Raw Materials could drift in August; Downstream to outperform
Summer is a seasonally weak period for mining stocks and, with the lithium restocking event now having petered out, there’s likely to be precious-little support for raw materials equities in the face of worsening macro economic soundbites. In that sort of environment, we expect large caps to outperform over small caps and see Downstream as a likely outperformer over Upstream. The sole exception to that is likely to be in the exploration segment where we believe that continued newsflow should support some of these smaller cap stocks. We caution that, given ongoing wildfires in Quebec and their disruption of helicopter-borne...