PICK: Mining Companies Could Outperform The Metals

seekingalpha05-24

Monty Rakusen Base metals are not just infrastructure building blocks; they are also essential industrial construction components. In recent years, the global focus on addressing climate change has ...

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In recent years, the global focus on addressing climate change has ...</p>\n\n<a href=\"https://seekingalpha.com/article/4695324-pick-mining-companies-could-outperform-the-metals\">Source Link</a>\n\n</div>\n","source":"seekingalpha_fund","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>PICK: Mining Companies Could Outperform The Metals</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPICK: Mining Companies Could Outperform The Metals\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-24 01:54 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4695324-pick-mining-companies-could-outperform-the-metals><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Monty Rakusen Base metals are not just infrastructure building blocks; they are also essential industrial construction components. In recent years, the global focus on addressing climate change has ...</p>\n\n<a href=\"https://seekingalpha.com/article/4695324-pick-mining-companies-could-outperform-the-metals\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4535","symbol_name":"淡马锡持仓","start_time":0,"source_url":"https://seekingalpha.com/article/4695324-pick-mining-companies-could-outperform-the-metals","article_id":"2437954792","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/96390218/image_96390218.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2437954792","pubTimestamp":1716486888,"columns":[],"sourceInfo":{"source_id":"seekingalpha_fund","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Monty Rakusen Base metals are not just infrastructure building blocks; they are also essential industrial construction components. In recent years, the global focus on addressing climate change has si","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4535":"淡马锡持仓","BK4585":"ETF&股票定投概念","PICK":"iShares MSCI Global Metals & Mining Producers ETF","BK4588":"碎股","BK4550":"红杉资本持仓","FDN":"First Trust Dow Jones Internet I"},"translate_title":"选：矿业公司的表现可能优于金属","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"PICK":1,"FDN":0.9},"content_text":"Monty Rakusen Base metals are not just infrastructure building blocks; they are also essential industrial construction components. In recent years, the global focus on addressing climate change has significantly increased the demand for metals crucial for green energy initiatives. The expanding demand side of the metals’ fundamental supply and demand equations reflects the sector’s increasing relevance and supports higher prices. As demand increases, supplies must keep pace, putting pressure on the leading mining companies that extract the ores from the earth’s crust and process them into the metals. Goldman Sachs has dubbed copper, the leading nonferrous metal, “the new oil,” due to its applications in electric vehicles and wind turbines. Nickel and lead, critical ingredients in EV batteries, are also in high demand. This global demand surge has put pressure on mining companies to ramp up production. As supplies struggle to keep pace with the demand, prices have surged, benefiting the leading mining companies. The iShares MSCI Global Metals & Mining Producers ETF (BATS:PICK) holds shares in these companies, offering investors a potential opportunity to capitalize on this trend. Copper is the leading base metal - Rallies in Q2 Copper leads the base metals that trade on the London Metals Exchange. Copper prices (HG1:COM) were up around 2% in 2023 and rallied around 3% in Q1 2024 before taking off on the upside. Nearby COMEX copper futures settled at $4.007 per pound at the end of March, with the three-month LME forwards at $8,867 per ton.   Ten-Year COMEX Copper Futures Chart (Barchart) The ten-year chart shows copper’s 29.7% ascent since the end of Q1 2024 to the most recent record $5.1985 per pound. Copper ran out of upside steam at nearly $5.20 per pound and corrected to the $4.80 level, still significantly above the Q1 2024 ending price.   Ten-Year LME Copper three-Month Forward Chart (Barchart) At the most recent $11,104.50 record high, three-month LME copper forwards were 25.2% higher than at the end of Q1 2024. LME copper forwards corrected lower COMEX futures on May 22. As of May 22, the following base metals were higher than the Q1 closing levels:  Copper at $10,419 per ton was 17.5% higher than the Q1 $8,867 closing price. Aluminum at $2,636.50 per ton was 12.8% higher than the Q1 $2,337.00 closing price. Nickel at $20,336 per ton was 21.4% higher than the Q1 $16,749 closing price. Lead at $2,314 per ton was 12.6% higher than the Q1 $2,055.00 closing price. Zinc at $3,062.50 per ton was 25.6% higher than the Q1 $2,439.00 closing price. Tin at $33,510 per ton was 22.1% higher than the Q1 $27,451 closing price.  Copper and the other LME base metals prices have increased significantly since the end of March. Sanctions on Russia favor higher base metal prices Russia is one of the world’s leading producers and processors of base metals. In April 2024, Washington, DC, and London prohibited the London Metals Exchange, Chicago Mercantile Exchange, and other metals exchanges from accepting new aluminum, copper, and nickel produced by Russia. The U.S. and U.K. also banned Russian metal imports. The sanctions are another step in punishing Russia for its ongoing war in Ukraine. The sanctions allow metal produced before April 13 but prohibit new metal from flowing into the exchange warehouses. Meanwhile, China’s close relations with Moscow continue to enable Russian metals to flow into Shanghai Futures Exchange warehouses. Since China is the leading metals consumer, time will tell if the sanctions are toothless or cause Russian production to trade at discounts, limiting Moscow’s revenue flows. However, any sanctions restricting trade and the free flow of metals and commodities worldwide can impact prices. Metals prices rallied after the U.S. and U.K. announced the latest trade sanctions and restrictions. Mining shares should move higher with nonferrous metals prices Rising nonferrous metals prices are bullish for the world’s leading mining companies extracting the ores from the earth’s crust and processing them through smelting and refining.   Largest Publicly Traded Mining Companies by Market Cap (companiesmarketcap.com) The chart highlights the world’s leading mining companies that produce the base metals trading on the London Metals Exchange. PICK owns the cream of the crop mining companies The iShares MSCI Global Metals & Mining Producers ETF is a pick-and-shovel plan on the world’s leading mining companies. PICK’s top holdings include:   Top Holdings of the PICK ETF Product (Seeking Alpha) As the chart shows, the PICK ETF owns shares in most of the leading mining companies. At $44.33 per share, PICK had $1.31 billion in assets under management. The ETF trades an average of 328,083 shares daily and charges a 0.39% management fee. However, the $1.81 annual dividend translates to a 4% yield, which more than compensates for the ETF’s expense ratio. Bull markets rarely move in straight lines In 2023, the PICK ETF posted a 5% gain. In Q1 2024, it moved 3.18% lower, closing at $41.70 per share at the end of March.   Monthly Chart of the PICK ETF Product (Barchart) As the monthly chart illustrates, at $44.33 per share, PICK was 6.3% higher than the Q1 closing level on May 23. If base metals prices continue to climb, expect PICK to go along for the bullish ride. However, even the most aggressive bull markets rarely move in straight lines. Pullbacks are common, so buying on price weakness tends to be optimal.  iShares MSCI Global Metals & Mining Producers ETF’s technical resistance is at the January 2023 $47.70 high, the April 2022 $53 peak, and the February 2012 $56 record high. Mining companies often outperform the metals on the upside because of the mining business’s leverage. If base metals prices continue to climb, PICK could be on a path to a record high over the coming months and years.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2437954792"}