Smart Money: "The Metals and Mining Share Revaluation is in its Infancy."

For the price of Apple, you can buy the world’s 100 most valuable miners and have enough left to snap up three years of global copper mine production and buy 2022’s seaborne iron ore—all of it.

Intro/Backdrop

We’ve been re-educating ourselves on the mining industry. Once upon a time we consulted for miners on flat price hedge books, and have a background in fundamental analysis, though that skill has long since atrophied.

But we believe the next 10 years will not be like the last 20, and have said as much. The whole western economic landscape must change due to the East’s rise.

In short, the West’s hand has been forced, real assets matter again for multiple overlapping (collateral, renewables, industrial, monetary etc) but different reasons, and now we must get up to speed on the particulars

And since we started noting and analyzing the new economic landscape potential —from de-globalization, to the rise of mercantilism, to the shortage of collateral, and finally to the West’s bizarre belief that oil is dead, that CHIPS are the future economic engine— we, like you, are now looking at ways to implement that opinion for a 10 year play.

We think BOA’s recent report on the greening of Gold mining gave us a good starting point.

Our takeaway from it: Buy Gold miners that are likely to add copper mining. Buy Copper miners with Silver exposure. And for G-ds sake, buy Silver miners simply because Silver is the most important, most diverse, and most tech friendly metal out there.

But there is risk like nationalization, manipulation, and confiscation of wealth¹. So we’re taking our time.

Find attached an excellent summary excerpt of the ridiculously wide valuation gap between metals and tech companies. We think it is compelling and hope you do as well.