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1) Low copper prices and high capital costs are presenting significant challenges for investments in new or expanded mining operations, as stated by Freeport-McMoRan President Kathleen Quirk. She noted that while copper demand is expected to double, supply development is becoming more difficult. The price of copper compared to the capital cost and time required for project development makes the economics less favorable. The International Copper Study Group predicts a global copper market deficit of 27,000 metric tons in the current year but anticipates a surplus of 467,000 tons in 2024. World refined copper production is expected to increase by 3.8% in 2023 and 4.6% in 2024. However, metal prices are under pressure due to weak demand from China and the potential for the US Federal Reserve to hike rates. As for now, three-month copper on the London Metal Exchange (LME) has declined by 0.6% to $7,903 per metric ton, with LME copper experiencing its largest weekly decline since November of the previous year. Furthermore, LME copper inventories have risen to nearly 170,000 metric tons, the highest level since May 2022, more than tripling since mid-July.
2) The Loulo-Gounkoto complex in Mali is set to maintain its position among the world's top ten gold producers. President and CEO Mark Bristow, which manages the complex, confirmed that the mine is on track to meet its production targets for this year. It's expected to produce between 510,000 oz and 560,000 oz of gold at an all-in sustaining cost ranging from $1,070/oz to 1,150/oz. Barrick manages several of the world's largest gold mines, and the company's exploration teams are actively identifying new growth opportunities in the Loulo region. Updated geological models have revealed high-priority targets with potential for significant discoveries. Mr. Bristow also emphasized Barrick's commitment to Mali, highlighting the importance of fostering "geniune partnerships" with host governments. Over its 26-year presence in Mali, Barrick has contributed nearly $10 billion to the Malian economy through taxes, royalties, employee salaries, and payments to local suppliers. This demonstrates the company's dedication to supporting the growth of Mali's mining industry while maintaining beneficial partnerships with authorities and stakeholders.