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First Quantum Minerals Ltd. (FM)
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Teck Resources Limited Class B Subordinate Voting Shares (TECK.B)
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Capstone Copper Corp. (CS)
Q: with so much extra copper needed in the future ,because of EV and clean energy what are your thoughts going forward on the copper price in the future?
It seems to me a no brainer as building a mine will not happen overnight either.
How would you play this as an investor?
It seems to me a no brainer as building a mine will not happen overnight either.
How would you play this as an investor?
5i Research Answer:
The price of almost any raw material will be volatile over time but largely we believe that the demand for copper will increase over time. There are many factors that impact the price of raw materials and metals, even factors such as investors' expectations for a recession or decline in demand can cause prices to drop, and so there are a lot of unknown forces that can negatively impact price, but the long-term demand is there.
Rather than invest in the raw material itself, we would prefer a mining company such as CS, TECK.B, or FM. Although, the mining industry can be volatile and so we would be cognizant of potential pullbacks or periods of overvalution.