What is the future of copper? How closely linked is the future of oil and copper? And…is car sharing the inevitable future that has already arrived? This episode we tackle big questions with our guest Gianni Kovacevic, a public speaker, the CEO of Copperbank and author of “My Electrician Drives A Porsche?”.
Gianni lays out important reasons on why the demand for copper and electricity will continue to increase including the new spending classes from emerging markets who will inevitably consume more electricity and as a result more copper will be in demand. He paints a clear and vivid picture how copper mining has been held back by a lack of innovation for the last 40 years to major leaps such as fracking in the oil sector, by lower grade deposits being discovered, and by discoveries being in more remote areas that lack infrastructure to develop mines. Gianni believes the combination of increased demand and industry challenges is a clear indicator that copper prices will rise as oil will slowly decline.
One massive example that supports his outlook is the recent ride-hailing and car-sharing venture between Daimler and BMW. This massive undertaking by the two companies has implications of changing or capitulating to market demand. The shift to mobile service by one of the world’s largest car manufacturers lays the groundwork for a new generation of customers, people who need the convenience of driving multiple types of vehicles without the need to own one themselves. For example “the venture has five different operations: Reach Now, offering journeys across multiple modes of transport; ride-hailing through Free Now; ticketless parking under Park Now; charging services under Charge Now; and car-sharing under Share Now.” And… as we move towards driverless cars and copper intensive “inductive pad” chargers, the demand for copper will take yet another leap Gianni believes.
For years Gianni has studied the copper and energy industry, he has traveled Europe, Canada, and the USA in a Tesla, he leads a company (Copperbank) that buys land assets with copper deposits with full confidence the price will soon match the demand. His expertise and ability to combine history and up to date numbers and outlooks gives even the greatest skeptic a wealth of knowledge to consider when looking into green energy.
Gianni describes himself as a “realistic environmentalist” in that the new spending class in emerging markets will inevitably consume more energy, and green energy will be a major ingredient of that development. He doesn’t begin to claim that oil or even coal is about to disappear. He does however make a compelling case that the future of copper is about get the recognition it deserves in the media and more importantly in investors’ portfolios. He describes Copperbank “as a bus full of race car drivers” and indeed as we watch electricity and all transportation merge together it seems that soon the race will be on and for some it has already started.
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