There are three specific commodities we see as having a positive outlook over the short-term. Cobalt is a standout. With the battery industry now consuming 42% of refined cobalt, the metal is arguably more strongly leveraged to the surging battery market than lithium. After drifting down for several years, the LME quoted cobalt price has gained 10% in recent months. Terra’s preferred exposure is Canadian-listed eCobalt Solutions. After cobalt, we like high spec metallurgical coal. Higher-grade metallurgical coal is always in relatively short supply, and as the market has tightened, the price has recently bounced. Our preferred exposure is Atrum Coal. Zinc is also attractive with modest demand growth and supply cuts seeing the price up 50% since the start of 2016. Our preferred exposure is emerging producer, Red River Resources.



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