One expert says the scarce supply of copper is fuelling potential deal activity in commodity markets. 

Scott Bauer, chief executive officer at Prosper Trading Academy, said in an interview with BNN Bloomberg Monday that copper mines being shut down are likely to result in supply shortages in 2024. He also noted that there is currently “a wave of deals across the sector.” 

Last week, Bloomberg News reported that Barrick Gold Corp. was speaking with major investors in First Quantum Minerals Ltd. regarding a potential takeover. 

“This one goes back a while…to summer of last year, when there were some news reports about it and Quantum wanted nothing to do with it,” Bauer said. 

However, since that time, he highlighted that Panama ordered the closure of First Quantum's flagship mine. 

“That stock has plummeted (between) 60 and 70 per cent (marking an) almost opportune time for Barrick or someone else to possibly come in and make a play,” Bauer said. 

For the full interview with Bauer, click on the video at the top of this article.

With files from Bloomberg News