“Resources equities are just screaming value,” said Ben Cleary, Portfolio Manager of Tribeca Global Natural Resources Fund.
A downturn in Australia’s largest mining companies has created a significant buying opportunity, according to major investors in the sector who are now looking beyond iron ore for future returns. The ASX 200 resources stocks dropped 11.1% in the first half of the year, with a rapid unwinding of a base metals rally in June contributing to the decline. This correction has heavily impacted Australia’s sharemarket due to its exposure to the resources sector.
Ben Cleary, Portfolio Manager of Tribeca Global Natural Resources Fund, sees this route as a value opportunity.
“While I think rate cuts are on the horizon, they aren’t necessarily needed for the commodities equities to perform strongly in the second half, but it’ll certainly help.”
Cleary is still bullish on copper and thinks prices will need to surge again to incentivise enough supply to meet the booming demand. The Fund holds major producers Sandfire Resources, Metals Acquisition and Capstone Copper. Additionally, Cleary also likes uranium and owns shares in Boss Energy and Lotus Resources.
Read more here: AFR Article