Issue link: http://resourceworld.uberflip.com/i/912601
28 www.resourceworld.com D E C E M B E R / J A N U A R Y 2 0 1 8 a dearth of investments in the production and exploration for many commodities, particularly coal, copper, and other base metals. Given the long lead times required to bring new projects online, along with China curbing the production of a number of commodities including coal, analysts expect that supply constraints will sup- port significant exploration expenditures in 2018. The electrification economy is also likely to play a role in metals prices and mineral exploration investment. Traders have already seen an impact on lithium and cobalt explorers, some of which have seen their stock prices soar the past couple of years. According to a report by consul- tancy IDTechEx, commissioned by the International Copper Association, the increase in demand for electric cars and buses will raise copper demand 185,000 tonnes in 2017 to 1.74 million tonnes in 2027. Lithium, cobalt, graphite and manganese used in batteries will also see demand. Markets have responded and are expected to continue to climb as supply gets squeezed further. Cobalt has surged 70% on the London Metal Exchange this year, after jumping 37% in 2016. Lithium prices have extended gains in recent years. Copper is also up 14% in 2017 on signs of resurgent economic growth, particularly in China. Even lead prices have benefited, up 17% this year while lightweight metals such as aluminum are replacing steel to allow cars to travel further on less power. Demand has already expanded by about 1.6 million tonnes, or 2.7% of global out- put, from 2013 to 2016 in a trend that's likely to accelerate. Aluminum is up 14% this year as rising use by auto makers has run into supply curbs in China, pushing the market into deficit. What's not to like about the perfect storm? Supply and demand is pushing metals prices higher and this will ulti- mately trickle down to the exploration sector where new metal discoveries will be necessary to fill demand. "Investor appetite has been increasing since last summer," says Preston when the smart money got positioned in the early financings and money raises. "Contrarian institutional funds have been positioning themselves for some time now, and some of the retail money is starting to flow back into the markets." Preston suggests there is still a lot of room to grow. "Before the funds and retail investors are actually in the markets, they're working out the best entry strategy and getting ready, and that certainly seems to be the mood music in the market." All indications are it's a good time for investors to position for the bull metals market ahead, but they should be pre- pared to play a waiting game for the most benefits to flow their way. n Leading Uranium Discovery In Argentina • Significant New Uranium-Vanadium Discovery • Drill intercepts of up to 3,136 ppm U 3 O 8 over one metre • 269,000-hectare Amarillo Grande project spans a 140-kilometre long trend • Expansion potential along trend and at depth • Potential to be a domestic supplier to the growing Argentina nuclear industry blueskyuranium.com info@blueskyuranium.com (604) 687-1828 TSX.V: BSK OTC: BKUCF