper and industrial metals could be confirmed by the recent news that Glencore is cutting global production of zinc. Copper and nickel could be next. The Commodity Giants such as Glencore are in great financial duress right now shutting down mines left and right that are losing money at these low commodity prices. They recently shut down two African Mines.

Other industrial metals most notably copper are also rising as the recent downturn in prices has forced many of the high cost mines to shut down as well as the companies could not turn a profit. The news out of Glencore over zinc is also shocking the copper market highlighting the painful effects of this commodity crash as even the giants have fallen. There is a coming supply shortage coming to the commodity markets which could be unparalleled as the major miners have been absolutely devastated in this historic downturn.  Here are some recent companies I have purchased as an investment and have welcomed on my website as an advertiser.  I am highly selective of companies and I believe they have exciting stories to tell to my readers.

1)Attention should be paid to Excelsior Mining (MIN.V or EXMGF) who just announced that they purchased out of receivership an adjacent Copper Mine to their Gunnison Project in Arizona and will be raising $12 million USD. The Mine comes with a working solvent extraction plant which could process solutions from Gunnison saving time and money to get into production. Commenting on the Johnson Camp Transaction, Stephen Twyerould, President and CEO of the Company, said, “This is expected to allow us to significantly reduce our upfront capital requirements and the time required for the start-up of the Gunnison Project. The Company also intends to thoroughly examine the potential of Johnson Camp, especially since this is the first time in its 130 year history that the entire Johnson Camp district has been consolidated under one ownership.”

Excelsior’s Gunnison Project is possibly the lowest cost and most advanced project in the US in control of a junior miner at the Prefeasibility stage. Because of the uniqueness of the project copper can be recovered through In-Situ Recovery. I have learned about ISR from the uranium sector most notably from the low cost ISR producer Uranerz Energy which was acquired by Energy Fuels (OTC:UUUU) earlier this year.

See the full news release on Excelsior’s Johnson Camp acquisition and financing by clicking here….

See my recent interview with Excelsior Mining (MIN.V or EXMGF) CEO Stephen Twyerould by clicking here…

2)Keep a close eye on Uranium Resources (NASDAQ:URRE) whose merger with Anatolia is deeply supported by both sides. This new deal could make URRE a near term low cost producer with the Temrezli Project. Cost savings were impressive and the company could be well positioned after the consolidation for the coming upturn in uranium prices. Don’t forget URRE has many idled projects in the US which could also provide leverage to a rebound in uranium prices. In the meantime, URRE will now have the Temrezli ISR Project which is at the Feasibility Stage and could be a profitable project even at these low uranium price levels. Merger should close around November 9th.

See the news release showing overwhelming support from Anatolia and URRE shareholders by clicking here…

See my recent interview with Uranium Resources (URRE) CEO Chris Jones by clicking here…

3)An earlier stage nickel explorer in Voisey’s Bay Equitas Resources (EQT.V) continues to excite me and grab the attention of the junior mining investment community. They recently acquired additional claims to the west of their Garland Property which the company is currently drilling. VP Exploration of Equitas (EQT.V) Everett Makela recently stated in the press release, “I am pleased with the progress of the Phase 2 campaign to date..The three additional anomalies at O, P and Q increase our odds for success, and we are adjusting the program to accommodate exploration of these targets. Recent interpretation of the multi-km Southern Response Trend has led to a shift of exploration focus to this area. We will continue to provide updates on results as they become available”. Mr. Makela worked with Inco and Vale on nickel exploration and is a specialist in target generation and managing exploration programs.

See the recent update on exploration at Garland by clicking here…

See my recent interview with Equitas (EQT.V) CEO Kyler Hardy by clicking here…

Disclosure: I own shares in MIN, URRE and EQT. They are all website sponsors so I do have a conflict of interest as I would benefit if the share price increases. This is not financial advice. Please do your own due diligence as there are many risks.

Disclosure: I am/we are long EXMGF, URRE, EQTRD.

Additional disclosure: These stocks are also advertisers on my website Goldstocktrades.com

By Raphael Thurber

Raphael Thurber is a respected resource writer and editor. A graduate of the College of William and Mary, Raphael is a longtime contributor to Yahoo Finance, with an interest in resource and investment journalism that spans over 10 years. As Editor of MiningFeeds, Raphael is responsible for assuring that the site remains a valuable knowledge resource for those in the mining sector.

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