Valuentum Exclusive Analysis for the Discerning Investor

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Jun 4, 2020

BHP Benefiting from an Industrial Rebound in China
Image Source: BHP Group – Fiscal 2019 Annual Report. In recent months, iron ore futures prices have surged higher due to an ongoing recovery in China’s industrial sector and supply concerns in Brazil, which has culminated into the Dalian Commodity Exchange’s September 2020 iron ore deliveries hitting a record high since the futures contract was first launched in 2013. Pivoting to copper, three-month copper futures prices based on trading activity on the London Metals Exchange have also perked up on the back of an apparent recovery in Chinese economic activity. Rising metals prices bodes well for major and minor miners around the globe, including BHP Group.

May 21, 2020

Southern Copper’s Payout Is Not That Healthy
Image Shown: An overview of Southern Copper’s core operations in Mexico and Peru. Image Source: Southern Copper Corporation – May 2019 IR Presentation. Copper (symbol Cu, atomic number 29) is an essential building block of modern civilization as it is used as a conductor for heat and electricity. Electrical components, utility-scale electrical transmission systems, residential and commercial heating appliances, electric vehicles, and much more all rely on copper products (electromagnets, heat exchangers, heat sinks, integrated circuits, printed circuits, copper wiring, and copper fittings are all examples of products that contain copper). The largest consumer of copper is China, accounting for roughly half of global demand making the Middle Kingdom an essential part of the copper supply chain. On the other end of the supply chain, it’s companies like Southern Copper Corp that develop and operate the copper mines in major producing regions that enable global supply to meet demand. Copper plays an essential role in the transportation, industrial, consumer goods, utilities, and construction industries/sectors. The pace of construction activity in China has an outsize impact on global copper prices.

Nov 10, 2016

Assessing Reactions to Trump’s Victory
Image Source: Gage Skidmore. Donald Trump will be the 45th President of the United States of America. Let’s dig into some of the reactions across the market. We’re keeping our cool.

Aug 28, 2015

3 Observations
The wild week that ended August 28, 2015.

Jul 7, 2015

Here Comes the Correction
Correlations are going to one, as expected.

Jan 14, 2015

BHP or Rio Tinto? Is That the Right Question?
We only have modest exposure to the highly volatile commodities markets...for this very reason.