Konwave Transition Metals Has Recently Upped PositionMultipartner SICAV - Konwave Transition Metals Fund
has recently upped its stakes in WRN on the NASDQ. They have also upped their stakes in Teck and Ivanhoe. Meanwhile, they have decreased their stakes in First Quantum and Lundin Mining.
Previous stake in WRN. 111,862 shares
Current stake in WRN 497,862 shares (increase 385,800 shares)
Not exactly a prominent shareholder, but interesting that they are increasing their stake.
MONTHLY REVIEW FUND DATA
The Konwave Transition Metals Fund declined slightly in August with a minus of 2.0% and reached a volume of USD 362.6 million. Like the broad equity market, mining stocks are currently influenced by interest rate expectations and Fed policy. Metal prices corrected by 2.9% in August (Bloomberg Industrial Metals Subindex). At present, there are both supply and demand concerns on the metal market, with inventories still very low. On the demand side, China continues to dominate, regularly announcing new infrastructure programs and support for the real estate market. It may be expected that further packages will be announced at the party congress on October 16 and that President Xi will focus on investments in the energy transition. Electric car sales continue to surprise on the upside and some forecasts are being revised sharply upwards: BMO, for example, raised its forecast to 13.6 million in 2023 and 35 million in 2030 (previously 11.6 and 30 million), which would significantly increase demand for lithium, graphite, nickel, copper and aluminum.
On the supply side, several problems can be identified: the energy crisis in Europe leads to closures especially in the zinc and aluminum sector, in China's southwest the drought leads to problems with hydropower (decline in aluminum production) and especially in Chile strikes and interrupted supply chains lead to problems with copper production.
The weakness in metal prices, which has now lasted almost 6 months, continues to lead to generally low investment, which has further delayed the expansion of supply necessary for the future. The large mining groups generally have very healthy balance sheets, high free cash flow, limited internal growth opportunities and shareholder pressure to invest in transition metals (currently dependent on iron ore and coal), which should lead to more takeovers in the future. In addition, due to the decline in metal prices, many explorers, developers and small producers are very cheaply valued, also relative to the large producers, which allows for accretive acquisitions. The Konwave Transition Metals Fund should benefit in this environment due to its metal exposure and small-mid cap tilt.
TOP-TEN HOLDINGS ASSET ALLOCATION
First Quantum Minerals Alcoa Corp.
Alcoa
Ivanhoe
Lundin Mining
Teck Resources IGO Ltd.
IGO Ltd.
Norsk Hydro
Atalaya Mining
Eramet
Pan American Silver