Copper Industry Faces Structural Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
- Exploration Budget Recovery: Although exploration budgets have recovered post-2020, the period from 2015 to 2025 has seen a decline in both the number and size of major copper discoveries, limiting the industry's ability to find new deposits that could significantly impact production potential.
- Codelco's Dilemma: As the world's largest copper producer, Codelco requires approximately $5 billion annually in capital expenditures just to maintain flat production levels, facing rising operational complexity and costs due to declining ore grades and deeper mining operations.
- Supply Chain Vulnerability: According to InvAsset data, around 550,000 tons of copper production are projected to be lost or disrupted in 2025 due to labor disputes, geotechnical issues, and weather-related incidents, highlighting the fragility of supply against a backdrop of thin profit margins.
- Silver Supply Constraints: Delays and downsizing of copper projects not only affect copper supply but also impact global silver production, with spot silver prices rising over 270% in the past year, underscoring the interconnectedness of copper and silver markets.
Analyst Views on B
Wall Street analysts forecast B stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for B is 46.72 USD with a low forecast of 38.00 USD and a high forecast of 55.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
13 Buy
2 Hold
0 Sell
Strong Buy
Current: 52.170
Low
38.00
Averages
46.72
High
55.00
Current: 52.170
Low
38.00
Averages
46.72
High
55.00
About B
Barrick Mining Corporation is a gold and copper producer, which is engaged in the production and sale of gold and copper, as well as related activities, such as exploration and mine development. The Company has ownership interests in producing gold mines that are located in Argentina, Canada, Cote d’Ivoire, the Democratic Republic of Congo, the Dominican Republic, Papua New Guinea, Tanzania and the United States. Its copper mines are located in Zambia, Chile and Saudi Arabia. Its operations include Nevada Gold Mines, Bulyanhulu, Jabal Sayid, Kibali, Loulo-Gounkoto, Lumwana, North Mara, Porgera, Pueblo Viejo, Veladero and Zaldivar. Its Bulyanhulu operation is located in north-west Tanzania, over 55 kilometers (km) south of Lake Victoria and 150 km southwest of the city of Mwanza. The Jabal Sayid copper operation is located approximately 350 km north-east of Jeddah in the Kingdom of Saudi Arabia. The Lumwana copper mine is a conventional open pit operation.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
