Hudbay Minerals (HBM.TO)

It has some very good assets but it is hard to figure out just what it is going to do. Copper didn't come off as expected and is still quite strong. He likes Lundin in the mining space and it fits into his income strategies. He also likes Encore Wire (WIRE), the largest copper recycler in the U.S. and is not a depleting resource business. It trades at a reasonable multiple and its growing consistency takes out the volatility. It has $1/2 billion in cash and is buying back stock.

High USD hurting copper prices. Sputtering China. Recession fears. Capex for recent acquisition higher than anticipated. Copper market really tight. Starting to get debt under control. Decent valuation around 10x 2025 earnings. 

If copper hits $4 in 2024, and $4.50 for 2025, sees them growing well at 62%. Under-owned, perhaps its time has come.

Good, not great, not top tier among base metal companies. Will do well over 10 years, but there are better choices.

A solid name. Well-run company and position properly for growth in copper prices that he expects next year.

Is entering seasonality, because the economy tends to pick up now which benefits the metals sector. Hudbay can benefit. The chart has fallen since early 2022 as it consolidated. Now, the stock is positioned well. Likes it.

Prefers TECK.B. He's attracted to copper in the longer term. In the very near term, the commodity will be weighted by overall economic conditions. TECK.B is more a restructuring play than a copper play right now; well run, wide range of assets; world-class coal assets are undervalued; cashflow is more stable.

Mining higher-grade ore. Increased demand for metals like copper and zinc makes the stock inexpensive here, well below book value. New mines are costly to build. Not a dividend stock, but good prospect of capital appreciation. Sees upside potential to $10-12 over the next few years.

He was buying at the bottom. Around $4 is an okay time to start accumulating shares, based on the chart. He expects rotation as oil stocks probably pull back (he take profits) and minerals might find a bid.

He believes in the copper story, not enough has been produced. Balance sheet is levered. Peru mine has execution and jurisdiction risks. Looks good recently. Close to inflection point of free cashflow positive. Cheap. Buy here if you can tolerate the risk.

He likes commodities and is trading this. Anything copper and mining are good to enter now. He expects this to return to previous highs in its range.

Does not own shares in company, however, is bullish on Copper sector.
Unsure how projects in British Columbia will pan out.
Arizona assets have been difficult to develop.
Rising costs and social approval major hurdles. 

Cheap, with good upside potential. About 30% discount to book value. With EVs and the demand for alternate forms of power, electricity comes into its own. You need to have a way of moving it around, and that's copper. The copper market is a mess, with demand picking up and supply under pressure. Yield is 0.32%.

It is a very volatile stock so he trades it. There are no momentum indicators or catalysts now but copper is a good long term commodity. You could maybe buy if there is a pullback to $5.50.

Still hoping for a boom in copper prices as China reopens and from EV demand. They bought Copper Mountain, and have gained permits via Copper World. Two potential tailwinds. HBM can't remain this cheap and must rise. 

Acquiring Copper Mountain, which has a very different risk profile and more leverage. HBM's future is predicated on previous acquisition in Arizona that's been mired in bureaucracy. He's always concerned when development NAV is a high percentage of overall value. Risk of execution becomes more acute. He prefers TECK.B or FM, which are at the stage of reaping rewards of free cashflow.