Golden International Mining Group chairman Rafael Hernandez Ortega says he has no worries about the recent fall in metal prices, backing the commodities to bounce back from the losses.
Copper prices posted their biggest weekly fall in over a year, whilst gold and silver also posted significant drops, with investors concerned that inflation-fighting initiatives from central banks will stifle growth and reduce demand. Benchmark copper on the London Metal Exchange bottomed out at $8,122.50 a ton on Friday, the lowest level since February 2021
Hernandez Ortega is confident though that the drops will be short-lived, pointing to the long-term outlook of increased demand for metals, particularly for use in electronic devices.
“We may be seeing some momentary panic from investors, but nothing has changed with the fundamentals,” he said.
“Demand for electronics may drop temporarily due to financial constraints, but the long-term trends are clear. Demand will return, and when it does we will see prices correct.”
Santiago-based Golden International primarily focuses on the exploration and extraction of gold deposits, but also extracts significant quantities of copper. Hernandez Ortega confirmed that the company has no plans to adjust production targets in light of the price drops, following in the footsteps of state-owned giant Codelco, who also recently confirmed they would maintain existing targets.