Turbo Charged Growth., page-8

Hi FBX,

Buying at 3.9c to close the gap would be a very good opportunity. I will have probably spent all my money on MOD by then buying all the way down !!

Woody Spoon, yes I think you are right. This rising demand, even if the uptake rates for EV's turns out to be less than the optimists are projecting, will create a huge demand surge for Copper.

[As an aside, I am seeing lots of Nissan Leaf's around my beachside community now and a phenomenal number of e-bikes]

The second part of this situation is that supply is looking very stagnant for Cu in the years ahead. There are a few giant Cu mines supplying the majority of the supply, globally, and these are subject to supply disruptions are are getting quite old and tired.

There is simply no meaningful supply being developed globally at present.

Whilst Co is the speculative flavour-of-the-month at present, the Cu market is the sector that the large generalist funds will invest in due to liquidity and size of Cu companies. Given that generalist funds are so underexposed to commodities at present, the surge could be huge.

MOD has a huge tenement package with a very unique type of geology whereby the copper is hosted shallowly (vs. porphories) but is higher grade, at 1.0 - 2.5% vs. other style shallow deposit types.

This means that MOD's current deposit, and the prospects of many more sedimentary deposits yet to be found, will be very profitable - as can be seen in the IRR.

Something that I know appeals to FBX, is that MOD has an 8% Ag kicker in its deposit, and given the Au:Ag ratio is at c. 80:1 the setup is for much higher Ag prices in the future too.

MOD will near certainly be gobbled up in the future.

A little off topic, but if you think the EV theme is genuine, then you need to consider the upstream implications of how are all these vehicles going to be powered in a "green" way - i.e. without increasing air pollution or CO2 from fossil fuel fed generation plants.

Germany's example post Fukushima shows that to keep prices stable and emissions low then U, as a baseload source of power to offset the variability of renewables, is essential.

In Germany, since they turned off the U reactors post-Fukushima, they have invested heavily in wind and solar. The result is that power prices have more than doubled and CO2 emissions have increased, due to firing up fossil fuel powered generation plants to supplement renewable generation when there is no sun/ wind.

I think MOD is an excellent way to gain LT exposure to this theme. Not something to trade, IMO. Sit and hold for the long cycle. Leigh Goehring believes that Cu will go >$7 lb during this cycle. His latest analysis (free) is well worth a read and is available at gorozen.com.

Cheers
John