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Josemaria Resources Inc. (TSX: JOSE) (OTC: JOSMF) Rapidly Developing New Copper-Gold Project in Argentina as Copper Demand Projected to Rise
January 21, 2021

Josemaria Resources Inc. (TSX: JOSE) (OTC: JOSMF) Rapidly Developing New Copper-Gold Project in Argentina as Copper Demand Projected to Rise

  • Industry report suggests demand for copper will increase nine-fold due in part to increased production of Electric Vehicles
  • S&P analysts predict copper shortages in coming years
  • Josemaria is one of world’s few readily developable copper-gold projects
  • Recent feasibility study concluded that Josemaria is robust, low-risk project with significant yield potential

As one industry report suggests that the increased production of electric vehicles (“EVs”) will send copper demand up nine-fold (https://ibn.fm/6dyXW), S&P analysts predict a looming copper deficit in the coming years (https://ibn.fm/0i7iV). While market forces continue to exert upward pressure on the price of copper, Josemaria Resources (TSX: JOSE) (OTCQB: JOSMF), a Canadian natural resources company based in Vancouver, British Columbia, continues to focus on its Argentine project – one of the few readily developable copper-gold projects in the world.

Copper has been used to conduct electricity since the invention of the electromagnet in the 1800s and is integral to the production and operation of EVs. A single car can contain up to 6 kilometers of copper wiring along with a substantial amount of copper in its windings, rotors and battery

As government mandates and subsidies continue to ramp up demand for EVs on a global scale, the demand for copper seems likely to increase in kind.

“Demand for electric vehicles is forecast to increase significantly over the next ten years as technology improves, the price gap with petrol cars is closed and more electric chargers are deployed,” noted IDTechEx Senior Technology Analyst Franco Gonzalez. “Our research predicts this increase will raise copper demand for electric cars and buses from 185,000 tonnes in 2017 to 1.74 million tonnes in 2027.”

Despite this increase in demand, the market for copper may not respond accordingly due to severe shortages, suggests a report by S&P Global Market Intelligence. “Beyond 2020, we forecast that consumption will outstrip production over the period to 2024, resulting in a growing refined market deficit and increasing copper prices,” said S&P Global Market Intelligence commodity analyst Thomas Rutland. “Refined production output will be hindered during this period by slowing mine production growth rates unless there is significant investment in the copper project pipeline.”

In line with expected market demand, Josemaria Resources is working rapidly to develop its flagship Josemaria Copper-Gold Project, located in the San Juan Province of Argentina. The company recently announced the results of an independent feasibility study that concluded that the property is a “robust, rapid pay-back, low-risk project” with the potential to yield an average annual metal production of 136,000 tonnes of copper, 231,000 ounces of gold and 1,164,000 ounces of silver (https://ibn.fm/kCsLF).

“We are extremely pleased with the results of the Feasibility Study at Josemaria, which indicates that this is one of the very few readily developable copper-gold projects in the world today,” said Josemaria Resources President and CEO Adam Lundin. “We believe that Josemaria is perfectly positioned to commence production by mid-decade, meeting rising copper demand from a rapidly electrifying global economy.”

Josemaria Resources is a Canadian natural resources company based in Vancouver, British Columbia. The company is part of the Lundin Group of companies, a conglomerate of 13 business entities operating in the mining, oil and gas and renewables sectors around the world.

For more information, visit the company’s website at www.JosemariaResources.com.

NOTE TO INVESTORS: The latest news and updates relating to JOSMF are available in the company’s newsroom at https://ibn.fm/JOSMF

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