Copper Deficit To Reach 4 Million Tons By 2030, Analyst Predicts: Mining, Electrification Plays Set To Benefit
Portfolio Pulse from Surbhi Jain
JPMorgan analyst Patrick Jones predicts a significant copper deficit by 2030, driven by increased demand from electric vehicles and renewable energy. Despite potential substitution with other materials, the deficit is expected to persist. Key mining companies like Teck Resources and Rio Tinto are poised to benefit, while electrification plays like ChargePoint Holdings could also see gains.
September 12, 2024 | 12:42 pm
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NEUTRAL IMPACT
Southern Copper Corp is viewed cautiously by JPMorgan due to its expensive valuation and idiosyncratic risks.
Southern Copper Corp is mentioned as a company with more expensive valuations and idiosyncratic risks, leading to a cautious outlook.
CONFIDENCE 75
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
ChargePoint Holdings is expected to benefit from increased electrification, a key driver for copper demand.
ChargePoint Holdings is mentioned as a company that could benefit from the electrification boom, which is a strong driver for copper demand.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
Rio Tinto is identified as a key diversified miner with significant copper exposure, expected to benefit from the predicted copper deficit.
Rio Tinto is mentioned as a key diversified miner with over 20% of its EBITDA from copper by 2025, making it well-positioned to benefit from the expected copper deficit.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Teck Resources is highlighted by JPMorgan as a favorable investment due to its exposure to the copper market, which is expected to face a significant deficit by 2030.
Teck Resources is directly mentioned as a favorable investment due to its exposure to the copper market, which is expected to face a significant deficit. This positions the company to potentially benefit from rising copper prices.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80