The mining commodities market is struggling – gold and copper are the best examples. Like the prior post I discussed about the gold bear market, the same can be said for other mining commodities.
Many companies, who owns significant number of producing assets and has many exploration upside potentials are now undervalued severely.
Some evidences suggest that this bear market will not last longer and is nearing its end; long-term investors are seeing this as they invest in downed commodities such as gold and copper to undervalued companies, hoping for the recovery with enormous capital gains.
Although there are countless examples of this happening, one good example is a recent attraction of numerous buyers for Glencore Xstrata’s Peru copper mine with the estimated capex of $5.2 billion for the project, which is anticipated to go into production (400,000t/y Cu) near the end of 2014.