Investment opportunities in commodities

The Eurasian energy crisis needs to be analysed. On the one hand, there is new demand from the energy transition and, on the other hand, supply chains need to be rebuilt. This is not just a supply disruption triggered by the pandemic. These are changes that started even before Corona. And they are underinvestments that will continue for years. That’s why the commodity supercycle may last a decade or more. As the second anniversary of the pandemic approaches, the commodity sector is not returning to the days of pre-Corona, but commodity crises are with us. Power outages in China’s major manufacturing hub are due to high coal prices. Reducing CO2 emissions is also a big issue in Europe. Wind and solar power are to be expanded in Europe, but wind and sun are not sufficiently secure.

Electricity prices and also gas and oil prices have risen sharply as a result. For example, Nyrstar NV, a major zinc producer, had to sharply reduce its production capacities in three European plants. This drove up the price of refined zinc. In the long run, however, companies with good zinc projects that can supply the raw material in the future can benefit.

China produces zinc through mining, with the largest producer in the country being Griffin Mining – https://www.youtube.com/watch?v=AXodgyUEKMc – with its Caijiaying mine. In the third quarter, the mine reached throughput of over 100,000 tonnes of material per month for the first time. In addition to zinc, gold, silver and lead metals are extracted from the mine.

In Canada, Osisko Metals – https://www.youtube.com/watch?v=3gtXPK7de0I – is one of the zinc companies. Its important Pine Point project is located in the Northwest Territories, is suitable for open pit and shallow underground mining and also has the necessary infrastructure.

Current corporate information and press releases from Osisko Metals (- https://www.resource-capital.ch/en/companies/osisko-metals-inc/ -) and Griffin Mining (- https://www.resource-capital.ch/en/companies/griffin-mining-ltd/ -).

In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.

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