In today’s briefing:
- Copper Breaches 10k USD: Easy Journey to 11k USD/Ton On Lower Inventories In The Short Term
- Iron Ore: Small Bounce to 100 USD/Ton On Oversold Levels
- Silvercorp Metals (TSX/NYSEAM: SVM): Diversified Growth with Compelling Valuation
Copper Breaches 10k USD: Easy Journey to 11k USD/Ton On Lower Inventories In The Short Term
- Inventory depletion across the LME and SHFE continued as copper prices breached the 10k USD level to end the week 3.7% higher.
- The COMEX-LME spread breached $1,000/ton again, leading us to be confident that there will be a further rally in the short term.
- We see an easy journey to 11,000 USD/ton on a weaker dollar, stronger COMEX premiums, depleted inventory levels, and lower-than-expected global production.
Iron Ore: Small Bounce to 100 USD/Ton On Oversold Levels
- Iron ore prices rose 2.3% WoW from oversold levels since our last report, Iron Ore Tracker (23-June-2025): Iron Ore Due for A Small Bounce? to $95/ton
- In the short term, prices could reach $100/ton, but persistent medium-term supply overhang from the Simandou project may pressure prices down to $85/ton.
- We like Fenix Resources (FEX AU) for its massive ramp-up from 1.5 to 4.1 million tons. read: Fenix Resources (FEX AU): Q3 FY25 Concall Update + CZR News
Silvercorp Metals (TSX/NYSEAM: SVM): Diversified Growth with Compelling Valuation
- Over the last few years, Silvercorp has delivered steady revenue and earnings growth, supported by strong margins and consistent free cash flow.
- It is now expanding beyond China with the development of the El Domo copper-gold project in Ecuador and ramping up investment at Ying and Kuanping.
- Despite this growth visibility and a net cash balance sheet, the stock trades at a meaningful discount to peers across P/E, EV/EBITDA, and FCF multiples.
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