Hudbay Minerals (HBM-T)

His choice in the mining space, in his global equity growth fund.

One of his primary holdings right now in the mining sector. Well positioned, given the demand for copper being what it is. Last quarter was probably one of their best ever. Gold production was better than hoped. A good place to look if you want a mid-cap mining company.

Copper's been all over the place, and really down lately on a weaker China. Whole copper complex trades at a premium because they know there's this thirst for copper amid shortages. Materially paid down debt. Trades at discount (4.8) to large-cap peers (5.6). He models 40% EPS at a 31 PE.

Was risky, de-risked to a large extent. Copper's not for the faint of heart. A whippy player, but a winner if it continues to execute well and copper does well.

Doesn't own shares. Considers company a collection of Tier 2 deposits. Prefers better assets in Tier 1 assets. 

Excellent chart that continues to perform. Expecting further strength. Would recommend holding until market cycle turns. 

He wanted exposure to EV and HBM produces copper (for EVs). This has worked veryw ell.

Just because large institutions buying this stock - not always a good reason to buy. Would recommend looking into the quality of business. Current share price is too high in order to invest. Would wait for share price weakness before investing. 

Huge rally. Has now come down in RSI ranking, along with other metal producers. So far, looks like a correction within an uptrend, holding above the early May low of $11-11.50. Last couple of days, price of copper has started to pick back up again, starting to stabilize, and may see stocks do the same.

It is a top copper play and added copper production at the right point in the cycle. However there is political risk in Peru where it has substantial holdings.

Not the highest-quality name. Acquisition in Colorado. Problematic balance sheet, are they paying down debt fast enough for the market? Very leveraged to copper prices. If copper goes to $5, EPS growth on this name is fabulous. Don't buy right now.

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.