Base Metals
September 15, 2023

Peru's Copper and Tin Sector Soars Higher with Estimated $2 Billion Investment from Minsur Mines

The Worlds seventh most productive copper mine is expected to increase its operations and productions within the next seven years.

Peru, the worlds’ second biggest copper producer will see its’ operations in the aforementioned metal, as well as in tin, increase at a significant rate due to Minsur (MINSURI1.LM) investing around $543M in Justa Mine, an underground project jointly owned by the Chiliean firm and mining company Copec (COPEC.SN).

Additional Initiatives to Enhance Minsurs Investment Portfolio

Further plans are also set in motion to invest in the underground mine’s processing plant as well as improve general standards of the mine camp according to Minsur’s corporate affairs executive Gonzalo Quijandria. The mine played a big part in the production of copper, making it the seventh most productive copper mine according to the companies annual reports. Its life expectancy is expected to be around 15 years.

It is estimated that the Peruvian mine will invest around $2 Billion over the next five years in it’s copper and tin operations – with $462M  going to it’s tin production line, $100M beign invested in tin exploration projects in the country and another $342M in the modernization of Minera Raura, its modern polymetallic producer.

A Statement from the Government of Peru

Despite these amounts differing from the Peruvian Energy and Mines Ministers’ official breakdown of figures from the company the only response from Ministry regarding the mine is its proposed expansion with the Mina Justa Subterrenea Project. A project which will not only extends the mine's extremely functional life but is estimated to increase its reserves by 30%. The Peruvian Mining Ministry was quoted from Reuters stating that "The MinaJusta Subterrenea Project will be the second-largest and most modern underground mine in Peru."

fig. 1: financial chart illustrating the annual price trajectory of copper

Copper and Tin: The Unsung Precious Metals

The allure of precious metals has been captivating investors and collectors for centuries. It can be traced back from the Aztecs to the Romans and the Global Gold Rush that occurred in the 19th Century. These resources have long been regarded as symbols of wealth and financial security however the ever-present role that Base Metals play in our day-to-day lives and shouldn't be overlooked. Copper is considered a semi-precious, malleable metal with it being useful in areas of electronics, plumbing and even consumer and health products. The Ministry of Economics and Finance recently announced that they have lowered 2023 and 2024's economic growth forecast - due to power investment in the copper industry due to social unrest and the El Niño weather phenomenon.

Minsur (MINSURI1.LM) currently has 961 Million shares outstanding, trading at $3.87 per share giving it a market capitilisation of $3.72 Billion . The company is doing extremely well, with a net profit of 496,24Million and doesn’t need to go back to the market anytime soon. COPEC (COPEC.SN) has an estimated 1.3 Billion shares outstanding, trading at $6 001 per share, sitting at a market capitalization of $7.86 Trillion. Their finances are looking extremely healthy, netting a profit of $1.47B making it highly unlikely that they would go back to the market.

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