Top Picks 2021: Ivanhoe Mines (IVN)

01/14/2021 5:00 am EST

Focus: COMMODITIES

Omar Ayales

Editor, Gold Charts R Us

Ivanhoe Mines (Toronto: IVN) (OTC: IVPAF) is a Canadian company with solid management and developing operations in Central Africa, explains resources sector specialist Omar Ayales, editor of Gold Charts R Us.

The company's Kamoa-Kakula Project is nearly complete and scheduled to commence operations during the third quarter of 2021. Once it becomes fully operational, it will be one of the largest copper mines in the world.

2020 will go down in history for many things, most notably the panic Covid-19 unleashed, pushing governments to lockdown economies and keep people at home to protect against the unknown.

Borders were shut and global commerce came to a grinding halt. Entire industries were at the brink of disappearing, many businesses didn’t make it. The ones that did had to adapt to new realities and safety requirements.

For many of those, it wasn’t without help from government. The Federal Reserve and the U.S. government (and most parts of the world) have been supporting business, by keeping easy policies that are giving investors’ confidence. It’s setting the stage for a stronger recovery (no doubt at the expense of the U.S. dollar).

Recent development regarding the approval and distribution of vaccines with high efficiency could help people build up their confidence and overcome their fear of the virus.

Speculation of the upside potential is pushing the major stock averages up; the Dow Industrial and the Transportation averages recently triggered a bullish Dow Theory re-confirmation. Most other indices are at or near all-time highs! Confidence in the resilience of business in the U.S. is high.

Moreover, there’s an expectation that total demand for goods and services will unavoidably return to pre-pandemic levels — and as the economic recovery picks up steam, so will demand for copper (and resources).

Copper already rose to new multi-year highs recently. The breakout is very bullish confirming a secular bull market. A rise to the all-time highs near $4.50 is now likely.

Consider increasing exposure to copper thru Ivanhoe Mines. I also have exposure thru EMX Royalty (EMX), BHP Group (BHP) and others with great upside potential.

Meanwhile, my Top Pick recommendation for last year was Silvercorp Metals (SVM), a company that reached a high during the August peak in the gold universe allowing 50% returns. Since profit taking and a pull back, we’ve bought back the position and remain bullish. SVM was up 20% in 2020.

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