Joe Mazumdar: Copper is the Commodity of the Decade, Ways to Get Exposureyoutu.be
Investors often focus on the commodities of the moment, but which have potential over the next decade?
Speaking to the Investing News Network at the recent Vancouver Resource Investment Conference (VRIC), Joe Mazumdar, editor of Exploration Insights, said copper is his pick.
“Some of it’s battery metal exposure, it’s construction,” he said. “But also on the supply side, the lack of development projects and the higher permitting risk combined with more geopolitical risk in two of the major producers, Chile and Peru. They might have issues with production into a market (where) demand might grow.”
Mazumdar has been pushing the Exploration Insights portfolio more toward companies focused on the red metal, and recently returned from visiting a number of copper-centric players.
Those include Ero Copper (TSX:ERO,NYSE:ERO) in Brazil, which he likes partially because it isn’t facing power and water constraints, and Pan Global Resources (TSXV:PGZ). Mazumdar’s next stop will be Arizona Sonoran Copper Company (TSX:ASCU,OTCQX:ASCUF), which importantly is working on private land.
Aside from copper, the expert also spoke about financing, which he sees as the “big squeeze” facing the resource sector right now, especially as companies deal with higher costs due to inflation and other factors.
“You really need access to capital, and you really need to know that they can actually raise that money, no matter if the times are good or bad,” he said, noting that strategic investors can be key. “Counting on the retail sector to help you finance it probably is not a good strategy right now.”
In closing, Mazumdar explained that although the market is scary right now, it may be a chance to buy.
“The thing is that — do you catch a falling knife right now in terms of what’s going down? But it’s an opportunity to pick up stuff that you’ve always liked — you like the management team, you like the access to capital, you like the project, you like the jurisdiction, you like what they’re doing — but they were always too expensive,” he said.
“Those are the ones that you should look for and grab with two hands, because those are the ones that will recover and do well. And they might have an underlying M&A bid as well.”
Watch the interview above for more from Mazumdar. You can also click here for our full VRIC playlist on YouTube.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Pan Global Resources is a client of the Investing News Network. This article is not paid-for content.
The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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