Junior Stock Review Founder Brian Leni is bullish on zinc and nickel, and at this year’s PDAC convention he explained what he likes about those commodities.
Speaking about zinc, Leni said lack of supply is part of the reason he’s optimistic. “We just can’t develop mines quick enough to meet the demand, so the zinc story is very strong in my view,” he said.
While some have expressed concerns about supply from China and major miner Glencore (LSE:GLEN) coming back online, Leni said he isn’t too worried.
“The fact is, the Glencore tonnes that they removed from the market were some of their poorest assets. And the other side to it is those tonnes don’t come on overnight — it may take six months, and in actual fact, in the whole market scheme 500,000 tonnes isn’t a lot,” he noted.
In terms of nickel, Leni said the metal will play a large role in the electric vehicle space in the coming years. “‘Position yourself well in quality companies’ is a good mantra,” he said. For Leni, part of what makes a quality company is management. “I need to see a level of trust,” he said.
Watch the video above for more insight from Leni, including how he chooses stocks, or click here to view our full PDAC playlist. The transcript for this interview will be added shortly.
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Securities Disclosure: I, Charlotte McLeod, 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.