Max Resource Corp: Going Where No Copper Miner has Gone Before to Power the Green Transition
All charged up about Copper and Cesars
Fueling the Green Electric Revolution
By now, you’re probably tired of hearing about the green energy revolution, but there’s no denying how fast it’s picking up and how much airtime it’s been getting over the last few years.
According to McKinsey, 73% of the globe’s power generation is set to come from renewable energy (mostly from wind and solarp[1] and $275 trillion in spending is needed to reach net zero by 2050. That’s almost $9.2 trillion per year or ~7% of global GDP[2].
Sure, this impending energy revolution sounds exciting, but have you ever stopped to think about all the materials and resources that will be needed to actually make it happen? If you dug into it, you’d be surprised to see the monstrous ramp and shift in mineral production that must occur to support this change and the potential challenges ahead when it comes to certain inputs, namely copper.
Enter Max Resource Corp, an ambitious mineral discovery and exploration company taking big steps to help feed the globe’s appetite for copper.
Summary
👉 Drilling into the Case for Copper
👉 Max Power
👉 All Heil Cesar
👉 The Bottom Line
Drilling Into the Case for Copper
When most people think about the green energy transition, they tend to think of wind, solar, hydrogen, electric energy battery storage and maybe…Tesla. That’s only first level thinking though.
What commonly doesn’t get considered are the inputs that go into making these new energy sources possible. Copper is one of the essential minerals needed to power much of the green energy revolution, especially wind and solar. It plays a critical role in building both the technology and infrastructure for harnessing this renewable energy source and is also needed for powering electric cars.[3]
Source [4]
As a result, announced investments in new greenfield copper projects has skyrocketed since 2010.[5]
Source[6]
As you can see, if the power source is going to be anything to do with electricity, it will need copper[7]…a lot of it.
That’s alarming as the global copper shortfall in 2035 could be 10x higher than 2021.[8]
S&P estimates copper demand will nearly double to 50 million metric tons by 2035 and by 2050, demand will reach more than 53 million metric tons. That’s more than all the copper consumed in the world between 1900 and 2021.
From 2022 to 2040, copper demand is forecasted to increase by 50%.
While it’s clear we are going to need lots more copper in the future, it’s also getting harder to mine it.
Copper quality or in mining terms, “grade” has declined by 30% over the past 15 years in core mining regions (Chile) and extracting metals from lower-grade ore is more energy intensive, costly, generates more waste and results in more greenhouse gasses.
Source[10]
Since the world will clearly need a heck of a lot more copper over the coming decades and the places we are currently sourcing it from are getting worse, Max Resource is taking a different approach in looking to capitalize on this secular opportunity.
Max Power
Max Resource is an ambitious mineral exploration company backed by a highly experienced leadership team. It’s focused on advancing the discovery and extraction of copper, silver and gold across two active projects in Colombia and Peru (not Chile).
While it operates two distinct projects, the organization’s main focus is its flagship 100% owned Cesar copper-silver project that sits along the Colombian portion of the world’s largest producing copper belt.
To support its exploration goals, the firm recently secured a strategic partnership and 5% equity stake financing from billion-dollar miner Endeavour Silver, that will enable it to drive continue land expansion efforts and leaves the door open for further capital injections alongside several large institutional and retail investors.
All Heil Cesar
Despite how competitive the resource exploration and development industry is, there’s good reason to be excited about what Max has to offer. When it comes to Cesar, it’s all about location, location, location.
Operating in Colombia, there’s many political tailwinds focused on shifting mining and exploration towards the green energy revolution vs those that focus on fossil fuels[11]; specifically, coal. Additionally, unlike in other parts of the world, drilling permitted in Colombia allows companies like Max to set up drill sites anywhere (within a specific area) without having to seek individual permits following area-level permitting. This lets companies like Max drill year-round vs having to deal with permit related interruptions that are a common occurrence in other parts of the world.
The company is also set to benefit from being the first to drill in the high grade Cesar sedimentary basin, which bodes favorable topography, requires average drilling depths of only 200 M vs 1000 M comps[12] and is surrounded by existing railway lines and shipping, transport and support infrastructure left over from past coal mining projects.
In simple terms, all this means is that if Max finds the large sedimentary copper or silver deposits it thinks might exist at Cesar, you can bet many silver dollars that lots of other miners’ interest will perk up fast.
Max recently stated two new discoveries confirmed of copper and silver at depth, and its maiden drill program hit bonanza grades of 18.5% copper + 292 g/t silver over 0.8 meters.
The Bottom Line
Following several years of major achievements in terms of land entitlements/ concessions, community involvement with local landowners, promising discoveries, and the start of initial drilling activities, Max is optimistic to uncover what could potentially be the world’s largest under exploited sedimentary copper- belt (those don’t come around very often).
Near term catalysts include expansion of its landholdings, drilling program and further forays across the several sites contained in the Cesar project.
Led by an experienced management team which has executed over $5.6 B in deals in the mining space over the last few decades[13], and its recently inked partnership with Endeavor Silver, Max is cashed up and set to drill throughout 2023.
Sources
[1]https://trilogymetals.com/investors/copper-101/
[2]https://www.mckinsey.com/capabilities/sustainability/our-insights/the-economic-transformation-what-would-change-in-the-net-zero-transition
[3]https://iea.blob.core.windows.net/assets/ffd2a83b-8c30-4e9d-980a-52b6d9a86fdc/TheRoleofCriticalMineralsinCleanEnergyTransitions.pdf
[4]https://iea.blob.core.windows.net/assets/ffd2a83b-8c30-4e9d-980a-52b6d9a86fdc/TheRoleofCriticalMineralsinCleanEnergyTransitions.pdf
[5]https://iea.blob.core.windows.net/assets/ffd2a83b-8c30-4e9d-980a-52b6d9a86fdc/TheRoleofCriticalMineralsinCleanEnergyTransitions.pdf
[6]https://iea.blob.core.windows.net/assets/ffd2a83b-8c30-4e9d-980a-52b6d9a86fdc/TheRoleofCriticalMineralsinCleanEnergyTransitions.pdf
[7]https://trilogymetals.com/investors/copper-101/
[8]https://www.cnbc.com/2022/07/14/copper-is-key-to-electric-vehicles-wind-and-solar-power-were-short-supply.html
[9]https://iea.blob.core.windows.net/assets/ffd2a83b-8c30-4e9d-980a-52b6d9a86fdc/TheRoleofCriticalMineralsinCleanEnergyTransitions.pdf
[10]https://iea.blob.core.windows.net/assets/ffd2a83b-8c30-4e9d-980a-52b6d9a86fdc/TheRoleofCriticalMineralsinCleanEnergyTransitions.pdf
[11]https://www.reuters.com/article/us-colombia-mining-idUSKCN1UE1JC
[12]Management Estimates
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