5g’s underground supplier

THE NO. 1 COPPER INVESTMENT IN AMERICA

5G’S UNDERGROUND

SUPPLIERBY DAVE FOREST, EDITOR, INTERNATIONAL SPECULATOR

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5G’S UNDERGROUND SUPPLIERInternational Speculator

Dear Speculator,

Study the image below. It might be the key to some of the biggest gains coming in the stock market…

Source: Hitachi Cable America(Size englarged to show detail)

It looks like something between a high-tech blueprint and an eye test. But actually, it’s an overview of a new technology. One that’s both leading-edge and elegantly simple. A technology that’s key to some of the biggest trends sweeping the planet.

The diagram shows the inside of a “fiber optic composite cable.” You’ve undoubtedly heard about fiber optic cables before. They transmit information in the form of electrical impulses. They’ve long been a key component in our infrastructure. And right now, there’s a massive buildout of fiber optic lines underway across America – and around the world.

That’s because information technology is changing radically with the introduction of 5G wireless data.

5G is one of the biggest new trends on the planet. The 5G industry is expected to be worth $668 billion globally by 2026. The thing with 5G mobile phones is, they require far more cell phone towers than are available. 5G works best with a clear “line of sight” – meaning you always want to be within a straight shot of a tower.

My research indicates the U.S. needs more than 28 million miles of fiber cable to provide full 5G access.

For that reason, network companies are spending billions constructing “Distributed Antenna Systems.” These are mini cell phone towers that fill gaps in the old network. Obviously, all these new towers need to be connected with fiber optics. But they also need power.

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The fiber optic composite cable I showed you above is a new product being rolled out for just that. The composite cable sends and receives signals from distributed antenna systems. But at the same time, it also runs power through the same lines. It’s an all-in-one solution.

But this new technology – and many others – wouldn’t be possible without the secret ingredient that powers it.

What’s more, in the next five years, more than 64 billion devices – including smart appliances, cutting-edge machinery, and smart buildings – are expected to be produced.

You see, all this advanced 5G technology – and plenty of other rising tech trends, including the Internet of Things, artificial intelligence, robotics, and electric vehicles (EVs) – have one thing in common.

They’re powered by something I call tech fuel. Tech fuel is simply the resources that power the biggest tech trends in the 21st century. And these fiber optic composite cables definitely owe their success to one tech fuel in particular… copper.

ADVANCED 5G TECH FUEL Copper has long been the go-to for electricity infrastructure.

Around the world, copper fuels a market worth over $225 billion, mostly for building traditional power lines. But those power lines are old technology. 5G’s fiber optic composite cables put a whole new spin on it...

Copper wiring will be built into some of the hottest new technologies on the planet. That means a potential explosion in new demand for copper. That’s especially exciting, because 5G is just one of the new industries where copper is in high demand…

ELECTRIC VEHICLE TECH FUELNew technologies like electric vehicles are also scooping up large amounts of copper. Copper is needed to distribute the electricity from the car’s battery to all the various vehicle systems.

Check out the chart below. It shows that a traditional internal combustion engine uses 23 kilograms of copper per vehicle… But hybrid electric vehicles require 40 kilograms of copper per vehicle – which is 74% more metal.

And that’s just the start.

If we move to fully battery-powered vehicles, you need 83 kilograms of copper to make one car.

That’s a 261% increase in copper requirements.

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Market studies show that this increased copper demand is going to ramp up fast as electric vehicles roll out all over the world. By 2025, copper demand for EVs is projected to nearly double from current levels. And by 2030, copper demand for EV manufacturing will have doubled again.

Remember, that exponential surge in copper demand for EVs is coming even as global copper supply is already tight. Just based on demand for regular infrastructure, copper buyers globally are anxiously trying to figure out where they’re going to get all the metal they need.

Metals like copper are so critical to the EV industry, Tesla founder Elon Musk recently said he might start his own mining operations just to ensure Tesla has enough feed for its manufacturing operations.

But here’s an issue that miners – and tech giants like Tesla, if it goes that route – are up against.

Security of supply.

According to the U.S. Geological Survey, the majority of the world’s copper metal supply comes from far-flung sources. That includes South American nations like Peru and Chile, as well as China and the Democratic Republic of Congo.

None of those are go-to investment destinations. Chile has long been the most stable amongst the major copper-producing nations. But even that country was recently rocked by massive social unrest.

For developers of critical 5G infrastructure, or manufacturers of electric vehicles, it’s going to be tough to hang their hats on supply from these locations. I believe that’s going to be very good for one place on the planet. And that’s right here, in America.

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MADE IN AMERICAThe Southwest U.S. was actually once the world’s largest copper-producing region. Major mines in Nevada, Arizona, Montana, and Utah pumped out large amounts of copper metal.

Today, American copper production has fallen behind China and South America. But that’s changing, thanks to a renaissance of new copper mines being developed on U.S. soil.

With metals prices rising – and supportive policies for mining introduced by the federal government – America is on track to once again become a mining powerhouse.

In fact, a recent survey by the influential Fraser Institute ranked states liked Nevada, Arizona, Idaho, and Utah among the top places in the world for new mining projects.

This isn’t a trend many people are aware of yet. Most U.S. investors still see mining as an outdated, old-world industry.

But with world-changing technologies like 5G, electric vehicles, and more coming on strong, mining for tech fuel – like copper – in America is anything but outdated.

This metal could become one of the most sought-after resources to feed the new economy.

But I’m glad most investors are looking the other way right now. It gives us a chance to buy shares of companies developing America’s next copper mines – at mere pennies.

THIS COMPANY LEADS THE U.S. COPPER RENAISSANCEOne of the top prospects for leading the U.S. copper renaissance is EMX Royalty (EMX.V or EMX).

This firm is led by some of the top geologists in the industry… meaning EMX foresaw the big changes coming for copper in America.

Then it pounced to take advantage.

Over the last decade, EMX’s team carefully identified some of the top prospective sites for copper across the Southwest U.S. As the map below shows, this includes many of the states I talked about that are ranked top in the world for mining development.

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Source: EMX Royalty

Arizona, Utah, and Nevada are a focus for EMX. It’s got a lot of ground across these states, and it’s continually adding more.

Some of these projects EMX sells in order to fund expansion. One of the company’s recent copper deals brought in $67 million in cash. Management will use this to expand into new areas.

You don’t have to be a seasoned exploration geologist to know that EMX is onto something good. Just look at the partnerships it holds with some of the world’s largest copper mining companies. Leading firms like Rio Tinto, Hudbay Minerals, and South32 have all lined up to work with EMX.

These deep-pocketed partners are a key part of EMX’s unique business strategy – the “royalty” strategy. That means its partners pay the bills for the exploration and development of new copper mines.

Those partners – some of the world’s largest mining companies – take on all the operational risk. EMX retains a royalty on copper production. It gets paid a set percentage of the revenues from the mine.

Those paychecks come to EMX whether the mine makes a profit or not. As the royalty owner, EMX is first in line to get its money. That helps soften the blow if commodity prices take a dip.

Any one of EMX’s projects could turn into a major new copper mine. It’s quite possible that several will.

That’s incredible when you think that a new mine can be worth billions of dollars…

Mine developer Arizona Mining, for example, was taken over for $1.3 billion. The buyer? South32, the major mining company that also has a history working with EMX.

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Today, EMX’s market capitalization is a fraction of that buyout price. That makes now an ideal time to get into this stock – and place yourself on the leading edge of the biggest technology trends unfolding by investing in tech fuel.

As an added bonus, EMX also has exposure to another of today’s most sought-after commodities: gold. Gold often occurs alongside copper in mines. So EMX has exposure to multiple key metals through its projects…

That diversification enhances EMX’s profit potential. Global monetary authorities are printing trillions of new dollars. Interest rates in many parts of the world have slipped into the negatives. Gold is a hedge against that financial insanity.

Even if the copper market doesn’t turn up the way I strongly suspect it will, EMX could still soar thanks to its gold exposure. And if copper demand for EVs does explode as part the tech fuel boom, this stock is a double winner.

Action to Take: BUY shares of EMX Royalty (EMX) up to US$3.50 or (EMX.V) up to C$4.50.

We’ll treat this as a speculation, which means we will control our risk by position sizing. Please invest only a small amount into this recommendation. Never invest money that you can’t afford to lose, and never borrow money to invest. Losing is always a possibility with all investments.

Keep walking the path,

David Forest Editor, International Speculator

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5g’s underground supplier

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