Q: I’ve seen multiple articles now from some very established sources, stating that we currently do not even come close to producing the amount of copper required to meet the political goals related to the reduction in the reliance on fossil fuels. More mines will be required, but they take decades to construct. In the meantime, will this be beneficial to current producers like Capstone? If so, is Capstone a good company or are there other companies that are better? Thanks
5i Research Answer:
The theme noted is popular, but also likely the reality. Copper does look good longer term, notwithstanding its typical business-cycle cylicality. We like CS a lot for its growth potential and as a takeover possibility. FCX, LUN and TECK.B also look good to us today.