Copper – Just Came Across This Screening Table 

By Tshepo Magagane

To be honest, at the time, I was still a Bulks guy – it was easier to get the driver right quickly when looking at distressed assets!

The 2010s were not great for Copper stocks, but that is when you needed to be positioning.

The second-best time is right now.

And look at the column to see even then, how few Explorers there were…spot, it is even worse – even when the Investment Case is writing itself!

I started developing the Copper thesis during the Boseto (Khoemacau) restructuring – you can see the implied cost structure during commissioning, which required a totally new mine plan, and go “Copper prices for low grades have to migrate upwards significantly”!

And when you looked at the Intensity of Metal Use for Industrialisation, you immediately understood how this was building up (this is before Electrification, Data).

And look at FQM here 1. 2bn company 2. It was only 10 years after its formation (from 2kpta) 3. Was defined at DRC (the headwinds this company has faced – they deserve their spot in the Electrification Era – Panama is nothing compared to what they saw in the DRC) 4. See current market cap (which is a fraction of private market valuations).

Copper = never seen an Investment Case that you can build up from so many different angles! There are many different angles, and it keeps stacking up. I have dealt with Bank Pref investing post-GFC; that was pure certain cash or stocks trading on 1x PER.

…this is something different!