The demand for copper is surging due to a confluence of factors.
The transition to a clean energy future lies at the heart of this growth.
Copper, a superb conductor of electricity, is vital for renewable energy technologies like wind and solar power, as well as electric vehicles.
While copper deposits exist, extracting them efficiently is becoming more challenging.
Existing mines are grappling with declining ore grades, meaning they're pulling out less copper with each ton of rock.
Additionally, the permitting process for new mines can be lengthy and complex, further hindering the ability to ramp up production quickly.
This mismatch between growing demand, fuelled by the energy transition and electric vehicles, and stagnant or even declining supply is a cause for concern, potentially leading to copper price hikes and shortages in the future.
Companies are already positioning themselves for a copper future.
Recent moves by BHP (ASX:BHP) to acquire Oz Minerals as well as its pitch to Anglo American (JO:AGLJ) signals a growing appetite for significant copper resources and copper focused miners.
Strike while the copper is hot
Located in the pro-mining and geographically significant jurisdiction of the Philippines, the MCB Copper-Gold Project of Celsius Resources Ltd (ASX:CLA, AIM:CLA) promises to be a gamechanger.
The project, which was recently granted a 25+ year mining permit by the Philippines Government, boasts a classic copper-gold mineralisation style, with a particularly exciting high-grade core representing nearly 30% of the total resource.
It is shaping up to be a significant contributor in a market hungry for copper.
A recent feasibility study indicates strong financials with a payback period of just over two years based on current copper prices, which promise to improve further as demand for copper exceeds supply.
Meanwhile, the significant untapped potential within the total resource estimate hints at even greater value in the future.
MCB Copper-Gold Project resource by the numbers
Investors seeking exposure to the booming copper market are waking up to the potential of the MCB Copper-Gold Project.
With regulatory approvals now ticked, the project is poised to benefit from a surging copper price and with a comparatively low share price by its peers, it presents plenty of upside for investors.
MCB Project stacks up against peers
While many copper projects grapple with declining ore grades, the MCB deposit boasts a high-grade core, translating to a larger amount of copper extracted per tonne of rock mined.
This means lower production costs and stronger profitability.
Access to key export infrastructure and proximity to the booming Southeast Asia manufacturing powerhouses of China and India, makes the project an attractive local resource.
"What an exciting time to join Celsius,” executive director Mark van Kerkwijk said.
“The team has navigated the permitting process in record time, and serious discussions on project funding are well underway, setting the stage for our transition from explorer to developer.
“Once operational, the MCB project is expected to deliver substantial financial and community benefits for many decades to come."
Overall, the MCB project represents strong potential as a profitable and long-lasting copper-gold mine.
With its high-grade core, attractive financials and significant upside potential as the copper price surges, Celsius Resources’ MCB Project is poised to be a major copper resource.