Video Recording with Industry Insider: Hedley Widdup

By James Cooper, Friday, 23 June 2023

In today’s issue of Fat Tail Commodities…James Cooper sits down with industry insider Hedley Widdup. Hedley is a trained geologist who runs the resource focussed fund, Lion Selection Group. He offers his key insights, his take on the recent weakness being felt across the resource sector, and the emerging opportunities.

Last month I recorded a conversation with Hedley Widdup for my Diggers and Drillers subscribers.

I thought it would be timely to share that video with you today.

Hedley has years of experience in the industry and now heads the mining-focused fund, Lion Selection Group [ASX:LSX].

In the recording, we discuss the overall health of the mining industry, the risks and opportunities.

A key point that Hedley highlights is the difficult year we’ve had for commodity stocks, particularly the smaller cap developers and explorers.

While multi-billion miners like BHP Group [ASX:BHP], Rio Tinto [ASX:RIO], Pilbara Minerals [ASX:PLS] have weathered market pressures reasonably well…higher interest rates and slower growth projections in China have caused turmoil for many of the mid-cap developers and explorers over the last several months.

But despite these pressures, there are signs that the worst could be behind us.

Since the recording last month, copper futures have rallied by almost 10% while many of the larger producers have gone one better…

The $60 billion Swiss mining giant Glencore [LON:GLEN] has accelerated by 15%.

While the US owned pure copper miners, Ivanhoe Mines [TSX:IVN], Southern Copper [NYSE:SCCO] and Antofagasta [LON:ANTO] have all surged by 25%, 15%, and 16% respectively, from an important May low.

Given that much of the short-term bad news has likely been priced in, the bulls could be about to edge their way back.

Fundamentally, nothing has changed in terms of constrained supply and enormous forecast demand for critical metals. These are some of the points I discuss with Hedley.

So, with that enjoy the video!

Regards,

James Cooper Signature

James Cooper,
Editor, Fat Tail Commodities

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

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James Cooper has been a working geologist in mines across Australia, Canada, and Africa since the early 2000s. He’s led the operations of tiny explorers through to huge producer outfits. He’s seen booms and busts firsthand and he also understands the cyclical nature of individual commodities. For example, James was right there when Barrick Gold launched an enormous $7.5 billion takeover bid for Equinox. That was the peak of the last cycle.

With his background as a geo and finance professional, he brings a unique insight and experience to Fat Tail Investment Research. He writes the broader resource-focused investing letter Diggers and Drillers and the ultra-speculative explorer-focused trading service Mining: Phase One.

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All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.