Tribeca Global Natural Resources Limited (ASX:TGF) Insights: Copper in Focus

Copper remains one of the Company’s largest exposures with >40% net long positions to various global producers and developers. Like a number of commodities we analyse, copper is materially supply constrained, has record-low inventories and is in the early stages of significant demand growth from electrification.

 

The red metal has traded between US$8,000-9,000 per tonne for the last 18 months and was rangebound within US$9,000-10,000 per tonne in the period prior. Copper equities have also generally been trading in a sideways pattern but are looking increasingly likely to break out on the improving fundamental outlook for the commodity.

 

Portfolio Manager, Ben Cleary, discusses in the article the key drivers for the copper market and why he thinks the commodity will trend towards US$15,000 per tonne in coming years. As articulated in recent commentary, key positions exposed to copper such as Freeport, Teck Resources and Glencore appreciated strongly in March and continue to provide significant operating leverage to the copper thematic.

 

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MoneyTalks: Tribeca’s Ben Cleary says investors should keep faith in metals, energy for three reasons

Ben Cleary, Portfolio Manager of the Tribeca Global Natural Resources Strategy, remains optimistic about the mining and energy sectors in 2024, citing onshoring, electrification, and energy security as key trends that will drive demand for commodities. Despite a challenging 2023 for resource equities, Cleary emphasizes the sectors’ strong fundamentals, including low debt, robust cash flows, and strong capital returns. He anticipates that the positive impact of these global trends will outweigh short-term material volatility, pointing to opportunities in nuclear power, oil, and gas, as well as potential in the battery metals sector, specifically lithium and graphite.

Cleary provides stock recommendations aligned with these themes, favouring companies involved in uranium and nuclear power, such as Cameco and Boss Energy, and highlighting opportunities in energy, thermal coal, and metals markets. He sees potential in Develop Global as a top ASX copper pick and Syrah Resources as a promising player in the graphite sector. Cleary concludes by recommending Pilbara Minerals in the lithium sector and identifying South32 and Champion Iron as top picks in the bulk and diversified miners category.

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