Ciaran Ryan
3 minute read
2 Feb 2021
7:05 am

Mining bouncing back with a bang

Ciaran Ryan

It’s worth noting that copper and the raw materials index are closely correlated to emerging market stocks.

Mines are being allowed to re-opened by government.

Goldman Sachs sees the beginnings of another commodity super-cycle of the kind that was rudely interrupted by the 2008 financial crisis. That scenario is predicated on a green industrial revolution, with policymakers prioritising the goals of full employment and increased income for low-income households, which in turn will drive demand for commodities and power a capex-driven recovery. It’s a bold call by the bank, and not one shared by everyone. A good bellwether for industrial production is the copper price, up more than 30% over 12 months. Copper currently sells at around $8 000 a ton, but Goldman Sachs sees it...