Copper mining stocks are a generational investment. Crazy upside.
So where are we in the cycle?
I did a video on copper if you’ve never seen it. Feel free to view it, or simply continue reading.
Current copper mines are old, and usually in sketchy jurisdictions.
We’ve already seen shenanigans in Peru and Chile both, as I called in the video.
Demand-wise, if we’re going to electrify, and we are, there is no substitute.
Supply is in major trouble, and demand is going nowhere but up.
This will be a long process, but how invested should we be right now?
Let’s get refreshed.
Where We Are Now
Great podcast episode this past week with one of the few real experts in the field, Nick Snowdon from Goldman Sachs.
I will mark areas in the podcast if you don’t want to listen to it all, and make comments.
3:00 – Much tighter than oil. Absolutely. We’re effed on copper.
4:10 – More scare porn
11:20 – No money coming into the sector. Just like what happened with oil since the ESG push in 2017.
13:25 – For new copper mines, it’s 2-3 years just to get permitted! If I recall, we haven’t had any new copper mines built in the last 15 years!!
15:25 – We’re in the 1st inning. Sounds about right. This is a very long-term investment with a very high upside. Moonboys can sit this one out. Adults only.
25:50 – “Absolutely ballistic to the upside”. Something in my pants just went ballistic.
35:05 – We’ve never been here before. This is foreign territory, that’s how lopsided things are.
Great overall pod if you want to listen to the whole thing.
Oh and let’s have a chart too, shall we?
— Patrick Karim (@badcharts1) June 2, 2022
Peak production is likely still to come though, as reenforced through this article here, but if you read it, you will notice it highlights Chile and Peru. These are two areas where you may not even get the copper you expected to get due to ridiculous policies.
But even if we do, for it to peak out this soon is disturbing from an energy standpoint.
How I’m Playing It
I currently have three positions. They’re small.
There is a chance this takes off early and leaves us all behind. Not on my watch. Too much at stake here. I need to be invested now.
Two of my positions are larger producers, and then one smaller one.
I am going to add to them over time.
With everything going on, it’s easy to forget things like copper and copper mining stocks.
Forgetting about them could be a generational mistake.
Get your act together now. Make sure you take part.