More Confirmation
Globe says Lundin, Ivanhoe have been rallying of late
2024-05-27 08:35 ET - In the News
See In the News (C-LUN) Lundin Mining Corp
The Globe and Mail reports in its Saturday, May 25, edition that copper prices are soaring, fueling the rally in the shares of smaller producers such as Ivanhoe Mines and Lundin Mining, which are up 47 per cent this year. The Globe's David Berman writes that Citigroup analyst Maximilian Layton says, "The year-to-date rally marks the beginning of copper's second secular bull market this century, with copper miners set to print massive margins for the next two to three years at least." Copper's new glow comes after better-than-expected global economic activity, as fears of recession fade and China supports its own growth with fiscal stimulus measures. However, Mr. Berman says there is more going on here. Copper supply is notoriously slow to respond to rising demand, given the enormous regulatory hurdles and high costs associated with developing new mines. That means copper producers could struggle to feed an increasingly copper-hungry economy. National Bank analyst Shane Nagle says, "I think the long-term picture is well-understood to be fairly constructive, so I don't think that we've necessarily seen the highs" for copper. Mr. Berman says Lundin shares are up 20 per cent since he sold his shares in March.