Scotiabank mining analyst Orest Wowkodaw is bullish on copper and uranium stocks,
“Heightened macroeconomic concerns from elevated interest rates, high energy prices, a strong U.S. dollar, and a sputtering China, continue to stoke global recession fears. Although we remain concerned with near-term consumption risks, particularly in China, several commodity markets, including Cu [copper], U3O8 [uranium], and Fe [iron] , appear surprisingly tight in 2024, driven by ongoing supply[1]side underperformance and remarkably resilient demand. Moreover, with visible inventories for some metals already at critically low levels (Cu at only ~3 days), we anticipate a relatively attractive pricing environment this year, despite economic uncertainty. In the medium to long term, we anticipate the emergence of a new commodities super cycle for several metals (notably Cu), driven by growing demand from global decarbonization efforts to address climate change … We are concerned with near-term over-supply risks in Zn and Ni… We recommend 12 of 25 equities under our combined coverage. TECK.B-T [Teck Resources] and CCO-T [Cameco] remain our top picks; we also highly recommend CS-T [Capstone Mining] and FCX-N [Freeport McMoran] for Cu exposure. We also prefer ECOR-L [Ecora Resources PLC] , HBM-T [Hudbay Minerals] , and IVN-T [Ivanhoe Mines Ltd.]