Mining companies share prices have fallen out of sync with other markets as can be seen in this graph.
How long will it be before the sector is back to the position it was in May 2014?
The Metal Tiger asset division has taken a position in many companies as they believe we are at the bottom of the cycle. If they are correct it can be seen from this graph that mining sector companies have the potential to make significant share price gains.
Metal Tiger also have the added driver that it has, with their joint venture partner MOD Resources an interest in a potentially enormous copper prospect in Botswana.
With China accounting for 40% of the copper market and their economy increasing it is easy to see why major businesses in the sector are looking to secure copper resources. Whilst the growth in the China economy is not now predicted to be as great as previously forecast the growth will have a significant impact on copper demand due to their dominance in the market.
We also have countries such as India who are forecast to double their copper requirements.
MOD/MTR are in an enviable position and should be able to maximise their returns due to the size of the Botswana copper prospect and its discovery at a time when copper resources are in demand.