COPPER Boom Incoming: 'Very Strong' Future Amid Global Demand Surge

Why It Matters

A robust Santo Tomas development could help close the looming global copper deficit, supporting the energy transition while offering investors a high‑margin, low‑risk exposure to the metal’s price upside.

Key Takeaways

• Copper prices near $6/lb, bullish outlook for next decade.
• UBS forecasts $15,000/ton copper, highlighting supply deficit by 2027.
• AOKO’s Santo Tomas project promises 108k tons copper annually.
• Recession could modestly curb demand, but copper remains resilient.
• Security risks in Mexico deemed low around Santo Tomas district.

Summary

The interview with Ian Graham, CEO of AOKO Resources, centers on the surging copper market and the company’s flagship Santo Tomas project in northwestern Mexico. Current copper prices hover around $6 per pound, and analysts, including UBS, project prices could climb to $15,000 per tonne by 2027, driven by a widening supply deficit of over half a million metric tons. Graham emphasizes that strong pricing will lower cutoff grades, unlock existing resources, and spur new development, positioning Santo Tomas to produce roughly 108,000 tonnes of copper equivalent per year over a 23‑year mine life. The project’s preliminary economic assessment shows a net present value near $1.5 billion against an initial capex of $1.1 billion, with low strip ratios and high‑grade early ore, making it financially compelling. When asked about macro risks, Graham downplays recessionary impacts, arguing copper’s role as an economic engine makes its demand relatively inelastic. He also addresses security concerns in Mexico, noting that the Santo Tomas district has experienced minimal cartel activity for years, and the company has bolstered local partnerships and governance to mitigate any residual risks. Overall, AOKO’s accelerated development timeline reflects confidence that elevated copper prices will persist, encouraging capital investment and potentially narrowing the projected supply gap. The project’s strong economics, local stakeholder alignment, and modest security exposure position it as a key contributor to future copper supply.

Original Description

Ian Graham, President of Oroco Resource Corp. (OTCQB: ORRCF | TSX-V: OCO) sees a myriad of drivers poised to send the copper price soaring higher and he gets into the weeds on supply-demand dynamics, recent price action, long term forecasts, and much more. Ian also explains how Oroco Resource fits into the picture, with the second phase of their drill program at their flagship Santo Tomás project currently underway.

Oroco Resource Website: https://orocoresourcecorp.com

Follow Oroco Resource on X: https://x.com/OrocoCorp

Disclaimer: Commodity Culture was compensated by Oroco Resource Corp. for producing this interview. Jesse Day is not a shareholder of Oroco Resource Corp. Nothing contained in this video is to be construed as investment advice, do your own due diligence.

00:00 Introduction

00:33 Catalysts Driving Copper

04:09 UBS Upgrading Copper Forecast

07:01 Could a Recession Derail Copper?

08:53 Security Concerns in Mexico

12:41 Overview of Oroco Resource

18:41 Team Behind the Company

21:31 Phase 2 Drill Program

24:05 Cash Position

25:44 Final Words on Oroco Resource