Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Could you please make some comments on where you see the Copper price heading from here...and whether you see SFR as a reasonable prospect going forward or whether it might be time to exit (with a profit...it has taken a downward path of late) Many Thanks and wishing all at MM a restful Easter break. Don
Hi Don,
As you know, MM is bullish the reflation trade through 2021/22 and a rising Copper price would fit into that view, however in the short term we’re seeing the strong rally in the commodity sector cool and some money flow back into the likes of Technology which has lagged in 2021 to date. Talk of deficits in the copper market and more bullish rhetoric from the masses has corresponded with a short term top as it so often does. We recently sold our Copper ETF and Oz Minerals (OZL) from our flagship growth portfolio on the expectation of buying them back at lower levels – we still think that is achievable.
We like copper but further weakness into the $370 level would not surprise.
In terms of Sandfire Resources (SFR) I view this as OZL’s poor cousin, lesser quality assets, shorter mine life and it’s priced accordingly. For our portfolio’s we’re likely to stick to the quality end of town in Oz Minerals, however if Copper does break to new highs, albeit from lower levels as we think it will, SFR will follow it.
Happy Easter Don – hope you have a great one with family & friends.
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