Pierre Lassonde: A "renaissance" is coming for this asset, demand will triple
(Kitco News) - A very clear trend is emerging for investors, one that is intricately tied with the electrification of the world. With this trend, one commodity has proven to be indispensable, according to Pierre Lassonde, chairman emeritus of Franco-Nevada.
"The greening of the world is going to be a renaissance of copper mining, and I don't think it has clued in with the governments and the environmental groups, but the intensity of copper use going forward will essentially triple. Over the next forty years, we're going to have to triple the production of copper and when you look at where we are today, and the number of deposits we have, a lot of them are on their last legs," Lassonde told Michelle Makori, editor-in-chief of Kitco News.
Lassonde co-founded Franco-Nevada in the early 1980s, bringing the royalty business model to the precious metals industry.
After stepping down from the Board of Franco-Nevada in 2020, Lassonde continues to invest through his family office, Firelight Investment LLC, in a variety of mining projects, including Foran Mining, a copper-zinc deposit, Orla Mining, Prime Mining, and Marathon Gold.
What makes copper unique is not only its properties as an electrical conductor, but also the fact that it is difficult to substitute, Lassonde said.
"There is no choice. That's the incredible situation that we're in. If you want a de-carbonized world, the energy that we're using, which is today petroleum-based, carbon-based, will have to be electricity based, and the only way to carry that electricity is copper. There's no other way. There's nothing else in the world. If you want a greener world, you're going to have to accept that you're going to have far more mining in the world," he said.
On mining jurisdictions, Canada stands to benefit greatly from the expansion of copper deposits, Lassonde noted.
"Canada is the second largest land mass in the world. Where do you find deposits? On land. So, Canada is going to be the center of mining for the next 50 years like you have never seen before," he said.
Lassonde is long-term bullish on precious metals. For his price forecast for gold and silver, watch the video above. Follow Michelle Makori on Twitter: @Michelle Makori