Last Friday, shares of Kutcho Copper (TSX-V: KC & US: KCCFF) saw a 23%, one-day climb. This has confirmed what we’ve been predicting for a while now – the negative ramifications of the trade war caused a large sell-off with base metal stocks. But the optimism involving an historic deal will potentially reverse this process.

Kutcho Copper is down 62% since it peaked in January 2018. It has been trading at CAD$0.30 for months and has just experienced a spike on Friday – up 23%, closing at CAD$0.40. It’s, officially, the birth of an uptrend.

Take a look at Kutcho’s months-long tight range and its recent surge:

This past Friday’s move up was prompted by the U.S. GDP data, which confirmed that the economy is heating up, as Chinese and American officials are talking about trade deal details. Trump decided not to initiate further tariffs, effective March 1st, showing that he is looking forward to a new era.

Kutcho Copper’s (TSX-V: KC & US: KCCFF) flagship asset has some big names invested in it. In fact, 33% of the outstanding shares are owned by management, Capstone Mining and one of the best project evaluators around – the team that runs Wheaton Precious Metals, which rarely becomes both a shareholder of a company and creates a streaming agreement with them at the same time, as well as lending them funds.

The company has advanced their flagship project, through thick and thin, despite 2018’s uncertain environment. They chose to meet their guidelines, instead of allowing politics to stop them. I love the ferociousness.

The strategy that CEO Vince Sorace has put in place is ingenious. As a first step, they’re pursuing the low-risk/high-reward tactic by upgrading the existing resource in the M&I (Measured & Indicated) category. Next, they began drilling in 2018 in order to expand resources and convert to the inferred category.

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    Bottom line, management has over-delivered. The market has sold-off, even in the face of successful drilling results. We know that this anomaly is likely playing in our favor.

    We’ve reached a point where pure play copper stocks have been clobbered due to the trade war. This opportunity has been served to us by President Trump, who can be the same person to resolve the issue and potentially open the floodgates for commodities to soar.

    I’ve been waiting over 15 months for this trade to break out. It’s now right where I want it to be.

    Copper is not only essential, but one industry is creating a mad rush of demand: electric vehicles.

    Put together, the world’s two largest auto markets, China and the U.S., will add another 1.9% to annual copper demand – thanks to EV production.

    The problem is that the planet’s largest copper mines are in serious decline. I’ve visited a number of them. Most of the monstrous ones have been around for decades. As you know, the more time passes, the lower the grades are and the deeper you have to dig. This is a costly process, which could ultimately send prices higher.

    Let me put it this way, fewer than 200 mines represent over 80% of the current supply. That’s a dangerous situation, which could become very bullish, going forward.

    As with gold, the big issue is the fact that exploration has failed for many years. It’s no longer easy to discover major deposits. Globally, over $325 billion has been sunk into drilling programs and geological work in the past decade, but with very few mines resulting from it.

    The way I see it, copper will soon be termed a “strategic resource,” and governments will label it critical. The price is heading much, much higher, as I see it. Compared with gold, whose supply is all above ground in the form of jewelry, bullion, coins, and art; copper is being used, but the recycled supply is minimal. This is a classic supply/demand scenario.

    This is a rare scenario, as it is extremely unique to see the management team checking-off major milestones, and not getting any attention from investors UNTIL last Friday.

    This could be the turning point I’ve been waiting for.

    Consider shares of Kutcho Copper (TSX-V: KC & US: KCCFF) NOW!

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