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The market in 2022 has kicked off with a muted sentiment. This isn’t the free ride we had a year ago when interest rate hikes were not on the Fed’s radar. Worst-case scenarios also said that potential inflation could be transitory at worst.
That seems like forever ago.
The broader market has sputtered to start 2022. But look deeper. A little-known mining stock has stormed out of the gate, rallying as much as 55+% just 18 days into the New Year. (Source 2)
Mounting economic headwinds, including inflation, supply chain issues, and a global energy crisis, are striking fear into the people’s hearts. We aren’t blind to it. Instead of feeling sorry for yourself, consider why this copper explorer has rocketed during these times.
Beyond Alpha’s potential resiliency to inflation as a copper explorer, we could have a severe supply-demand crunch amid EV demand. The move to electric vehicles simply will not be possible without new sources of copper from companies like Alpha because of the ungodly amount of copper that EVs need.
What’s more, the recently passed massive infrastructure spending bill in the U.S. could require $200B+ worth of projects reliant on copper. (Source 1)
As a Canadian mineral exploration company focused on advancing its Indata and Okeover (“OK”) Projects in mineral-rich British Columbia, Canada, Alpha Copper has the ingredients. Both projects contain numerous drill-ready targets and geophysical anomalies. Indata is also located just 3 km from 2 of the most promising copper discoveries in Canada, Kwanika and Stardust. (Source 1)
So read on and see why Alpha Copper Corp. (CSE: ALCU) (OTC: ALCUF)could be one of the hottest companies in 2022.
As of Jan 18, 2022, from highs around the start of the year, the Dow has dipped as much as -4.41%, (Source 3) the S&P -5.01%, (Source 4) and the Nasdaq -8.49%. (Source 5)
That has simply not been the case for Alpha Copper Corp. (CSE: ALCU) (OTC: ALCUF).
Yet while skeptics may say the stock could be overdue for a cooling-off period, the data and indicators show that this may only be the start.
Coupled with copper’s potential catalysts, the stock is flashing many short-, medium-, and long-term bullish technical indicators as of Jan 18, 2022.
Some of its triggered indicators include its 20 Day Moving Average, 20 – 50 Day MACD Oscillator, 20 – 100 Day MACD Oscillator, 20 – 200 Day MACD Oscillator, 50 Day Moving Average, 50 – 100 Day MACD Oscillator, 50 – 150 Day MACD Oscillator, 50 – 200 Day MACD Oscillator, 100 Day Moving Average, 150 Day Moving Average, 200 Day Moving Average, and 100 – 200 Day MACD Oscillator. (Source 6)
Moreover, as of Jan 19, 2022, ALCU had a float of roughly 18.76M, with 38.82% of shares held by insiders. (Source 7) The stock has also seen its market cap multiply by more than 4x from 2.07M to 8.45M ever since Mar 31, 2021. (Source 7)
When you see this type of structure and makeup, and a market cap that’s seen exponential growth, any inkling of good news could cause the stock to rapidly move. Keep your eyes on ALCU as mounting signs point towards unprecedented copper demand which could provide a spark for continued vertical chart momentum.
The most recent consumer price index report revealed that inflation has reached a 40-year high. (Source 8)
Bond yields are also jumping, and as of Jan 19, 2022, the 10-year note spiked to nearly 2%, with the inflation-sensitive 2-year yield hitting 1%. This is a near 2-year high for both. (Source 9)
When markets sold off on Jan 18, 2022, UBS Global Wealth Management’s head of equities for the Americas, David Lefkowitz, said it was “all about interest rates” and that the 10-year’s surge “has big implications for the internals of the market.” (Source 9)
This reflects a Fed policy that has “overstayed its welcome” (Source 9) , contributing to the historical type of inflation we’re seeing.
Say hello to a potential copper bull market.
Traditionally, copper is seen as a strong hedge against inflation because its properties are essential for day-to-day life. It conducts heat and electricity and is malleable. It’s commonly used in electrical equipment such as wiring and motors. It is also valuable for construction (for example, roofing and plumbing) and industrial machinery (such as heat exchangers). (Source 10)
Computers and other electrical devices also use a great deal of copper, (Source 10) and copper wiring is likely powering wherever you are and behind your pipes and plumbing. (Source 11)
Yet outside of significantly outperforming the commodity it mines, Alpha Copper Corp. (CSE: ALCU) (OTC: ALCUF) may be an even better inflation hedge than the copper itself. An October 2020 Forbes article stated that “precious metals mining stocks probably provide a better inflation hedge than base metals and other commodities” and “rise with inflation but usually produce earnings even in non-inflationary times.” (Source 13)
Copper’s unique properties make it crucial for our day-to-day lives. Yet the metal could be even more vital for a sustainable future, and many consider it “the king of the ‘green metals.’” (Source 14)
Copper is an integral part of sustainable energy initiatives because of its reliability, efficiency, and performance. Its superior electrical and thermal conductivities increase the energy efficiency of countless energy-driven systems that rely on electric motors and transformers.
The same physical properties are vital in collecting, storing, and distributing energy from solar, wind, and other renewable sources.
First, let’s look at EVs. The move to electric vehicles simply will not be possible without new sources of copper. Electric vehicles use copper in charging infrastructure, cabling, drive motors, and batteries, more than double the copper of an internal combustion engine automobile. (Source 1)
Consider how much copper various types of vehicles need too: (Source 1)
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Yet, copper’s importance in the greening of the economy extends well beyond electric vehicles. (Source 1)
According to the Edison Electric Institute, the U.S. electric transmission network consists of more than 600,000 circuit miles of lines, 240,000 of which are considered high-voltage lines (230 Kilovolts and more). Copper is also a key component of transmission, which consists of structural frames, conductor lines, cables, transformers, circuit breakers, switches, and substations.
A 3 megawatt (MW) wind turbine contains up to 4.7 TONS OF COPPER. Often remote locations require extensive cabling to connect to the grid, especially offshore wind farms.
In its latest annual Electric Vehicle Outlook, BloombergNEF (BNEF) projected global sales of zero-emission cars to rise from 4% of the market in 2020 to 70% by 2040. (Source 16) BNEF also estimated EVs to be a $7 trillion global market by 2030 and a $46 trillion market by 2050. (Source 17)
Solar power generation requires 5.5 tons of copper per MW 2
Even before the $1 trillion+ infrastructure bill was passed, copper was rallying and needed for various sustainable projects. A quote from Global X ETFs stated, “cleantech and renewables projects, as well as infrastructure development, represent significant growth opportunities for copper, with substantial amounts of copper required to rebuild modern infrastructure and energy systems.” (Source 15)
Now that the bill is a law, it’s almost as if we have a shopping list of copper-based projects with billions of dollars to back it up. We could genuinely see $201 Billion spent on infrastructure projects that need considerable amounts of copper.
Yet while this all sounds good in theory there it can’t happen without sufficient copper supply
Certainly, supply chain backlogs we’ve seen have contributed to inflation. It could be contributing to a massive supply-demand crunch for copper too. We are currently in a historic supply-demand crisis that only explorers like Alpha Copper Corp. (CSE:ALCU) (OTC:ALCUF) can help solve.
Yet, there have simply not been enough new copper deposits discovered beyond supply chain issues. According to Hellenic Shipping News:
“Like gold, fewer and fewer large copper deposits are being discovered, and the time between discovery and production has lengthened over the years as costs rise. S&P Global Kevin Murphy called last decade ‘dismal’ in terms of new discoveries. Of the 224 copper deposits that were discovered between 1990 and 2019, only 16 were found in the past 10 years. Although the earth’s surface still has an abundance of the red metal, most new deposits are of low grade.” (Source 18)
This positions Alpha Copper Corp. (CSE: ALCU) (OTC:ALCUF) extremely advantageously.
Estimates from the CRU Group claim that the copper industry needs to spend upwards of $100 billion to counter an estimated annual shortfall of 4.7 million metric tons by 2030. According to commodities trader Trafigura Group, the potential shortfall could also reach 10 million tons if no new mines get built. (Source 1)
The world simply needs all the copper it can get its hands on. We have infrastructure plans, clean energy demands, and pent-up demand for electric vehicles.
$200+ billion of infrastructure projects will need unprecedented amounts of copper. Ambitious forecasts have EVs eventually taking over the roads and powering a cleaner future.
Yet to think this can all happen without a sufficient amount of copper is a joke.
If copper supply cannot keep up with this demand, watch what happens. It could pose an even more mouth-watering opportunity for explorers like Alpha Copper Corp. (CSE: ALCU) (OTC:ALCUF) rather than solely the physical metal.
Alpha Copper Corp. (CSE: ALCU) (OTC:ALCUF) could be at such an advantageous position in what’s shaping up to be a strong future for copper explorers. All you have to do is look at what its two projects in mineral-rich British Columbia, Canada, have to offer as further proof.
Indata The Indata Property comprises 16 mineral claims totaling 3,189 hectares. Situated in north-central British Columbia on the east side of Albert Lake, a 2-hour drive from the community of Fort St. James.
What’s more, is Alpha Copper has an option to earn a 60% interest on this property from Eastfield Resources Ltd. (Source 1)
Historically, the property has seen consistent results, and 40+ years of exploration and documentation indicate the possibility of a sizable copper deposit.
The Okeover (“OK”) Property comprises 11 mineral claims totaling 3,950 hectares and is situated on the south coast of British Columbia, 25 km north of Powell River’s deepwater port facilities and 145 km northwest of Vancouver. Well-established forestry roads provide access to the property giving ready low-cost access to drill crews and equipment.
Geophysical anomalies have identified numerous drill-ready targets for copper and other minerals. Located ~25Km from the pacific tidal port, North Lake Zone’s historic resource specifically boasts 86.8 million tons and grading 0.31% copper.
Historic results also show strong exploration potential. Several high-grade drill targets are already identified and fully permitted. Additionally, porphyry targets exist
Several developed and fully operational mines also work nearby, including Mt. Milligan, Granisle, and Bell, which have established local expertise, manpower, and equipment resources within the region.
Citibank put it best: “prepare for a decade of Dr. Copper on steroids.” (Source 20)
As Alpha Copper Corp. (CSE: ALCU) (OTC:ALCUF)) continues to see momentum, mounting potential catalysts have it firmly set up for the short and long term.
Its projects have game-changing potential in this environment of macro-level economic, environmental, and infrastructure-related catalysts. It is right at the core of a supply-demand squeeze that could truly position it perfectly for a bonanza of a rally.
We’re kickstarting 2022 at an exciting time for stocks like ALCU. The broader market appears sluggish, and investor sentiment is primarily “meh.” Yet it’s fascinating to see how and why ALCU has come charging out of the gates in 2022.
There is plenty of optimism around copper explorers as not only an inflation hedge but a vital component towards a sustainable future. Yet we don’t have enough copper supply to meet demand, clearly. We clearly need all the copper we can get our hands on and fast and cannot do it without companies like ALCU ALCUF.
Definitely keep your eyes peeled on Alpha Copper (CSE: ALCU) (OTC:ALCUF) ASAP. Its potential is too mouth-watering to ignore.
Source 1: https://alphacopper.com/wp-content/uploads/2022/01/PPT_AlphaCopper_V7.pdf
Source 2: https://www.barchart.com/stocks/quotes/ALCU.CN/interactive-chart
Source 3: https://schrts.co/FWHcMRvt
Source 4: https://schrts.co/ZaBTZven
Source 5: https://schrts.co/KaQNgWaI
Source 6: https://www.barchart.com/stocks/quotes/ALCU.CN/opinion
Source 7: https://finance.yahoo.com/quote/ALCU.CN/key-statistics?p=ALCU.CN
Source 8: https://www.wsj.com/articles/inflation-is-near-a-40-year-high-heres-what-it-looks-like-11639737004
Source 9: https://finance.yahoo.com/news/the-era-of-cheap-money-overstays-its-welcome-morning-brief-100752701.html?fr=yhssrp_catchall
Source 10: https://www.rsc.org/periodic-table/element/29/copper
Source 11: https://www.copper.org/education/c-facts/electronics/print-category.html
Source 12: https://www.copper.org/publications/pub_list/pdf/A6191-ElectricVehicles-Factsheet.pdf
Source 13: https://www.forbes.com/sites/billconerly/2020/10/17/its-time-for-inflation-hedges-consider-gold-mining-stocks-and-farmland/
Source 14: https://www.mining-journal.com/copper-news/news/1364930/%E2%80%9Ccopper-is-the-king-of-the-%E2%80%98green-metals%E2%80%99%E2%80%9D
Source 15: https://www.globalxetfs.com/whats-driving-coppers-rally/
Source 16: https://about.bnef.com/electric-vehicle-outlook/
Source 17: https://www.mining.com/ev-sales-expected-to-rise-by-2040-push-battery-metals-demand-report/
Source 18: https://www.mining.com/web/the-race-for-copper-the-metal-of-the-future/
Source 19: https://www.cnn.com/2021/07/28/politics/infrastructure-bill-explained/index.html
Source 20: https://www.mining-journal.com/copper-news/news/1342749/%E2%80%9Cprepare-for-decade-of-dr-copper-on-steroids%E2%80%9D
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