Sprott Copper Miners ESG Screened UCITS ETF - Accumulating

Issuer: HANetf

Asset Class: Equity

TER: 59bps

Trading Currency: GBX

Pays Income: False

Listing Date: 07 Dec 2023

Ticker: COPP

ISIN: IE000IQQEL77

This investment provides targeted exposure to the copper mining industry, a sector poised to benefit from powerful, long-term structural trends. Copper is an indispensable metal for the global economy, often referred to as 'Dr. Copper' for its ability to predict economic health. More importantly, it is a critical component in the transition towards a green economy. Electrification, renewable energy infrastructure such as wind and solar power, and the proliferation of electric vehicles are all highly copper-intensive. This surge in 'green demand' is layered on top of traditional demand from construction and manufacturing, creating a robust outlook for the metal's consumption over the coming decades.

While demand is set for significant growth, the supply side faces considerable constraints. The world's major copper mines are aging, leading to declining ore grades, which makes extraction more difficult and costly. Furthermore, the pipeline for new large-scale mines is thin due to years of underinvestment in exploration and increasingly stringent environmental regulations and social licensing hurdles, which can delay new projects for over a decade. This looming supply-demand imbalance points towards a potential structural deficit in the copper market, which could support higher prices over the long term. Investing in the equities of copper miners offers a leveraged play on the price of the underlying commodity. As copper prices rise, the profitability and cash flows of these companies can increase at an even faster rate.

This fund offers a pure-play approach to this theme by investing in a portfolio of global companies that are directly involved in copper mining activities. This includes large, established producers as well as smaller exploration and development companies, providing diversified exposure across the industry's value chain. By holding a basket of these firms, investors can gain efficient access to the growth potential of the copper sector, driven by the essential role it plays in global decarbonization and economic expansion, without having to select individual mining stocks.