Distributed on behalf of Gunnison Copper Corp.
Used in everything from electric vehicles and data centers to power grids and defense systems, copper prices are exploding with massive supply-demand issues. It’s just part of the reason why copper ran from about $4.25/lb. to more than $6 – with more upside likely. All of which is creating big opportunity for copper companies, such as Gunnison Copper (TSX: GCU) (OTCQB: GCUMF), Rio Tinto (OTC: RTNTF), Freeport-McMoRan (NYSE: FCX), BHP Group (NYSE: BHP), and Teck Resources (NYSE: TECK) (TSX: TECK).
For one, we have to remember that "Copper is the connective artery linking physical machinery, digital intelligence, mobility, infrastructure, communication and security systems; the future availability of copper has become a matter of strategic importance,” notes S&P Global.
Two, data centers require significant amounts of copper for their construction, most notably for their power networks, circuit boards, and cooling systems. According to BHP, “A study of Microsoft’s US$500 million data center facility in Chicago found it used 2,177 tonnes of copper, equivalent to 27 tonnes of copper for every megawatt (MW) of applied power.” In addition, according to the International Energy Agency (IEA), hyperscale data centers have power demand of 100 MW or more, an annual electricity consumption equivalent to that used by around 350,000 to 400,000 electric cars, as also noted by BHP.
Three, as also noted by S&P Global, the “’accelerating pace of electrification’ is projected to swell copper demand to 42 million metric tons by 2040, a 50% increase from current levels. Yet, existing supply is currently poised to decrease in coming years as the mining sector faces challenges across the copper value chain.”
One of the Beneficiaries is Gunnison Copper (TSX: GCU) (OTCQB: GCUMF)
Gunnison Copper (TSX: GCU) (OTCQB: GCUMF) just announced the results of an updated NI 43-101 Preliminary Economic Assessment on its 100%-owned Gunnison Copper Project in the Cochise Mining District, Arizona, United States. The PEA supersedes the previous PEA on the Gunnison Project released in December 2024 in all respects
Highlights:
· Conventional open pit, heap leach, SX/EW operation producing 99.999% pure copper cathode intended to supply United States energy, data center, manufacturing, and defense supply chains
· Straightforward mine plan consists primarily of oxide copper mineralized material with a life of mine material placed on the leach pad of 541 million tons at 0.43% total copper grade, including 25 million tons at 0.85% total copper grade from the Strong & Harris satellite deposit
· Primary crushing on all, and secondary crushing on some material to improve copper recoveries
· Average annual copper cathode production of 174 million pounds (87 thousand tons) for the first 15 years; enough to potentially supply over 11% of the current United States domestic refined copper metal production from mineralized material1. Total copper produced 3.2 billion lbs. over a 21-year mine life.
· Cash costs of $1.69, Sustaining Cash Costs of $2.00, and All-In Sustaining Cash Costs of $2.06 per pound of copper produced are in the lower half of the cost curve for copper mines globally.
· Robust project economics in a variety of copper price environments, including $4.60/lb base case
· High purity limestone overburden, previously treated as waste, is now used to produce a cement co-product to alleviate the regional cement supply deficit adding $130M NPV8%
· Significant economic impact to Cochise County, State of Arizona, and the United States nationally through creation of over 53,000 jobs, $544 million in state and local county taxes, $1.37 billion in federal taxes, and $14.6 billion in total economic output.
The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the conclusions reached in the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Dr. Stephen Twyerould, CEO, commented, "The updated PEA underscores the scale and compelling economics of the Gunnison Copper Project, positioning it as a significant future supplier to the American copper market and a key contributor to the domestic supply shortfall. At a consensus copper price of $4.60 per pound, the Project delivers an after-tax NPV8 of approximately US$2.0 billion, a 23% IRR, and an attractive 3.9-year payback, positioning Gunnison as one of the most financially compelling copper development projects in the United States.”
“Importantly, 83% of the $692 million increase in NPV8% versus our 2024 preliminary economic assessment study is driven by operational enhancements within our control, including the addition of the high-grade Strong & Harris satellite deposit, material sorting, cement and limestone co-products, and optimization initiatives. With average annual production of 174 million pounds of 99.999% pure copper cathode in the first 15 years, lower-half-of-the-cost-curve operating metrics, and significant leverage to copper prices, we believe Gunnison offers shareholders meaningful exposure to a large-scale, long-life U.S. copper asset as we advance toward Pre-Feasibility, permitting, and project financing."
Other related developments from around the markets include:
Rio Tinto outlined its strategy to deliver industry leading returns by becoming stronger, sharper and simpler, at its 2025 Capital Markets Day. Chief Executive Simon Trott and members of the executive team will detail how Rio Tinto will unlock its full potential to become the most valued metals and mining business through a strategy that starts with having the right assets in the right markets, supported by a diversified model that delivers market-leading performance and industry-leading returns. Three strategic pillars are focused on driving a step change in performance and returns: Operational excellence: streamlining to three world class businesses – Iron Ore, Copper and Aluminum & Lithium – with safety first, a relentless focus on productivity and leveraging best in class ore body knowledge; Project execution: creating new options for organic growth by delivering projects reliably, efficiently and at scale; Capital discipline: continuing to allocate capital with rigor and maintaining a strong, resilient balance sheet, with leading returns.
Freeport-McMoRan announced plans to restore large-scale production from PT Freeport Indonesia’s (PTFI) Grasberg operations in Central Papua, Indonesia. As previously reported, PTFI commenced production from the unaffected Deep Mill Level Zone and Big Gossan underground mines in late October 2025. Remediation activities are being advanced to prepare for a phased restart and ramp-up of the Grasberg Block Cave underground mine beginning in second-quarter 2026. Kathleen Quirk, President and Chief Executive Officer, said, “Our team is committed to restoring large-scale, low-cost production at Grasberg in a safe, efficient and responsible manner. We have incorporated the learnings from the recent tragic incident into our future plans and are implementing several initiatives to address the conditions that led to the incident. We will continue to prioritize safety above all else as we restore operations and work to provide benefits to our many stakeholders.”
BHP Group entered into its third and largest renewable electricity supply arrangement for Copper SA, taking another step forward in its operational decarbonization and unlocking significant new investment in renewable generation in the state. Under this baseload electricity arrangement, 100 megawatts (MW) of renewable electricity will be supplied to power BHP’s Copper SA province, including the Olympic Dam mine, smelter and refinery as well as the Carrapateena and Prominent Hill operations. It will be supported by output from the first 300 MW of Neoen’s Goyder North Wind Farm, firmed by their new Goyder Battery with a minimum capacity of 200 MW / 800 MWh, and Neoen’s in-house energy management expertise. Both assets are currently under development near Burra in South Australia’s mid-north, with BHP as the primary customer.
Teck Resources announced that "The merger of equals between Teck and Anglo American announced this quarter is a unique opportunity to create a global leader in critical minerals and a top five copper producer," said Jonathan Price, President and CEO. "The combination will unlock significant value for shareholders through integration of Quebrada Blanca and Collahuasi and meaningful corporate synergies, offering a compelling high-quality, copper-focused investment opportunity. In addition, we completed a Comprehensive Operational Review to ensure our business plans are grounded in demonstrated performance. Our focus moving forward is on disciplined execution and completion of the merger.”
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for Gunnison Copper by Gunnison Copper. We own ZERO shares of Gunnison Copper. Please click here for disclaimer.
Contact:
Ty Hoffer
Winning Media
281.804.7972
[email protected]
