Locksley Resources (ASX:LKY)
The global economic recovery, coupled with the mass adoption of lithium batteries in the EV sector, has seen copper rally as much as 120 per cent from the crash of March 2020.
Copper is heavily used in the manufacturing of a wide range of goods, and the strong demand for the metal is perceived as a sign of economic health. Hence the nickname ‘Dr Copper’.
The outlook is extremely strong, says Barclay Pearce Capital equities trader, Joseph Raad. “EVs contain approximately four times as much copper as conventional cars,” he says.
“2020 saw the global electric car stock reach 10 million units, a 41 per cent increase from 2019, and a conservative EV outlook by 2030 suggests that such stock will reach approximately 150 million vehicles and account for 7 per cent of the global vehicle fleet.”
The significant outpace in demand has left many analysts forecasting copper market deficits amid further declines in inventories over the coming years. The price of copper could soar above $US20,000 per tonne, says Raad, up from a current price of ~$US9400/t.
The 470km2 ‘Tottenham’ copper gold project in NSW is a historic site, largely underexplored by modern standards.
The recently listed stock has set an initial exploration target at the ‘Carolina’ and ‘Mount Royal’ deposits of 90,600 gold ounces and 86,100 tonnes of copper.
Early drilling priorities include upgrading this potential project resource to JORC 2012 standards and extending it with immediate exploration.