From an industry-wide marginal production cost of US$6150 a tonne in 2021 the cost of producing copper has risen to $8000/t, the bank said. Some existing mines will struggle to trade profitably in the new and higher cost environment while projects in the planning stage could face delays as developers reassess new financial pressures. It doesn't get any better on the revenue side of Citi's outlook with the copper price forecast to fall to $8500/t over the next three months, down 5.5% on the latest price of $9000/t which is already 16.6% down on the March peak of$10,800/t.
NSTL
