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Central Asia offers unrivalled income

We think now is a good time to dip back into one of our favourite mining stocks.
August 3, 2017

Resources stocks are not designed to be reliable, utility-like investments. The prize – and substantial risk – of exposure to commodities’ inherent volatility is leverage. Buy at the right time, and few asset classes or sectors can match the gains. Conversely, investors who have watched the miners’ share price convulsions in recent years might be tempted to avoid the sector entirely. But for readers taking this latter course, we'd suggest pondering copper producer Central Asia Metals (CAML), one of Aim’s gems, and the closest thing to a bond proxy you will find among mining equities.

IC TIP: Buy at 218p
Tip style
Income
Risk rating
Medium
Timescale
Medium Term
Bull points

Rising copper price

Bear points

Limited growth

Single project risk

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