Hunting for Value in Mining Stocks Amid Soaring Metals Prices | Freddy Brick | Muddy Waters Capital
Episode publishedPodcast: Monetary Matters with Jack Far...Monetary Matters with Jack Farley
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We actually don't have a huge view on metal prices, which everyone probably thinks is just insane given that we run a metals and mining fund. 2% down day on the S and P, like, you know, a lot of Bloomberg go in yellow pretty early, and people are moving away from the screens. That's a pretty mild day in junior mining. Like, you you regularly get a plus 5% move in any of the underlying commodities or the indices. The gratification is very rarely instant in the sector.
Hello, everyone. Welcome to Other People's Money. I am Max Wheatley, and I am joined today by Freddie Brick, partner at Muddy Waters Capital. Freddie, thank you so much for joining me today.
Max, really great to be here. Thank you for having me on.
It is a pleasure. I mean, normally, when I am talking to the people at Muddy Waters, I'm talking to your partner, Carson, and we're talking about short selling. That's not what we're gonna be doing today because you at Muddy Waters have been expanding into new markets, new strategies. And one in particular resources is extremely timely. Obviously, gold was on an incredible run last year. It has been extremely choppy through 2026. And whenever that happens, the miners tend to give you that type of all plus some. I know that's probably what excited you about the sector was all of that juicy vol
I'm gonna massively disappoint here. Despite being involved in the sector and having been involved in the sector now for about eight or nine years in kind of various iterations, we actually don't have a huge view on metal prices, which everyone probably thinks is just insane given that we run a metals and mining fund. We do have kind of a macro view, but it's it's really we're quite focused on the junior mining sector, and so our macro view really coalesced around why a lot of assets in the junior mining sector were highly distressed and basically left dead. And so in terms of, you know, the w
But I gotta think you have to have some view that metals prices are headed higher over time. Maybe we could zoom out and say, about the long term macro view that you have for metals? And I think we should probably separate them from the industrial metals that I I think a lot of people have heard some of the bold thesis there and then also the precious metals where, you know, the bull thesis seems ever present.
Yep. So alright. If we take base, we do a fair bit in copper. The copper bull thesis has been around since the last copper bull market. You know, the reasons change. It was gonna be EVs and how much copper went into every EV. I think it was, you know, six times the amount of copper for every EV as every ICE vehicle. Now it's AI. Before that, it was something else. I do believe the copper bull market, the the copper bull thesis makes sense. It's just I don't know at what point it actually is going to happen. I do believe that it is harder to find bulk assets in copper, and I think if you look a
So you're not looking at the mines that are actively producing, you're looking more at like assets in the ground, or maybe even unproven assets.
Correct. That's typically where we spend our time, and where we think there's really the, you know, greatest amount of, like, information asymmetry and alpha in the space.
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