Record Copper Prices Highlight the Urgency of New U.S. Supply

In January 2026, copper prices reached all-time highs, with COMEX copper breaking above US$6.00 per pound, underscoring a market increasingly constrained by limited supply and rapidly accelerating demand. Copper has become one of the most strategically important materials in the global economy, sitting at the intersection of electrification, energy transition, digital infrastructure, and national security. As these trends converge, demand for copper continues to grow faster than the industry’s ability to bring new supply online.

Copper demand is being driven by multiple long-term structural forces. Electrification across transportation, power generation, and industrial systems requires significantly more copper than traditional infrastructure. Electric vehicles use several times more copper than internal combustion vehicles, while renewable power generation, grid expansion, battery storage, data centers, and artificial intelligence infrastructure are all copper-intensive. Copper also plays a critical role in national defense, where it is the second most-used metal by the U.S. Department of Defense, valued for its unmatched electrical conductivity, durability, and corrosion resistance across advanced military platforms, secure communications, radar, missile defense systems, and next-generation weapons technologies.

Recent price strength has been further amplified by near-term supply disruptions and growing trade uncertainty. Copper prices surged again in early January after persistent operational challenges at major mines and concerns that potential U.S. trade tariffs could disrupt global flows. Benchmark three-month copper on the London Metal Exchange climbed to a record US$13,387 per metric ton, marking nearly a 30% rally since October. Large operations such as Freeport-McMoRan’s Grasberg complex in Indonesia have faced production challenges, while labor disruptions at Capstone Copper’s Mantoverde mine in Chile have reduced output expectations in one of the world’s most important copper-producing regions.

At the same time, expectations of potential U.S. tariffs have prompted traders to move refined copper into U.S. warehouses ahead of any policy changes, tightening availability elsewhere and contributing to elevated prices.

Looking further ahead, forecasts point to a widening structural gap between supply and demand. A United Nations report estimates that global copper demand could rise 40% by 2040, requiring significant investment and new mine development simply to keep pace.

Wood Mackenzie projects copper demand will increase 24% by 2035, while the International Copper Study Group forecasts a refined copper deficit of approximately 150,000 metric tons in 2026 alone. With few large projects nearing production globally, these forecasts reinforce expectations for sustained supply tightness and elevated long-term copper prices.

Against this backdrop, Gunnison Copper (TSX: GCU | OTCQB: GCUMF | FSE: 3XS0) is emerging as a highly relevant U.S. copper story. The Company is now America’s newest copper producer, having successfully restarted production at its Johnson Camp Mine in Arizona. Johnson Camp is producing copper cathode on U.S. soil and serves as the first industrial-scale demonstration site for Nuton LLC, a Rio Tinto-backed venture advancing innovative sulfide-leaching technology. A key milestone was achieved with the production of the first copper from Nuton technology in December 2025, marking the first time this process has been demonstrated at commercial scale.

Gunnison’s role in strengthening domestic copper supply has also been recognized at the federal level. In 2025, the Company was awarded US$13.9 million in Section 48C Advanced Energy Project tax credits from the U.S. Department of Energy, becoming the only copper company to receive the award. This support reflects ongoing U.S. government efforts to secure critical mineral supply chains, reshore strategic materials, and reduce reliance on foreign sources.

The credit underscores the strategic importance of domestic copper production and supports Gunnison’s contribution to U.S. infrastructure, energy transition, and national security objectives, aligning the Company with broader federal priorities to accelerate permitting, funding, and development of critical mineral projects across the United States.

Beyond current production, Gunnison remains focused on advancing its flagship Gunnison Project in Arizona, a large-scale, open-pit copper development with long-life potential. The Company is targeting the release of an updated Preliminary Economic Assessment (PEA) at the end of January, incorporating recent technical work and optimization initiatives as it continues to position the project as a meaningful future contributor to U.S. copper supply.

As copper prices push to record levels and demand continues to rise across industrial, technological, and defense-driven applications, the importance of new, reliable domestic supply has never been clearer. With producing assets, innovative technology partnerships, federal support, and a growing development pipeline, Gunnison Copper is increasingly well positioned in a high-price copper environment where supply security and execution matter more than ever.