Interview with Hayden Locke, President & CEO of Marimaca Copper

Our previous interview: https://www.cruxinvestor.com/posts/marimaca-copper-tsxmari-most-advanced-copper-developer-on-the-tsx-5269

Recording date: 1st July 2024

Copper: A Critical Metal for the Global Electrification Push

As the world accelerates its transition towards a sustainable and electrified future, copper has emerged as a critical component in this transformation. The copper market presents compelling opportunities for investors driven by robust demand projections and potential supply constraints.

Marimaca Copper, a company developing the Marimaca oxide copper project in Northern Chile, offers an interesting case study on how junior mining companies are positioning themselves to capitalize on these trends. The company is pursuing a balanced strategy of advancing its flagship project while continuing exploration efforts to potentially expand its resource base.

Hayden Locke, President and CEO of Marimaca Copper, highlights the global nature of copper demand: "The scale of transmission investment, particularly by China but also the rest of the world, is going to be the big driver of demand for copper over the next 5 to 10 years." This demand is underpinned by worldwide efforts to reduce carbon emissions, electrify transportation, and upgrade power grids.

On the supply side, challenges persist. Developing new copper mines is time-consuming and capital-intensive, often taking a decade or more from discovery to production. This dynamic could lead to a supply gap, potentially driving copper prices higher in the coming years. As Locke notes, "The only way it's going to be supplied is if the price goes up."

For companies like Marimaca Copper, this market environment presents opportunities and challenges. The company focuses on completing the definitive feasibility study and permitting process for its main Marimaca project while simultaneously pursuing exploration at its Mercedes site and other targets. This approach aims to create value through potential resource growth while advancing towards production.

Strategic partnerships play a crucial role in the capital-intensive copper mining industry. Marimaca's partnership with Mitsubishi Corp illustrates this, providing financial support and industry expertise. Such relationships can help de-risk projects and improve their chances of successful development.

Investors considering the copper sector should know the potential rewards and risks. While long-term demand projections remain strong, copper prices can be volatile in the short term. Additionally, mining projects face various risks, including potential delays, cost overruns, and geopolitical challenges.

However, the macro thematic supporting copper investment remains compelling. The metal's crucial role in renewable energy, electric vehicles, and grid infrastructure positions it at the heart of the global sustainability push. As Locke emphasizes, "This is a global phenomenon. We're not talking about one jurisdiction, we're talking about every jurisdiction, every developed jurisdiction in tandem, and that will create a wave of demand."

For investors, companies like Marimaca Copper offer exposure to this macro trend. With its balanced approach to exploration and development, strategic partnerships, and focus on a commodity with strong long-term fundamentals, Marimaca represents the opportunity available in the copper sector.

As the world continues its push towards electrification and sustainable development, copper will likely remain a critical component of the global economy, offering potential rewards for well-informed and patient investors.

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Learn more: https://cruxinvestor.com/companies/marimaca-copper

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