New Position: A High-Conviction Bet on Copper
An undervalued copper producer at an inflection point
We found a company that meets each of our criteria in our investment process: a well-run business at an inflection point, trading at a reasonable valuation with a clear path for growth and profitability, in a theme that we find compelling.
The new stock we are adding today to the Aurelion Index is a mining company that focuses mainly on copper, but also produces gold, silver and zinc.
And importantly, we go through our thinking on why we like copper-related equities now.
What we like about this one is that it offers a mix of existing copper production, mine-life extensions, and a growing pipeline of new projects. So this isn’t a mining story where you produce for a couple of years, make some money, and then need to get out. There is a long-term growth story here.
The company is Canadian, like many mining companies, but trades on both the NYSE in the U.S. and the TSX in Canada. It also owns and operates mining assets in friendly jurisdictions.
With a market cap of over $10B and strong trading volume, it is more accessible to institutional investors and has greater potential to attract momentum as the story gains attention.
Table of Contents
Why Now?
1.1 An Attractive Entry Point
1.2 The Copper Bull Case
Company Overview
Why the Valuation Is Attractive
The Path to Sustainable Growth
How We Value the Company
What Could Go Wrong
Our Final Thoughts