Commodity Culture

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

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.