Video News/Digging Deep

Nicole Adshead-Bell, Director of Cupel Advisory, says the rising cost of building new copper supply is strengthening the long-term case for higher prices. Speaking with Kitco Mining’s Digging Deep, Adshead-Bell pointed to major spending at Freeport-McMoRan’s Bagdad mine and Resolution Copper, arguing that the incentive price for new production is now “materially higher than $6.” She also highlighted water access, declining grades and mounting problems at Codelco as constraints on future supply. In gold, Adshead-Bell said higher prices are supporting brownfield growth but are unlikely to eliminate the need for further consolidation. She also examined pressure at West Red Lake Gold Mines following operational misses and weaker guidance, saying companies build “that rarest commodity in our industry, which is trust” by delivering what they promise.