THE BIG 5

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THE BIG

5

A Potential Commodities Supercycle?

Cyclical, secular and structural drivers are set to transform the commodities market. These 5 key trends are converging to impact mining industry dynamics and accelerate material scarcity, a reality which points to a developing paradigm shift in the value and opportunity in metals and mineral investment.

Keep   scrolling
1. Decarbonization Decarbonization 1
Green Energy Transition
  • Less fuel inputs = more mineral inputs
  • More renewable solar/wind/hydro plants
  • More zero-emission vehicles (ZEVs)
  • More electric grid expansion and storage
read more Making the transition to EVs a Reality
25xmore
Electric vehicle demand by 20401
3LiLithium
42xmore
28NiNickel
19xmore
29CuCooper
3xmore
Green Energy Minerals
Production demand by 20402
2. Consumption Consumption 2
6.5Billion
People now residing in middle-income countries3
900Global
Cities
Experiencing combined population growth of 600 million over the next two decades4
Urbanization
Driving demand for roads, buildings, water plants, and material goods
watch video Broadening of the Middle Income Base
3. Underinvestment Underinvestment 3
Insufficient Mining Capital
A sustained period of mining underinvestment over the last decade
read more Sagging Capital Investment
Supply/DemandImbalance
Investment deficits depress mining activity, magnify critical mineral demand trends
$115Billion
Annual mining capex needed over the next 15 years to support demand projects5
4. Geopolitics Geopolitics 4
Deglobalization
Post COVID-19 globalization rollbacks are fundamentally restructuring economies
Infrastructure Shifts
Increasing onshoring to reduce supply chain dependence
Сompetition
Intensifying geopolitical rivalries impact trade flows driving increased competition for scarce resources
5. Sustainability Sustainability 5
Sustainable Development Goals Alignment
Responsible mining aligns with and enables the UN Sustainable Development Goals
Action & Focus
Responsible actors in the mining industry are working to minimize the impact of climate change, uphold human rights, promote Diversity, Equity, & Inclusion, and protect biodiversity
read more ESG Stewardship
Community
Responsible mining can be transformative by providing socioeconomic benefits to local Indigenous peoples, governments, and ultimately our global community

THE BIG 5

read offline Download PDF
Return to Insights
Sources of Information:
  1. Bloomberg New Energy Finance, The Role of Critical Minerals in Clean Energy Transitions -IEA, World Energy Outlook 2020 -IEA
  2. Global Supply Chains of EV Batteries https://www.iea.org/reports/global-supply-chains-of-ev-batteries.
  3. “Middle Income” refers to Economic Development Level 2 & 3 countries, as defined by the World Bank and Brookings https://www.brookings.edu/blog/future-development/2021/05/20/a-long-term-view-of-covid-19s-impact-on-the-rise-of-the-global-consumer-class/.
  4. Oxford Economics https://www.oxfordeconomics.com/resource/global-cities-urbanisation-continues-led-by-rapid-growth-in-african-cities/.
  5. Source: The Energy Transition Starts and Ends with Metals, Wood Mackenzie, 2022.

This material is provided for educational purposes only and should not be construed as research. The information presented is not a complete analysis of the commodities landscape. The opinions expressed may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources deemed by Resource Capital Funds and/or its affiliates (together, “RCF”) to be reliable. No representation is made that this information is accurate or complete. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader. None of the information constitutes a recommendation by RCF, or an offer to sell, or a solicitation of any offer to buy or sell any securities, product or service. The information is not intended to provide investment advice. RCF does not guarantee the suitability or potential value of any particular investment. The information contained herein may not be relied upon by you in evaluating the merits of any investment. Investing involves risk, including possible loss of principal.

THE BIG

5

A Potential Commodities Supercycle?

Cyclical, secular and structural drivers are set to transform the commodities market. These 5 key trends are converging to impact mining industry dynamics and accelerate material scarcity, a reality which points to a developing paradigm shift in the value and opportunity in metals and mineral investment.

Keep   scrolling
1. Decarbonization Decarbonization 1
Green Energy Transition
  • Less fuel inputs = more mineral inputs
  • More renewable solar/wind/hydro plants
  • More zero-emission vehicles (ZEVs)
  • More electric grid expansion and storage
read more Making the transition to EVs a Reality
25xmore
Electric vehicle demand by 20401
3LiLithium
42xmore
28NiNickel
19xmore
29CuCooper
3xmore
Green Energy Minerals
Production demand by 20402
2. Consumption Consumption 2
6.5Billion
People now residing in middle-income countries3
900Global
Cities
Experiencing combined population growth of 600 million over the next two decades4
Urbanization
Driving demand for roads, buildings, water plants, and material goods
watch video Broadening of the Middle Income Base
3. Underinvestment Underinvestment 3
Insufficient
Mining Capital
Insufficient
Mining Capital
A sustained period of mining underinvestment over the last decade
A sustained period of mining underinvestment over the last decade
read more Sagging Capital Investment
Supply/DemandImbalance
Investment deficits depress mining activity, magnify critical mineral demand trends
$115Billion
Annual mining capex needed over the next 15 years to support demand projects5
4. Geopolitics Geopolitics 4
Deglobalization
Post COVID-19 globalization rollbacks are fundamentally restructuring economies
Infrastructure Shifts
Increasing onshoring to reduce supply chain dependence
Сompetition
Intensifying geopolitical rivalries impact trade flows driving increased competition for scarce resources
5. Sustainability Sustainability 5
Sustainable Development Goals Alignment
Sustainable Development Goals Alignment
Responsible mining aligns with and enables the UN Sustainable Development Goals
Responsible mining aligns with and enables the UN Sustainable Development Goals
Action & Focus
Responsible actors in the mining industry are working to minimize the impact of climate change, uphold human rights, promote Diversity, Equity, & Inclusion, and protect biodiversity
read more ESG Stewardship
Community
Responsible mining can be transformative by providing socioeconomic benefits to local Indigenous peoples, governments, and ultimately our global community

THE BIG 5

read offline Download PDF
Return to Insights
Sources of Information:
  1. Bloomberg New Energy Finance, The Role of Critical Minerals in Clean Energy Transitions -IEA, World Energy Outlook 2020 -IEA
  2. Global Supply Chains of EV Batteries https://www.iea.org/reports/global-supply-chains-of-ev-batteries.
  3. "Middle Income" refers to Economic Development Level 2 & 3 countries, as defined by the World Bank and Brookings https://www.brookings.edu/blog/future-development/2021/05/20/a-long-term-view-of-covid-19s-impact-on-the-rise-of-the-global-consumer-class/.
  4. Oxford Economics https://www.oxfordeconomics.com/resource/global-cities-urbanisation-continues-led-by-rapid-growth-in-african-cities/.
  5. Source: The Energy Transition Starts and Ends with Metals, Wood Mackenzie, 2022.

This material is provided for educational purposes only and should not be construed as research. The information presented is not a complete analysis of the commodities landscape. The opinions expressed may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources deemed by Resource Capital Funds and/or its affiliates (together, “RCF”) to be reliable. No representation is made that this information is accurate or complete. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader. None of the information constitutes a recommendation by RCF, or an offer to sell, or a solicitation of any offer to buy or sell any securities, product or service. The information is not intended to provide investment advice. RCF does not guarantee the suitability or potential value of any particular investment. The information contained herein may not be relied upon by you in evaluating the merits of any investment. Investing involves risk, including possible loss of principal.