Copper and gold stocks: Red 5, BMC Minerals among companies fuelling Victor Smorgon’s 40pc returns

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The Melbourne firm’s global fund has shot out of the blocks again this year thanks to record gold and copper prices. It’s also very bullish on one newly listed mining stock.

Already a subscriber?Peter Edwards is chairman of Victor Smorgon Group and co-chief investment officer of the Global Multi-Strategy Fund, the portfolio of which has returned 40.6 per cent annually since its 2019 inception.The global fund has returned 22.6 per cent so far this financial year. What has driven that performance?

. We like miners with strong leadership and proven records in creating shareholder returns and value low jurisdictional risk and higher-grade orebodies with expansion potential.Within the developer space, we believe there are disproportionate potential returns in high-quality projects and managers such as Canadian-listed Ngex Minerals, which has a fantastic track record of major discoveries and historical shareholder returns.

Do you expect the disconnect between gold prices and mining stocks to abate? Which stocks are best positioned? Assuming the future rhymes with history, the greatest gains will be with smaller, higher-cost gold producers and explorers. For this reason, we like Ramelius Resources and Canada’s Agnico Eagle.Copper miner Metals Acquisition listed on the ASX this year after acquiring the NSW CSA copper mine in 2023. It’s run by Mick McMullen, who has a track record of turning around major mining companies globally.

 

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