(Sharecast News) - Analysts at Bank of America sounded a "still broadly positive" note on the outlook for European Metals and Mining equities.
However, in the case of copper miners, they believed that companies' share prices were already discounting the various positive trends for the sector, including the drought in Chile, Latam politics and the slow ramp-up of new mines.
Most share prices seemed to be pricing in a $9,500-10,000 per metric tonne price of copper.
Iron ore prices on the other hand appeared to offer "tactical upside" from about $130 per tonne at present to $150-160.
The reason for that were fairly low port inventories, low stockpiles at steel mills, seasonally strong demand for steel and production and "underwhelming" shipments out of Brazil.
Hence, their recommendation to 'buy' shares of Rio Tinto, which derived roughly 70% of its earnings before interest, taxes, depreciation and amortisation from iron ore.
They also recommended buying gold and uranium, saying that the former was "calling" on the $2,000/oz. level.
"Consider Crypto's "wobble" vs. gold 10,000 year "real asset" history. We see a pick-up in gold M&A. We like CEY turnaround & growth story," they said.
As for uranium, nuclear energy was a part of the solution to solving the twin challenges of decarbonisation and energy independence.
Centamin PLC (CEY)
Rio Tinto (RIO)