For the past two weeks I have written to my premium subscribers to look at copper and the industrial metals as I saw deep pocketed private equity funds and billionaires such as Carl Icahn and KKR taking big bets on beaten down Dr. Copper hitting five year lows. I knew that a bottom could be forming and that we could be near the final turn. It was my first copper bet in many years.
Now it appears that the call of a bottom in copper and industrial metals could be confirmed by the recent news that Glencore is cutting global production of zinc. Copper and nickel could be next. The Commodity Giants such as Glencore are in great financial duress right now shutting down mines left and right that are losing money at these low commodity prices. They recently shut down two African Mines.
Other industrial metals most notably copper are also rising as the recent downturn in prices has forced many of the high cost mines to shut down as well as the companies could not turn a profit. The news out of Glencore over zinc is also shocking the copper market highlighting the painful effects of this commodity crash as even the giants have fallen. There is a coming supply shortage coming to the commodity markets which could be unparalleled as the major miners have been absolutely devastated in this historic downturn. Here are some recent companies I have purchased as an investment and have welcomed on my website as an advertiser. I am highly selective of companies and I believe they have exciting stories to tell to my readers.
1) Attention should be paid to Excelsior Mining (MIN.V or EXMGF) who just announced that they purchased out of receivership an adjacent Copper Mine to their Gunnison Project in Arizona and will be raising $12 million USD. The Mine comes with a working solvent extraction plant which could process solutions from Gunnison saving time and money to get into production. Commenting on the Johnson Camp Transaction, Stephen Twyerould, President and CEO of the Company, said, “This is expected to allow us to significantly reduce our upfront capital requirements and the time required for the start-up of the Gunnison Project. The Company also intends to thoroughly examine the potential of Johnson Camp, especially since this is the first time in its 130 year history that the entire Johnson Camp district has been consolidated under one ownership.”