Copper Hits Record Highs On Trump Imposing A 50% Tariff On Copper

McEwen Inc. has a 46% interest in McEwen Copper which has one of the best copper development projects anywhere in the world.

Copper blasts off to record highs on the news that Trump is going to impose a 50% tariff on copper. America doesn’t have enough copper production to meet the growing domestic copper demand.

The copper mining industry has a challenged supply chain as can be seen in the current situation with copper smelters struggling to get enough material.

Then when you consider the growing demand from power grids needing upgrading in developed economies and for new ones in developing countries. Electric vehicles, technology, AI and robots are going to need a lot of copper, yet the world is relying on old mines that are struggling to keep up with demand.

The supply chain is broken and will only get worse as discoveries have fallen off a cliff in the past couple decades. Plus, the cupboard is pretty bare when it comes to mines under development. The supply chain is going to stay broken for many years.

My favourite copper development project is McEwen Copper’s Los Azules project in Argentina. McEwen Inc. (formerly McEwen Mining) owns 46% of McEwen Copper, major carmaker Stellantis owns 18.3%, Nuton (a Rio Tinto venture) owns 17.2% and Rob McEwen owns 12.7%.

One of the key catalysts for McEwen Copper is a feasibility study that should be out shortly. Another is they are considering taking the company public soon. Then they have also applied for the RIGI program, which is a very positive economic program in Argentina that is promoting foreign investment into the country.

The feasibility study will give them key details that financiers of new mine development will need to consider funding the construction of Los Azules.

I’m very optimistic about McEwen Copper going public as it will have a very tight share structure with the key shareholders mentioned above. In addition, generalist investors in America don’t have a lot of US listed public companies involved in copper to choose from. So it would be a wonderful way to get price discovery on the value of McEwen Copper and as an extension what that means when valuing McEwen Inc.

Argentina is going through an economic renaissance due to the economic plans of Javier Milei as Milei Magic is working to increase economic growth and decrease inflation. The RIGI program will help foreign investors, such as miners, to get certainty on taxes and other matters. Argentina is working its way through the companies applying for the RIGI program and they are eager to increase domestic copper production, which should help move McEwen Copper’s application through the process.

In addition to copper, McEwen Inc. is a junior gold miner that is increasing its production and bringing down costs of production, while also having great success with their drilling to add resources and future production.

With McEwen Inc. investors get exposure to a junior gold miner with a great growth profile, plus a world-class copper development project.

All the best,

Allan Barry Laboucan

Disclaimer

Allan Barry Laboucan is a shareholder of McEwen Inc.