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,
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James Cooper,
Editor, Fat Tail Commodities
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