Signs Point to Longer-Term Support for Resources
Resource equities notched their fourth consecutive year of positive performance in 2022. Commodity price support fueled by inflation, ongoing supply constraints and resilient economic growth has undoubtedly been a key catalyst for company returns in the space. However, a fundamental shift in business strategy—undertaken by many traditional commodity producers beginning nearly a decade ago—can also be credited for companies’ higher cash flows and earnings today. Commodity supplies now appear to be hanging in the balance, with potential post-lockdown demand growth looming in China. Will producers remain steadfast in their commitments to financial prudence or leverage this one-in-a-lifetime moment to capitalize on growth?
As always, we believe that the global energy transition remains a vastly underappreciated “x-factor” here. Policy support, emerging technologies and implicit demand growth for non-traditional metals and minerals are coalescing and bringing about exciting, new—and potentially disruptive—opportunities.
- Developing macroeconomic and industry themes
- Varying approaches to accessing the global energy transition
- Several companies we are most excited about in 2023
February 13, 2023
11:00 AM US ETDuration 60 MIN
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