Platinum’s discount to gold and constrained supply could set the stage for higher prices, while iron ore and copper projects present further opportunities for investors.
BNN Bloomberg spoke with Taylor McKenna, analyst at Kopernik Global Investors, who highlighted platinum, iron ore and Canadian copper projects as his latest hot picks in the commodity space.
Key Takeaways
- Platinum trades at more than 50 per cent below gold, with long-term supply constraints expected.
- Valterra Platinum has one of the world’s largest platinum operations in South Africa.
- Vale is a top low-cost producer of high-grade iron ore from Brazil, supplying China.
- Western Copper and Gold controls a major undeveloped copper-gold deposit in the Yukon, with backing from Rio Tinto and Mitsubishi.
- Seabridge Gold’s giant KSM project offers long-term potential, though development is years away.
Read the full transcript below:
ANDREW: Hot Picks today. We’re talking about metal stocks, including Valterra Platinum, said to have the biggest platinum reserve in the world. That is our guest’s first top pick. We’re joined by Taylor McKenna, analyst at Kopernik Global Investors. Taylor, thanks very much for joining us. Tell us about Valterra. Where is all this platinum?
TAYLOR: Thanks for having me. Valterra is one of the largest producing platinum companies in the world. Their mines are in South Africa. Why we like them—let’s talk about platinum first. While it had a run this summer, it’s still at a historical discount to gold. It has many of the same characteristics as gold, but it’s actually rarer. It’s been used as money in the past, and jewellery remains a big part of demand going forward.
So we like platinum. Valterra Platinum, as you mentioned, has one of the largest developed operating mines in the world in South Africa. As the platinum price moves higher, hopefully toward the incentive price, Valterra will benefit.
The other key point is supply. At current prices, it’s not very economic for companies to reinvest. Looking out five or 10 years, we see as much as 10 or 15 per cent of supply coming out of the market if companies don’t invest. Higher prices are needed, and we think they’re coming.
ANDREW: Right. Interesting. It’s considered the rarest and most expensive of the precious metals. Fascinating. I didn’t know this—the name comes from the Spanish “platina,” meaning “little silver.” You’ve got other mining stocks for us, including Vale, which is very different. A huge part of their business is iron ore.
TAYLOR: That’s right. Vale is one of the largest iron ore producers, and one of the lowest cost. They arguably have the best grade in the industry, out of Brazil. While there may be issues for producers at the higher end of the cost curve, Vale is sheltered. They’re performing well at current prices, and even if prices fall, they’ll be fine. Their production is strong, and they’ll also benefit if prices rise.
Of course, they’re in Brazil, and much of their iron ore goes to China. Being in an emerging market, we need a big margin of safety before investing, but we’re being offered that today.
ANDREW: You also have ideas in companies working on potentially giant gold mines. Let’s start with Western Copper and Gold.
TAYLOR: Sure. We’ve spoken in the past, and while we still like Seabridge Gold—which has a large gold-copper deposit in Canada—it’s done really well recently. We now see more opportunity elsewhere.
Western Copper and Gold has one of the largest undeveloped copper-gold deposits in Canada, in the Yukon. They’re in the permitting stages now, with an excellent management team. What’s really helping the project is that, while it’s primarily a copper project, the higher gold price makes it more economic. We expect permitting to progress well, and they’ve got strong partners in Rio Tinto and Mitsubishi. We like Western Copper and Gold at these prices.
ANDREW: Interesting. Maybe we can put up Seabridge. They have another potentially giant mine. I guess it’s more speculative, because it’ll be years before it gets built.
TAYLOR: Yes, it’ll be years. But big gold companies are depleting reserves and haven’t acquired assets like Seabridge’s KSM project recently. That could change. Eventually, we think a project with nearly 100 years of mine life will get built. But we’re not expecting it near term.
ANDREW: Just looping back to Western Copper and Gold—are they a bit closer to moving ahead with their Casino project?
TAYLOR: It’s hard to say. They’re not permitted yet. Seabridge’s KSM is actually further along. Western is smaller, so the initial capex is lower, but it’s tough to say which will move first.
ANDREW: Thanks very much. And circling back to platinum, I forgot to mention—it’s also widely used in cancer treatment. About half of cancer drugs utilize platinum. Another angle. Taylor, thank you very much for joining us.
TAYLOR: Thank you for having me.
ANDREW: Taylor McKenna, analyst at Kopernik Global Investors.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| VAL JSE | N | N | Y |
| VALE NYSE | N | N | Y |
| WRN NYSE | N | N | Y |
| SA NYSE | N | N | Y |
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This BNN Bloomberg summary and transcript of the Oct. 1, 2025 interview with Taylor McKenna are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
