Which company (domestic or international) would be a good choice for diversified metal production?

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Governments have been pushing the “green” agenda for a while now, and it is very obvious that a number of metals will be in huge demand for the foreseeable future. Which company offers the largest exposure to these commodities, is presently in good financial shape, and is not encumbered with huge amounts of litigation dealing with ESG matters?

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Asked on June 5, 2022 8:59 am
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Thank you. I guess my question was towards the large companies, but they seem to have so many legal issues following them! Maybe Tech and Ivanhoe are the direction to go.

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Posted by Al Haggart
Answered on June 8, 2022 1:24 am
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Hey there,

Tough question to answer considering the are hundreds of metal companies listed on the Index. That being said if you want reliable and broad exposure to a variety of metals, then you'll have to look at some of the larger caps which have a more diversified asset base. Think of companies like Rio Tinto (RIO), BHP (BHP) and Glencore (GLNCY). They will give you broad exposure to a variety of different metals.

In Canada, you could consider Ivanhoe Mines (IVN.TO) and Teck Resources (TCK.B) which have more diverse asset bases. Otherwise, most of the companies are either small caps, exploration & development companies or focused on one metal in particlar. The other option is to go with a broad Metals ETF which will give you exposure to multiple metal companies. Two ETFs worth looking at include:

XMA—iShares S&P/TSX Capped Materials Index ETF - CAD
BASE—Evolve Global Materials & Mining Enhanced Yield Index ETF - CAD Hedged (or unhedged .B)

Really depends what your goal is. It will be very difficult to find a single company that has diversified exposure to all those types of metals which is why the ETF route may be the better way to go in this case.

Mat

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Posted by Mathieu Litalien
Answered on June 7, 2022 2:04 pm