Equity Risk in Commodity Bull Markets (#2/4)

Presented by

Daniel Stoianov, NTree International

About this talk

Most mines are in low-mid income countries that have fared worse than high income countries due to Covid. Contractual obligations were decided in the previous bear market for commodity miners and their governments, so with prices on the rise governments see a chance to reap more profit from their natural resurce exports by raising taxes and royalties. Furthermore, increased risk of nationalisation from left-wing governments such as Chile and Peru threatens stock prices of these mining companies. These tax and nationalisation risks impact valuation prices for mining equities when commodity prices themselves might be rising. Is it best to hedge mining exposure with direct metal investment? Professional investors can expect to see how a potential commodity super-cycle, coupled with the changing environment from Covid-19, has had an impact on the bifurcation of mining equities and commodity prices themselves.

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NTree’s goal is to educate European investors on the investment opportunities in the Chinese and Commodities markets. As the Chinese economy continues to grow at breakneck pace and China remains at the forefront in innovation in high-tech sectors, the investment case for China is stronger than ever. Meanwhile, world market volatility further highlights the necessity for European investors to consider adding Commodities to their portfolios both for diversification, and for momentum. We believe that both phenomena are inextricably linked, and present unique opportunities to the discerning investor - we intend to support investors in uncovering those opportunities.