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Investment Thesis
Copper is still being favored by investors. Historical correlation between world economic growth and investor perception that copper is being difficult to mine makes it appealing in value. However, most economists expect copper to go deficit in the next couple of years.
This is also due to the fact that copper supply is gradually declining and that demand is rising. It is also the only commodity where a lot of M&A activity has occurred. M&A active players are paying as much as 20% to 30% premiums to historical valuation multiples.