May 12, 2022
European mining stocks have come under pressure over the last weeks due to concerns over a weakening economic outlook taking its toll on demand for metals and rising costs in the mining sector due to higher energy costs. The result: European miners now trade at 6 times forward earnings, a record 50% discount to the European market. We believe this creates an investment opportunity as long term demand for basic resources remains solid. One of our biggest positions in our European portfolio is for example the Swedish miner Boliden.