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coVeR

5 Year LME Copper Warehouse Stock Level

450000

real lack of genuine projects out there 400000
that are ASX or TSX-listed and you can
probably count on one hand those that 350000
the majors want to buy, so I think M&A
has to take off.” 300000
The lack of exploration options is ben-
efitting Australian mid-tier producers, 250000
who are enjoying a remarkable run. Tons
Sandfire posted NPAT of $60.1 mil-
lion for the December half-year with the 200000
upcoming June half-year expected to
produce even more free cash thanks to 150000
the prolific performance of the DeGrussa
mine in WA. 100000
Meanwhile, Oz is bucking the trend of
troubled copper developments by seam- 50000
lessly adding the Carrapateena mine to May16 Oct16 Apr17 Sep17 Mar18 Aug18 Feb19 Jul19 Jan20 Jul20 Dec20
its existing Prominent Hill operation in
South Australia. With expansion plans ian companies ideally placed to take wards the mid-tier of copper producers.
for both assets, Oz is projected to pro- advantage of copper’s bull market and There is precedent in the local sector.
duce more than 160,000 tpa copper by investors are recognising it, sending Oz When gold began its ascent in 2016, a
the middle of the decade. shares up 35% and Sandfire 33% since set of emerging Australian mid-tiers were
The combination of consistent perfor- January 1. ready to take advantage. Northern Star
mance, growth options – Sandfire is also The momentum is likely to be sustained Resources Ltd and Evolution Mining
developing the T3 project in Botswana through both companies’ growth plans, Ltd moved in on the unwanted assets of
– and Tier 1 jurisdictions has Austral- setting each of them up for a charge to- slow-moving majors to build portfolios

“ It is tempting to focus on EVs,

but my personal opinion is that
wind and other renewables will be the
real game-changer. Last year was the
fastest year ever for new wind power
installations and it is only going to

accelerate.

Major expansion of copper smelting
facilities is expected through to 2030

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