INN caught up with Gianni Kovacevic to talk about PDAC, commodities to look at and, of course, the copper story in 2019.
Speaking with the Investing News Network in Toronto while at the Prospectors and Developers Association of Canada (PDAC) conference, CEO of Copperbank Resources (CSE:CBK,OTC Pink:CPPKF) Gianni Kovacevic threw a curveball, encouraging speculators to take a look at helium.
“It’s a fascinating commodity. This is not for balloons — it’s a high-tech coolant,” said Kovacevic.
“All the big technology companies are putting it in their servers, and they use less energy.”
He said that as a boom commodity at the moment, it is well worth a look, though finding ways to invest is “pretty hard.”
“There’s an old adage in gold mining — the best place to find a gold mine is next to a gold mine.
“The most prolific helium basin in history was on the Arizona-New Mexico border. There’s a little junior — of course, for disclosure, I do own it — Desert Mountain Energy (TSXV:DME), [that] assembled a strategic land package when helium was sleepy before it became this commodity of interest.”
“Like cannabis, like crypto, like lithium, like cobalt — they all became [front-page news on] the Wall Street Journal and Barron’s and all that — no one’s talking about helium, and it’s in a boom market.”
Besides his interest in helium, Kovacevic talked about how copper is tracking in 2019, saying that it is diverging from oil.
“I have been saying for three or four years that [copper] will decouple from oil — price-wise, demand-wise, the growth rate — and that’s exactly what’s happening,” he said.
“I know other people contest that they use coefficients of math and other nonsense — just look at a 20-year graph. Put copper in one color, oil in the other color — this will continue to decouple.”
According to the expert, oil is the dominant commodity. “If you look at 20 other commodities and overlay them to oil, they have this interesting pattern of going up and down at the same time — that’s going to change.”
For the rest of 2019, Kovacevic noted that copper supply will be tight going forward.
“The market yawned” when Grasberg announced a lower output, he said. “One more major mine has something like that happen, [and the] market won’t be yawning.”
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Securities Disclosure: I, Scott Tibballs, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.