At last month’s Denver Gold Forum, the most prominent corporate event in the gold mining calendar, some attendees were just as interested in the precious metal producers’ copper holdings. Analysts noted the clear shift in focus from professional investors, who had previously seen the red metal as a valuation drag.
Free cash flow positive
Dividend-paying
Expensive production and rising costs
Intensive capex and project risk
Weaker metals prices
Permitting uncertainty in Peru
Like gold, copper is not trading strongly right now but has good long-term drivers. At the same time, gold is getting more expensive to mine, and there is not so much to recommend it as a saleable product because of rising interest rates and the seemingly unassailable strength of the US dollar.