Red Cloud Securities Inc initiated coverage on Deep-South Resources Inc. with a BUY rating and C$2.00 target price. Deep-South Resources Inc. trades on The TSX.V SM & OTCQBSMTF Deep-South Resources is a mineral exploration and development company. Deep-South holds 100% of the Haib Copper deposit in the south of Namibia. Haib is one of the largest undeveloped copper deposits in Africa. The recent preliminary economic assessment demonstrated that at a price of copper of $4.00 / lb, it generates an after-tax NPV of $1,650 million and an after-tax IRR of 42%. The copper price as of April 23, 2021 was $4.3355 USD/pound Red Cloud Securities Inc is a registered Investment Dealer in all Canadian Provinces and part of Red Cloud Securities Inc’s business is to connect mining companies with suitable investors. Pierre Leveille, President, CEO & Director of Deep-South Resources, interviewed on Market One Minute by Hannah Bernard from BNN Bloomberg. Use the link below to access the video interview https://www.bnnbloomberg.ca/video/d...holder-structure-provides-a-rare-edge~1388158
Copper breaks resistance to trade at levels not seen since 2011..........DSM gaining momentum Copper continues to climb and hits its highest level since August 2011. Since breaking the trendline back in July 2020 the price has not looked back. From the March 2020 low Dr Copper is now trading just over 123% higher and some analysts are predicting the trend is still going to continue. Goldman Sachs's team of commodities analysts, led by veteran Jeff Currie, said "Copper is the new oil" in one of their latest reports. From a technical perspective, a logical target for the bulls is the 2011 high of $4.64/lb. In that bull run, the price moved 270% higher from the low point in December 2008 and if this current wave is anything like that one there is some way to go for the base metal. Looking at the volume at price, the $4.07/lb area is looking like it is gathering some importance. If the price does move back then maybe that level could be an important one for support. The previous wave high at $4.37/lb could also be an interesting level to watch. The rest of the Goldman Sachs report noted "Discussions of peak oil demand overlook the fact that without a surge in the use of copper and other key metals, the substitution of renewables for oil will not happen,'. The report added copper will be needed to create the new infrastructure systems required for clean energy to replace oil and gas, however, there has not been enough of a focus on this so far according to the report. Demand will therefore significantly increase, by up to 900% to 8.7 million tons by 2030, if green technologies are adopted en masse, the bank estimates. Should this process be slower, demand will still surge to 5.4 million tons, or by almost 600%. Goldman Sachs recently upgraded its 2025 price target to $15,000 per metric ton ($6.80/lb). Source KITCO.COM
Copper prices at decade highs headed for all-time highs – analysts A perfect storm is driving copper prices to their highest level in a decade, and analysts said it's only a matter of time before the industrial metal surpasses its all-time highs from February 2011. According to analysts, copper is benefiting from renewed demand as the U.S. economic recovery picks up steam at a time when the metal is expected to experience a significant supply crunch as mine production is not likely to keep with the growing global appetite. The latest supply disruption threat in the copper market came Monday after Chilean port workers called for a strike action in response to President Sebastian Piner's move to block a bill that would have allowed workers to make a third round of early withdrawals from their pension funds. Chile is responsible for a quarter of the world's copper mine production. "Metals supply risk is receiving a jolt as Chilean port workers threatening to disrupt copper shipments for the world's largest producer nation. At the same time, reflation signals continue to fire on all cylinders, providing a powerful combination for sharply higher prices," said analysts at TD Securities in a report Monday. In a separate report Monday, the Canadian bank also said that they were stopped out of their short copper trade. The bank noted that potential disruptions will continue to support higher prices. "While tracking global freight rates and loading times suggests bottlenecks could already be easing, with these gauges well below February highs, a potential Chilean port strike is a substantial risk given already-tight concentrate markets. In this context, even a modest disruption could have an outsized impact on prices," said Bart Melek, head of commodity strategy at TDS. The significant supply/demand imbalance has pushed prices to their highest level since July 2011. June high-grade copper futures last traded at $4.44 per pound, up 2.4% on the day. Copper's all-time high comes in at $4.6255 a pound. For the year, copper futures are up nearly 26%. Natalie Scott-Gray, senior metals analyst at StoneX, said, in a note to clients Monday, that copper prices have room to move higher. "Copper long-term bull run remains intact, with near-term upwards momentum continuing to gain strength, despite prices moving into overbought territory," she said. Daniel Briesemann, commodity analyst at Commerzbank, said that not only is strong economic growth helping to drive copper demand, but the U.S.'s new commitment to decarbonize its economy will be a significant supporting factor. "In our opinion, the copper market is likely to remain undersupplied this year," said Brieseman. Mike McGlone, senior commodity strategist at Bloomberg Intelligence, said in a report Monday that the future looks bright for the copper market as the world moves to reduce its carbon footprint. "Existing trends in decarbonization and electrification are gaining traction from the new U.S. presidential administration, with negative implications for fossil-fuel prices and positives for metals. We see no going back this time as innovation accelerates and envision a future of the world following the U.S. toward net-energy surplus," he said. According to a survey from Bloomberg published last week, investors expect that copper will be the best performing metal in 2021. According to the report, 40% of investors surveyed were bullish on copper, followed by silver. "Copper-market sentiment and prices may benefit from global economic stimulus following the Covid-19 pandemic in 2020, especially with the positive news on vaccine development," the report said. Source: kitco.com
Chilean problems are a blessing for DSM.V Chile might struggle to keep up with copper demand Tuesday April 27, 2021 05:39 The FT has reported that companies in the world's largest copper-producing country are struggling to meet demand. Diego Hernández, the president of Sonami, Chile’s national mining society thinks that it is not just the demand that could be a problem. He says that the nation's political concerns might mean that investment in copper and lithium projects could be delayed. The handling of the pandemic and the rewrite of the country’s Pinochet-era constitution are significant risks and he went on to say “If you are an investor, you probably will want to wait to see what is the result of this process instead of making investment decisions now,”. Reuters also reported that mining unions and port workers in Chile have threatened to protest over pension savings withdrawal issues. This is defiantly a situation to keep an eye on. Chilean President Sebastian Pinera recently announced the government will launch its own bill to allow the nation's people to draw more from their private pensions as mining unions threatening to protest if the government did not drop the bid. It is not clear if this is enough to settle the tensions as of yet. Morgan Stanley has also recently noted that the copper industry could benefit from the EV boom noting "Copper, a key commodity input for electric vehicles, and parts suppliers, are examples of such peripheral industries that could stand to benefit from EV growth in the years ahead.". Despite these developments, Chile's share of production slipped by 1.6% in 2020 compared with the previous 12 months. Having said that it still produces more copper than the next three countries combined. Knowing there is such a boom, last month Chile’s parliament approved a proposal to raise taxes on copper and lithium miners. The potential tax change on large producers will increase from 3% to 10%, and up to 100% of additional income if copper prices manage to reach $4.50/lb a figure that it nearly hit today. Looking at the price chart below it is clear to see how close the market is to hit the 2011 high of $4.64/lb. Source : kitco.com
https://www.barchart.com/stocks/quotes/DSM.VN/overview Barchart Technical Opinion STRONG BUY The Barchart Technical Opinion rating is a 100% Buy with a Strengthening short term outlook on maintaining the current direction. Long term indicators fully support a continuation of the trend. TrendSpotter BUY
TSX.V: DSM OTCQB: DSMTF 100% copper Fully funded Infill drilling high grade areas After Tax NPV 1.6 Billion $ American Join us
READ WHAT THE EXPERTS ARE SAYING ABOUT COPPER Uncertainty is causing China to load up on base metals, not gold Samson Li Senior Precious Metals Analyst, Thomson Reuters GFMS Goldman is calling a bull market for commodities in 2021 on dollar moves and inflation risk Copper price to rise in 2021: analysts This provides a lot of confidence,” said ABN AMRO Group senior economist Industrial Metals Markets Casper Burgering. Canaccord Genuity mining analysts expect Chinese stimulus to support copper demand. According to Bloomberg Intelligence analysts Grant Sporre and Andrew Cosgrove, assuming their scenario of 5% demand growth is in the ballpark, production guidance from the top 25 copper producers indicates the market may be in a sizable deficit this year. Copper supply expected to move into deficit in 2021, says StoneX Copper price soars to highest since 2014 on vaccine hopes Mining giant BHP's Udd speaks about the bull run in copper Copper breaks resistance to trade at levels not seen since 2011 Goldman Sachs's team of commodities analysts, led by veteran Jeff Currie, said "Copper is the new oil" in one of their latest reports. Goldman Sachs recently upgraded its 2025 price target to $15,000 per metric ton ($6.80/lb). Gianni Kovacevic: Is copper headed for its Biggest Bull Market Ever?
https://www.barchart.com/stocks/quotes/DSM.VN/opinion Overall Average: 100% BUY Overall Average Signal calculated from all 13 indicators. Signal Strength is a long-term measurement of the historical strength of the Signal, while Signal Direction is a short-term (3-Day) measurement of the movement of the Signal. 0 – 100 Current Strength Strong 0 – 100 Current Direction Strongest TrendSpotter BUY
