Gavin O'Luanaigh @GEMOLFund: "Dear Fellow Investors, Further to..."

United Kingdom

Dear Fellow Investors, Further to our monthly update just wanted to highlight some of our stocks we have, why we have them and a little about the industry they are in. Why Mining Giants Are Poised for a Major Upswing As global demand for key minerals accelerates and high-grade deposits continue to shrink, the mining sector is entering a new long-term bull phase. The world is burning through resources faster than it can replace them—and this structural scarcity is setting up the major miners for significant upside. We can see this with Trump's play for these minerals and resources in Ukraine, Russia, Venezuela and even the Arctic. Countries are looking down the tracks and seeing that they need more resources if they want to thrive. ⛏️ Dwindling Resources, Rising Pressure Ore grades for copper, nickel, iron ore and other essential metals have been falling for years. New discoveries are rare, environmental approvals take longer, and extraction costs keep rising. Meanwhile, consumer demand keeps exploding—AI data centres, EVs, solar farms, smartphones, batteries, and global urbanisation are all pushing mineral consumption to record highs. We’re now in a world where supply cannot keep pace with demand. We have seen this with the change in our lifestyle with the number of gadgets we own growing exponentially each year. 📈 Rampant Consumerism = Structural Supercycle The global shift toward electrification and renewable energy is only just beginning. Copper demand is projected to surge. Lithium remains the backbone of battery storage. Iron ore is still essential for infrastructure and industrial growth in emerging markets. This isn’t a short-term cycle—it’s a multi-decade trend driven by technology, energy transition, and population growth. 🏆 Why the Big Four Miners Look Set to Outperform 🔵 Rio Tinto (RIO) With world-class iron ore assets and growing copper exposure, Rio Tinto is extremely well-positioned for the electrification boom. Its iron ore operations are among the most profitable globally, and its expanding copper portfolio gives it long-term strategic value. 🟢 BHP (BHP) The world’s largest miner continues to focus on “future-facing commodities”. Copper, nickel, potash and iron ore form the core of its growth strategy. As supply tightens worldwide, BHP’s scale and balance sheet give it a major competitive advantage. ⚫ Glencore (GLEN) A unique mix of mining and global trading power, Glencore thrives in volatile, supply-constrained markets. With dominant positions in cobalt, nickel, zinc and copper, it sits right at the heart of the EV and battery supply chain. 🔴 Vale (VALE) One of the world’s most important iron ore producers, Vale benefits directly from continued global industrialisation and infrastructure spending. Its high-grade iron ore also offers cleaner, more efficient steel production—an advantage in a world focused on ESG performance. 💡 The Investment View Scarcity drives value. And in the decade ahead, metals won’t just be valuable—they’ll be essential. What do we think is behind our $AAPL (Apple) phone powering our $TSLA (Tesla Motors, Inc.) or allowing us to search on $GOOG (Alphabet) Mining companies that control strategic reserves are moving into a period of increasing pricing power. With long-term demand locked in and new supply lagging years behind, the giants—Rio Tinto, BHP, Glencore and Vale—are strongly positioned for sustained momentum. I believe the mining sector remains one of the most compelling long-term plays in today’s market. We have all four mining stocks under our portfolio and with some great dividends for theses companies also it adds to the attractiveness of the stock. Take Care, Gavin $RIO (Rio Tinto PLC ADR) $VALE (Vale SA-ADR) $BHP.L (BHP Group Ltd ) $GLEN.L (Glencore Plc)