In anticipation of a more promising year for the copper market in 2024, American Pacific Mining Corp’s CEO, Warwick Smith, foresees a positive shift as demand continues to outpace diminishing supply. Following a lackluster 2023, Smith, in an exclusive interview with Kitco News, emphasized that despite gold’s allure, copper is poised to command greater attention due to persistent supply challenges.
The diversified focus of the mining company, particularly on polymetallic resources, allows for a balanced approach without favoring one metal over the other. Smith emphasized the enduring importance of gold while expressing a current preference for copper, citing its pivotal role in the ongoing green revolution.
Gold will always hold significance for us; however, in the current landscape, copper emerges as the frontrunner. This dominance is expected to persist for some time, given the pivotal role copper plays in propelling the green revolution,” emphasized Smith. He highlighted the unprecedented demand for copper in fueling this transformative shift. If the green revolution is to materialize successfully, copper will undoubtedly spearhead the charge. Additionally, we remain committed to our core values, ensuring that our expertise extends to various sectors, including those seeking to sell gold.
Smith underscored the escalating demand for copper driven by the electrification trend, asserting that meeting future demand while aiming for carbon neutrality by 2050 requires tripling the cumulative copper production from the beginning of time within the next two decades. He warned of an impending copper crisis within the next decade, signaling a recognized challenge that many are hesitant to acknowledge.
The company’s strategic emphasis on base metals is proving successful, notably with the development of its Palmer project in Alaska—a high-grade volcanogenic massive sulphide (VMS) deposit. Recent results from the 2023 drill program have revealed substantial copper mineralization, surpassing expectations.
Peter Mercer, Senior Vice President, Advanced Projects, commented on the positive outcomes, stating, “The final assay results from Palmer’s 2023 resource definition drilling have exceeded expectations with tremendous copper grades and aggregate metals values over significant widths.”
American Pacific’s collaboration with Dowa Metals & Mining on the Palmer VMS project involves a $20 million exploration investment. Simultaneously, partnerships with Rio Tinto for the Madison property in Montana ($30 million exploration investment) and Centerra Gold Inc. for the Ziggurat Project in Nevada underscore the company’s commitment to diverse and promising ventures.
While acknowledging the challenges faced by the mining sector in 2023 due to subdued commodity prices, Smith highlighted American Pacific’s resilience, attributing it to substantial partnerships. He revealed that the company anticipated investing $36 million in exploration and development during 2023.
Smith expressed optimism regarding market dynamics, anticipating an influx of investor capital as commodity prices rise. The mitigation of risk, coupled with the allure of junior exploration companies, is expected to draw investors back into the market. Furthermore, Smith foresees an uptick in mergers and acquisitions, especially with financially constrained companies possessing valuable projects ripe for acquisition.
Conclusion
American Pacific Mining Corp’s CEO, Warwick Smith, anticipates a robust year for the copper market in 2024, emphasizing copper’s pivotal role in the ongoing green revolution and persistent supply challenges.
The company’s strategic focus on polymetallic resources, exemplified by successful projects like Palmer in Alaska, showcases a balanced approach to mining. Collaborations with industry giants like Dowa Metals & Mining, Rio Tinto, and Centerra Gold Inc. underscore American Pacific’s commitment to diverse ventures.
Despite challenges faced by the mining sector in 2023, the company’s resilience and substantial investments in exploration position it as a key player in the evolving mining industry landscape.
Smith’s optimism about market dynamics, an anticipated influx of investor capital, and a rise in mergers and acquisitions further solidify American Pacific’s prominent role in shaping the future of the copper market.
