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since 2008.
Investors and analysts are betting that
prices will move higher and the sustained
rally could last well into 2020, while min-
ers ramp up zinc operations in response to
sustained demand. This will also include
discovering new greenfield sites and mov-
ing them down the production chain to
replace the resources of the major produc-
ers, providing additional opportunities for
resource investors.
Copper is also showing signs of sus-
tained demand. The Goldman Sach's
commodities team has said copper could
move as high as US $8,000/tonne by 2022.
Goldman analysts said they expected
global copper demand to rise 2.5% in 2017
and 1.8% year-on-year on average to 2022.
"In essence, we now think that global
growth has more room to run and copper
will benefit from the synchronized pick-up
in world economic activity," said analyst
Hui Shan. The broker said fears were eas-
ing about slowing growth in China – the
biggest consumer of copper.
"Although we still expect robust mine
production growth in 2018 and 2019, we
think that the risk for supply is tilted to
the downside. Historical data suggest
that disruptions tend to rise when copper
prices are higher, as higher commodity
prices give workers and governments more
bargaining power and disputes are more
likely to emerge."
Concluding, the analysts said,
"Combining our supply and demand bal-
ance forecast with our forward views on
growth and currencies, we believe the 2011-
2016 surplus market is over and copper is
poised to go higher."
Nickel has also benefited, climbing to
a two-year high on bets of a tighter mar-
ket, having its longest run in decades.
Nickel has advanced as much as 2% to
US $12,380/tonne on the London Metal
Exchange, its highest since June 2015.
As zinc, copper and nickel prices go, so
too historically have the mineral explora-
tion markets. The recent prolonged slump
in metals prices saw mineral explorers
curb investments in exploration and mine
development and as a result, there has been
