Three Valley Copper is Poised for Growth after the Signing of U.S. Infrastructure Bill
On November 15, President Joe Biden signed into law a $1.2 trillion bipartisan infrastructure bill, unlocking important funding for key areas like transportation, broadband, and utilities. The bill has been received positively since it will focus on several areas of the economy and create jobs for people working on many areas of new construction and physical infrastructure upgrades. Copper miners around the world are set to benefit from this plan including Three Valley Copper (TSXV:TVC), a Canadian copper mining company, that is already producing high quality copper cathodes and exploring its high-potential property further.
Biggest Infrastructure Bill of the Modern Era
The move is designed to create jobs across the country by spending billions of dollars in state and local governments to repair dilapidated bridges and roads and by expanding broadband internet access to millions of Americans. The bill re-authorizes spending on existing federal public works programs and directs a new $550 billion towards water projects, power grid, and safety measures. It includes $110 billion for roads, bridges, and other projects, $66 billion for railways, $65 billion for broadband internet, and $55 billion for water systems.
Much of the bill targets electrification for infrastructure, buildings, and fleets of government vehicles. This will enable the electrification of federal fleets, the electrification and refurbishment of federal buildings, improving cyber security infrastructure, strengthening border management, investing in sustainable materials, and investing in modernizing the existing electric infrastructure around the country.
Getting Electrified
Perhaps most notably, White House officials also stated that they will build a network of charging stations for electric vehicles and help expand internet access to areas where there is little to no access in the country.
That charging network could help push electric vehicle (EVs) sales along as the country aims to reduce the amount of new fossil-fuel powered cars being sold every year. The cars, the batteries, the charging equipment, and the charging stations will all require some similar metals to be built, including significant amounts of copper.
In addition to financing renewable energy, the infrastructure bill also provides $7.5 billion for electrification of public transport and an additional $7.5 billion for charging stations for EVs. The bill is expected to drive demand for industrial metals and battery materials like copper, lithium, cobalt, nickel, and more.
Battery Metals and More
One of those metals, copper, is set to benefit from a huge boost in demand from this bill. Not only will it be needed for the electric vehicle push and associated infrastructure, but it will be required for the new wiring and internet access initiatives in the bill as well. Copper producers and refineries could also get a boost as copper wiring is a much-needed component of wind turbines, solar panels, and other green energy projects.
It’s no wonder copper is on a massive bull run that even slight pullbacks have been unable to stop. Inventories on the London Metals Exchange are consistently low, and shipping and supply chain bottlenecks are creating problems for deliveries around the world.
The copper mining companies in the middle of this maelstrom are poised for huge growth in the coming decade but could also be in for more attention in the short term as well.
The Company in the Middle
One of those companies, Three Valley Copper (TSXV:TVC), a copper exploration, development, and production company operating in Chile has just what the market needs at just the right time.
Its 91.1 per cent owned Minera Tres Valles property near Salamanca, Region de Coquimbo, Chile already produces 99.99 per cent pure copper cathodes from its existing reserves, and there are approximately 46,000 hectares to explore on the property.
The company recently announced a bought deal financing that was originally set at $10 million but was upsized to $16 million after significant investor demand. This will help fund the advancement of exploration and development at the company’s Minera Tres Valles project and for working capital and general corporate purposes.
This followed an October 20th announcement that the company had initiated a strategic review to enhance shareholder value. This could ultimately bring a number of new opportunities for the company through the end of 2021 and into 2022. The proactive management of the company’s operations is what could make it a premier choice for investors during the copper boom.
Three Valley Copper has already begun a near-mine exploration drill program at Minera Tres Valles, while simultaneously maintaining and expanding production at the mine. Existing surface infrastructure under current environmental permits will be used to conduct drilling in the first phase. This will include approximately 6,000 to 8,000 meters and $2.5 million has been budgeted for this phase of the program. When drill results are received, the Minera Tres Valles exploration team will assess and incorporate those results into the dynamic design and management of the program.
The construction and development of its underground mine is expected to be completed in January 2022. With this new source of ore coming online and growing during 2022, production at Three Valley Copper is expected to double in 2022 and triple in 2023.
The coming decade is sure to be one of huge growth for copper demand and use. As the $1.2 trillion infrastructure bill gets off the ground, producers will be scrambling to keep up. For battery manufacturers working to keep up with EV demand and charging station requirements, copper will be in short supply. This is good news for producers of 99.99 per cent pure copper cathodes like Three Valley Copper. Not only will the company have a production base to draw from, but with 95 per cent of Minera Tres Valles unexplored, the potential is high for another huge discovery at just the right moment.