European Capital Partners - With a little help from Dr Copper Discover this fund | European Capital Partners
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With a little help from Dr Copper

Nov 22, 2022

The importance of copper in the energy transition cannot be stressed enough: according to the International Energy Agency, an offshore wind turbine requires about 8 metric tons of copper per megawatt, 4 times more than a gas gas-fired power plant. The average car, fuelled by gasoline or diesel, uses about 25 kilograms of copper; an electric car needs more than double that amount. This is probably the reason why copper is holding up extremely well in the current economic slowdown compared to other industrial metals. In our European value strategy, we are invested in the miner and smelter Boliden whose main resources are zinc and copper and 45% of its copper smelter capacity are generated from its own mines. A forward PER of 7.9 and a dividend yield of 6.9% for a lowly leveraged business estimated to generate a ROE of 23% this year looks attractive to us, especially with copper as one of the main drivers.

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