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Investors Will Look Back And See This Was The Time To Invest In Copper - Mining CEO

Kitco News

(Kitco News) - Copper prices continue to hover at a one-year low, but one mining CEO said that now is the time to jump back into the space to take advantage of he sees as a long-term bull market.

Luquman Shaheen, CEO and president of Panoro Minerals

In a recent telephone interview with Kitco News, Luquman Shaheen, CEO and president of Panoro Minerals noted that while economic uncertainty is driving speculative fears in the copper market, the fundamental outlook continues to support long-term growth.

“We are seeing an overreaction due to an overabundance of caution from investors,” he said. “Nothing fundamentally has changed in the copper market. A lack of new copper supply is leading us to an imbalance in the marketplace and that hasn’t changed in the last couple of weeks.”

Analysts have noted that growing trade tensions between the U.S. and China are creating uncertainty surrounding global growth. A downturn in global economic expansion is traditionally negative for copper as demand is reduced. Global growth fears have caused copper prices to fall 17.5% in the last two months. Comex high-grade copper futures last traded at $2.73 an ounce.

While Shaheen said that he couldn’t rule out a further drop in the price, he noted that the currency environment is an attractive entry point for long-term investors.

“I don’t know how these trade issues will be resolved but I think these are just short-term issues dominating the market,” he said. “I think investors will look back on this period as the perfect time to buy.”

Shaheen stated that the current market environment is not impacting his company’s plans to continue to develop its Cotabambas project in southern central Peru this year. He pointed out that the company is fully funded through to 2020 to complete its current exploration program. The company is planning to drill 8,000 meters in 2018 and in 2010.

Shaheen added that the company is also confident that they will be able to find a buyer and a partner for its ANTILLA PROJECT, its second Peruvian property. He noted that while the market doesn’t look very attractive, larger producers will be forced to buy projects to replace dwindling supplies.

Shaheen highlighted that being in Peru could be a major selling advantage for the company.

“In Peru copper projects get build. That is a huge advantage in this market,” he said. “In Southern Peru we have the infrastructure and capacity to support the mining sector. I would challenge anyone to find another place in the world that will meet all of these criteria.”

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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