- Structural demand shift in commodities caused by a phase out from fossil-fuel vehicles to EVs is likely to accelerate commodities demand in the next decade.
- Relative global purchasing power is higher today than 20 years, accelerating potential swings higher in commodities prices.
- Relatively low Capex weighs positively on EBITDA-Capex compared to historical periods, boosting Vale's stock price.
- 400 Mtpy production capacity will not cause an oversupply in global markets as it is outweighed by rising demand.
- $40 price target in the next 12 months.
For further details see:
Vale: Commodities Party Has Just Started