ScotiabankThese copper and uranium miners are favoured by Scotiabank Scotiabank mining analyst Orest Wowkodaw sees near-term upside for copper and uranium miners.
“Although we have further reduced our consumption expectations, particularly in China, ongoing supply-side challenges have served to maintain surprising tightness in some markets, most notably copper. Overall, we anticipate a volatile yet relatively attractive pricing environment over the next 12-24 months for several commodities despite a highly uncertain economic climate in both China and ex-China markets. In the medium to long term, we continue to anticipate the emergence of a new commodities super cycle driven by growing demand from global decarbonization efforts … Among the base metals, we continue to prefer copper exposure given very low inventories (~5 days) and our forecast of a balanced near-term market, before transitioning to a large medium-term structural deficit due to supply erosion … We recommend 14 of 25 equities under our combined coverage. Our top picks are CCO-T and TECK.B-T; we also highly recommend CS-T and FMT for copper exposure. We also prefer CIA-T, ECOR-L, ERO-T, FCX-N, HBM-T, and IVN-T”