A ‘strongly undervalued’ midcap miner

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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


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Bob Lidster

Thank you for these insights as it confirms my thoughts, probably one of the most underestimated management teams in mining.

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