Copper's Deficit Is Structural, Not Cyclical

Copper has traded in a range for much of the past year despite what we view as an increasingly structural supply deficit.

Supply side

Permitting timelines for new mines continue to stretch beyond eight years in most jurisdictions, while ore grades at existing operations continue to decline.

Demand side

Grid electrification and EV attach rates are both running ahead of the scenarios major forecasters used as recently as two years ago.

Positioning

We hold long exposure through a basket of diversified miners with copper-heavy production profiles and low all-in sustaining costs.