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In contrast to recent years, commodity-related shares seem to be in particularly high demand at present.
The commodities sector has been through a lot in the past. Just think of 2015, when U.S. producers overinvested in shale oil production, or when China pulled out of massive overinvestment in infrastructure. So, investment in the commodity sector went down. Then there was the net zero emissions thing. The low investment then subsequently caused commodity prices to go up. These are now benefiting commodity producers. Looking at mining stocks, there has been an increase of over 120 percent since the February 2020 low. Expected earnings have risen around 144 percent. Here, the profit forecasts are mainly based on supply and demand as they were before the Ukraine war. And this situation still exists now. Industry experts assume a favorable valuation for the shares with commodity participation.
The fact that the price of some commodities has currently fallen is due to the lockdown in Shanghai and the impending lockdown in Beijing. These are slowing down the economy. Nevertheless, the big picture remains, demand for commodities will pick up again in China and elsewhere. This applies, for example, to copper, the economic metal par excellence. China's announcement of support for the economy comes at just the right time. Incidentally, in March China exported more copper than at any time since 1916, at very high copper prices, and thus melted down previously cheaply purchased inventories. For investors, companies that own gold and copper in the projects should be particularly attractive. Gold stands for value retention and copper is a raw material of the future.
For example, Torq Resources - https://www.youtube.com/watch?v=934MixLRGB4 - owns both commodities in the Margarita, Santa Cecilia and Andrea projects in Chile.
Aztec Minerals - https://www.youtube.com/watch?v=tjshm6V9WJo - owns the Cervantes porphyry gold-copper project in Mexico and interests in the historic Tombstone Silver District in Arizona.
Current corporate information and press releases from Torq Resources (- https://www.resource-capital.ch/en/companies/torq-resources-inc/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
In contrast to recent years, commodity-related shares seem to be in particularly high demand at present.
The commodities sector has been through a lot in the past. Just think of 2015, when U.S. producers overinvested in shale oil production, or when China pulled out of massive overinvestment in infrastructure. So, investment in the commodity sector went down. Then there was the net zero emissions thing. The low investment then subsequently caused commodity prices to go up. These are now benefiting commodity producers. Looking at mining stocks, there has been an increase of over 120 percent since the February 2020 low. Expected earnings have risen around 144 percent. Here, the profit forecasts are mainly based on supply and demand as they were before the Ukraine war. And this situation still exists now. Industry experts assume a favorable valuation for the shares with commodity participation.
The fact that the price of some commodities has currently fallen is due to the lockdown in Shanghai and the impending lockdown in Beijing. These are slowing down the economy. Nevertheless, the big picture remains, demand for commodities will pick up again in China and elsewhere. This applies, for example, to copper, the economic metal par excellence. China's announcement of support for the economy comes at just the right time. Incidentally, in March China exported more copper than at any time since 1916, at very high copper prices, and thus melted down previously cheaply purchased inventories. For investors, companies that own gold and copper in the projects should be particularly attractive. Gold stands for value retention and copper is a raw material of the future.
For example, Torq Resources - https://www.youtube.com/watch?v=934MixLRGB4 - owns both commodities in the Margarita, Santa Cecilia and Andrea projects in Chile.
Aztec Minerals - https://www.youtube.com/watch?v=tjshm6V9WJo - owns the Cervantes porphyry gold-copper project in Mexico and interests in the historic Tombstone Silver District in Arizona.
Current corporate information and press releases from Torq Resources (- https://www.resource-capital.ch/en/companies/torq-resources-inc/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
