Energy, Gold, and Food: Your 2023 Investment Outlook

Summary

This week's Money Miners podcast dives into a rapidly shifting market landscape, with expert Anthony Cavana sharing insights on where to find value amidst geopolitical uncertainty and economic volatility. Cavana highlights the structural story of rising demand for Electric Vehicles and Energy Storage Systems, which he believes will keep refining margins elevated for longer due to persistent refinery outages. He also points to the potential for higher natural gas prices due to supply constraints in Qatar, benefiting Australian gas plays like Comet Ridge and Equus Energy. Cavana emphasizes gold as a crucial hedge in uncertain times, noting its historical outperformance during market drawdowns. He also discusses potential challenges in the food sector due to El Niño conditions, impacting fertilizer supply and prices. For specific investment ideas, Cavana favors copper exposure via Havilah and Sandfire, sees strong upside in gold miners like St Barbara, Genesis, and Westgold, and is bullish on lithium's structural demand story, with a focus on projects like Wildcat, Pemba, and Q2. He also discusses the surprising strength of thermal coal, driven by robust demand and favorable borrowing costs for established miners, and touches on the increasing use of the Chinese Yuan in commodity markets.