{"id":1202547,"date":"2020-08-19T13:47:14","date_gmt":"2020-08-19T18:47:14","guid":{"rendered":"https:\/\/resourceworld.com\/?p=59420"},"modified":"2020-08-19T13:49:33","modified_gmt":"2020-08-19T18:49:33","slug":"copper-trades-above-us3-lb-on-rio-tinto-guidance","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1202547","title":{"rendered":"Copper trades above US$3\/lb on Rio Tinto guidance"},"content":{"rendered":"

By Peter Kennedy<\/p>\n

Rio Tinto Plc<\/strong> [RIO<\/a>-NYSE, ASX, London] on Wednesday August 18 cut its full year copper production guidance for the second time this year, a move that has helped to push the price of the red metal above US$3 a pound.<\/p>\n

US$3 a pound has been a major inflection level for copper over the past decade.<\/p>\n

Rio Tinto is a leading copper producer with a portfolio that includes the Oyu Tolgoi mine in Mongolia and the Kennecott operation in the U.S. The company reduced its refined copper outlook for fiscal 2020, citing a delay in restarting a smelter at the Kennecott (Bingham Canyon) mine in Utah, which has been in production for over 75 years.<\/p>\n

The Anglo-Australian miner said the delays in restarting the smelter at its Kennecott mine, were due to planned maintenance and the company expected it to be running within two months. Full-year refined copper production is now expected to be between 135,000 tonnes and 175,000 tonnes. That is below the previous guidance range of 165,000 tonnes and 205,000 tonnes.<\/p>\n

Adding to the tightening physical market, London Metal Exchange warehouse stocks are back at lows not seen since 2008 and before the global financial crisis, said Scotiabank in a research report.<\/p>\n

\u201cBack then, LME copper was trading at the US$8,900 per tonne level, which makes today\u2019s price look relatively cheap in comparison,\u201d Scotiabank said.<\/p>\n

Not surprisingly shares of a number of high-profile copper producers reacted positively to the news<\/p>\n

First Quantum Minerals Ltd. <\/strong>(FM<\/a>-TSX) shares rose 4.74% or 60 cents to $13.27 on volume of just over one million. The shares are currently trading in a 52-week range of $14.12 and $4.71.<\/p>\n

First Quantum is a diversified mining company that is engaged in the production of copper, nickel, gold and zinc. It has operating mines in Zambia, Finland, Turkey, Spain and Mauritania.<\/p>\n

Lundin Mining Corp.<\/strong> [LUN<\/a>-TSX; LUMI-Sweden] advanced 0.24% or $0.02 to $8.19 on volume of 588,313 to trade in a 52-week range of $8.59 and $4.08.<\/p>\n

Lundin is a diversified Canadian base metals mining company with operations in Chile, the United States, Portugal, Sweden and Finland, primarily producing copper, nickel and zinc.<\/p>\n

Aside from its traditional applications in electronics and construction, copper promises to play a key role in the transition to a low-carbon economy. As a result, global demand for copper is set to grow 1.5%-2.5% annually, driven by electrification and increasing requirements for renewable energy, Rio Tinto has said.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Peter Kennedy Rio Tinto Plc [RIO-NYSE, ASX, London] on Wednesday August 18 cut its…<\/p>\n","protected":false},"author":41,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[4214,4215,622],"tags":[33],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1202547"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1202547"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1202547\/revisions"}],"predecessor-version":[{"id":1202548,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1202547\/revisions\/1202548"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1202547"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1202547"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1202547"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}