Copper exploration companies such as COBRE are set to benefit from the projected increase in demand. Cobre Limited is an ASX-listed copper exploration growth company focused on the exploration and discovery of copper and new high-grade base metals deposits in Botswana and Western Australia. The Australian-based company owns 100% of extensive copper and silver exploration land in the Kalahari Copper Belt (KCB). 

Demand for copper is rising as countries across the world transition away from fossil fuels to renewable energy, with electric vehicles set to play an important role in the green transition. By 2035, copper demand could outpace supply by up to 50 million tonnes per year (Mt) according to professional forecasters. This makes COBRE well-placed to support the energy transition as a high-growth company.

Highlights

• Cobre Ltd. low-cost strategy for 2024 

• Why you should consider adding ASX: $CBE to your portfolio

• Why Copper Stocks  Matters for your portfolio Long run

About Cobre Ltd.

Who are the People behind COBRE Ltd

Cobre Limited (ASX: $CBE) has a seasoned and experienced leadership. The CEO, Adam Wooldridge is the founder of KML, a geophysicist and geologist who has played an important role in Cobre’s exploration projects over the past five years. With over 25 years of experience in Africa, the Middle East and Europe, where he has worked in exploration management and consulting positions across a variety of deposit types specialising in large-scale multi-disciplinary target generation. The Executive Chairman, Mr. Holland,  has listed five ASX-listed exploration companies and has been an executive director in multiple companies that have collectively raised over $200M+.

Cobre’s Strategy for Development and Exploration in 2024

According to its CEO Adam Wooldridge, Cobre intends to pursue a three-tier strategy; exploration of tier-one deposits with mineral giant BHP, advancing high-grade targets to ensure short-term gains, and in-situ recovery process towards scoping study. This approach involves hydrological, engineering, metallurgical tests, resource drilling, and pilot testing designed to transform projects and increase the companies’ prospects significantly. 

Meanwhile, Its Botswana projects include the Ngami Copper Project (NCP), Kitlanya West Copper Project, Okavango Copper Project, and Kitlanya East. Furthermore, Armada Exploration, through its early-stage exploration Nyanga Project, presents a compelling first-mover advantage in the exploration of magmatic nickel-copper sulphide deposits along a complex regional-scale craton boundary fault network in Gabon. Other projects include Kitlanya East in the south of Sandfire Resources Motheo production hub. This presents significant opportunities as one-third of copper discoveries since the 1950s had lead times that led to production for 30 years or more, while gold, for example, only leads to 4.5 years.

Why you should consider adding Cobre Limited (ASX: $CBE) to your portfolio 

Demand for copper is set to rise: Copper is an important metal in the contemporary world and is considered a metal of the future. From usage in renewable energy to technology, investing in Cobre Limited is more than a financial choice as you would be supporting long-term growth. 

Diversified investment Portfolio: Cobre Limited has a diversified investment portfolio, allowing it to diversify and mitigate risks, while ensuring it can serve a variety of markets at limited costs. By decentralising its operations, Cobre Limited can leverage the long lead times of copper fields and generate sustainable long-term returns for investors, whose portfolios will equally be diversified in renewable and sustainable supply chains. 

Cost-effectiveness: Cobre’s Limited in-situ recovery method offers a low operational and capital expenditure solution while being environmentally friendly, potentially producing green copper cathode on-site, which could revolutionise operations on the Kalahari Copper Belt and benefit local communities. This makes Cobre distinct from its competitors and equally reinforces its position as a potential growth stock. 

Botswana's Business Environment is supportive of mining companies

Due to the risk involved in investments in exploration and mining development, Botswana's Minerals Policy and laws expressly grant mining companies the right of first refusal to develop the mineral deposit and the right to recoup development costs. Investors are, therefore, unlikely to be locked onto projects for years if they fail.

Why you should consider adding Cobre Limited (ASX: $CBE) to your portfolio 

Demand for copper is set to rise: Copper is an important metal in the contemporary world and is considered a metal of the future. From usage in renewable energy to technology, investing in Cobre Limited is more than a financial choice as you would be supporting long-term growth. 

Diversified investment Portfolio: Cobre Limited has a diversified investment portfolio, allowing it to diversify and mitigate risks, while ensuring it can serve a variety of markets at limited costs. By decentralising its operations, Cobre Limited can leverage the long lead times of copper fields and generate sustainable long-term returns for investors, whose portfolios will equally be diversified in renewable and sustainable supply chains. 

Cost-effectiveness: Cobre’s Limited in-situ recovery method offers a low operational and capital expenditure solution while being environmentally friendly, potentially producing green copper cathode on-site, which could revolutionise operations on the Kalahari Copper Belt and benefit local communities. This makes Cobre distinct from its competitors and equally reinforces its position as a potential growth stock. 

Botswana's Business Environment is supportive of mining companies

Due to the risk involved in investments in exploration and mining development, Botswana's Minerals Policy and laws expressly grant mining companies the right of first refusal to develop the mineral deposit and the right to recoup development costs. Investors are, therefore, unlikely to be locked onto projects for years if they fail.

Technical Analysis for Cobre Limited (ASX: $CBE)

Cobre Ltd (ASX: $CBE) witnessed a significant market movement, initially marking a low of 0.650 AUD on August 29, 2022. Subsequently, the stock has choppily trended downwards with a sell-off amplified by low trading volumes, reaching 0.044 AUD in December 2023. However, the stock has risen by 43.18% year-to-date, appreciating by 10.53% over the last week. It has equally outperformed its peers such as Superior Resource Ltd (ASX: $SPQ) and G11 Resource Ltd (formerly Odin Metals Ltd) whose year-to-date and one-week performance is -84%, -14.29%, and 0.00, -4% respectively. The Cobre Ltd. could surpass its recent gains and test the 0.072 resistance point. 

Why Copper Stocks  Matters for your portfolio Long run

Why should investors be turning their focus to copper stocks like Cobre Ltd in Australia? The copper market is headed for a growth spurt over the next two years due to mining supply disruptions and higher demand. Rising demand driven by the energy transition and dollar strength will support copper prices. Meanwhile, copper prices on the London Metal Exchange last saw a record high of $10,730 per ton in March last year from $8448.50 in 2022.

This surge in copper prices is driven by demand for electric vehicles and other vital components in the clean energy transition. As copper volumes continue to rise, the market will continue to heat up, creating a favourable market for companies such as Cobre Ltd as investors increasingly take notice of the sector.

Where to Buy ASX: $CBE Stocks

Investing in ASX: $CBE  is possible through the purchase of shares  on the following platforms: 

• Interactive Brokers: Interactive broker's official website: https://www.interactivebrokers.com/en/home.php 
• CommSec: Commsec official website: https://www.commsec.com.au/ 
• eToro: eToro official website: https://www.etoro.com/login