Greetings Contrarian,

This is The Next Big Rush, your daily drop of mining/energy investing news. Where we come together and talk gold and copper because everything else is jinxed.

Here are the highlights:

😍 Delicious Gold Hit In Guyana

👨🏻‍💼 Copper: Demand, Prices, Taxes and Legislation in Chile 

🪨 Visualising Teck's Coal Business

🕺🏻Beautiful Gold Hit In Guyana

Reunion Gold Corporation (TSXV: RGD) (OTCQX: RGDFF) reports additional drill results from its 100%-owned Oko West Project in Guyana, including from an additional 25 diamond drill holes (totalling 11,969 m) at the Kairuni zone.

Highlights:

109.7 m @ 5.59 g/t Au 

Including 42.0 m @ 13.26 g/t Au

65.4 m @ 4.13 g/t Au

Including 26.7 m @ 5.13 g/t Au

And 6.3 m @ 18.14 g/t Au

These results are part of an approximately 30,000 m drill program, which was initiated at the start of 2023 and is expected to be completed in early May. The program is designed in support of the release of a Maiden Resource Estimate by mid-year 2023.

Guyana? We’re watching and listening.

🤘🏼  Copper: Demand, Prices, Taxes and Legislation in Chile

Market conditions

Despite tightening credit and slowing growth, the copper industry remains optimistic heading into one of its biggest annual gatherings in Chile. 

The industry's confidence is supported by the lowest stockpiles of copper in 18 years, a measure attributed to China's reopening and supply-side challenges. This has helped copper prices hold up better than most in the face of global market mayhem. 

We all know new deposits are becoming more expensive and difficult to develop, so major producers such as BHP Group and Glencore Plc are turning to deal-making for growth. 

However, with environmental and social issues receiving greater scrutiny, permitting is becoming a helluvalot more difficult. 

As the world transitions to so-called “cleaner” energy sources, supply headwinds in the biggest copper reserve nation are significant given the metal's importance in EVs and wind turbines.

Demand and Prices

The price of copper increased on Tuesday as a result of China's economic growth exceeding expectations of some analysts who didn’t look at high commercial flight activity in the country, which spelled this out several weeks ago. 

Chinese GDP rose by 4.5% year on year in the first quarter of 2023, if you believe their numbers, surpassing the projected 4% growth. 

Copper for delivery in May on the New York Comex market rose to $4.10 per pound ($9,020 per tonne), a 1% increase from Monday's closing price. 

Meanwhile, Peru, the second-largest copper producer globally, saw its copper exports fall by 20%.

Copper production, on the other hand, increased by 5% during the same period.

Taxation

The Chilean government proposed amendments to the bill on Monday, which would reduce the maximum tax burden for copper producers to 48% of operating profit, as opposed to the previously suggested 50% (gasps).

There are still differences in opinion over the calculation of the tax burden, as to whether it should be “daylight robbery” or merely “night time robbery”. 

The Law

 Anglo American PLC said today it has secured environmental approval for Los Bronces Integrated Project in Chile, setting up the next phase of development for one of the world's largest copper mines.

This project is an expansion of the open pit within the operating site of the Los Bronces copper mine in central Chile. It is targeting higher grade ore from a new underground section of the mine.

Anglo American said it will continue to progress the project through its pre-feasibility stages.

The project uses the mine's existing processing facilities, optimises water efficiency, has no impact on glaciers and requires no additional fresh water or tailings facilities.

A sigh of relief until the next issue comes up. 

👀 Visualising Teck's Coal Business

🤣 Meme of The Day

Happy Speculating!

The Editor

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.