A ‘strongly undervalued’ midcap miner

Livewire Exclusive

Livewire Markets

Copper may have stumbled recently, however a constrained supply side paints a very bullish picture over the long-term. Resources expert Stephane Andre, from Alphinity Investment Management, outlines the dynamics of the metal’s price in this short video, with a copper stock that he says is ‘strongly undervalued’. 

 

Key points 

  • Copper is used worldwide across transport, electricity, and appliances, and is a very good indicator of global activity.
  • The copper price has been declining recently, principally due to the trade war and sentiment, but also because of a rising US dollar. Longer term, the supply-demand balance is a positive driver for copper as supply is very tight.
  • The copper demand picture is a tailwind for OZ Minerals ($3 billion market cap, OZL), but the company has a suite of assets with their own positive fundamentals. The mine-lives of key assets: Carapateena and Prominent Hill, should both increase. The market ascribes little to West Musgrave and Avanco though both have significant potential.
  • OZ Minerals stock is ‘strongly undervalued’. 

Further insights

Alphinity’s aim is to deliver consistent outperformance for investors by investing in quality, undervalued companies, with underestimated forward earnings expectations. Find out more


1 stock mentioned

Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.