We Warned You

In 2020, we met with a tiny Canadian tech company that had a compelling story

Since our launch, way back in 2020, Mangrove Investor pounded the table on the impact that electrification would have on metal prices. We jumped up and down, shouted from the hill tops, did everything we could to let you know that this was a huge trend. 

And for those of you who took our advice, it’s about to pay off. Copper prices hit all-time highs recently:

Copper, the metal that’s in everything electric, took off in 2024. The demand for the red metal hasn’t slowed. And supply shortages are worse than analysts expected. The academic forecasts are suddenly reality. And the price soared in response. 

But it isn’t just copper. Silver, the backbone of solar power, caught wind too. You can see what I mean here:

This rise in metals prices has hit major producers. Giant miners like Rio Tinto (NYSE: RIO), BHP Group (NYSE: BHP), and Hudbay Minerals (NYSE: HBM) are all at or near 52-week highs.
However, it hasn’t trickled down to the junior markets yet. The TSX Venture Index, the Dow Jones Industrial Average of junior mining stocks, hasn’t even hit a one year high. You can see what we mean here:

That means it isn’t too late for investors to get into this trend. The answer to “where should I invest” is to move down the market scale. There are still companies developing and exploring for new projects that will benefit from this trend…but haven’t moved yet. 

So, for investors looking for current investment ideas, look at those companies down the food chain.

For the Good,

The Mangrove Investor Team

Numbers You Need to Know

6.5 Billion Tons

Between 2022–2050, the energy transition could require the production of 6.5 billion tons of end-use materials, 95% of which would be steel, copper and aluminum. (Energy Transition Commission)

0%

The chance hitting the Net Zero target without green metals.  We see green metals (without which the Net Zero target will not be possible) as constituting one of our most exciting and compelling natural resources investment themes. (Van Eek Securities)

50%

An electric car requires six times the minerals of a conventional car and a wind plant requires nine times more mineral resources than a gas-fired plant. Since 2010 the average amount of minerals needed for a new unit of power generation capacity has increased by 50%. (International Energy Agency)

What’s New in Sustainable Investing

Metals investment: the darkest hour is just before the dawn

Things often seem at their worst just before they get better. In terms of meeting our net zero 2050 scenario, we’ve reached a watershed moment where the need for metals investment has become unquestionable. (Wood Mackenzie)

Companies See Sustainability Integral to Long-Term Value Creation4

Companies’ top reason for pursuing a sustainability strategy is the opportunity for value creation. The biggest hurdle? The high level of investment that’s needed.(Morgan Stanley)

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