Hot Picks: Potash, platinum and copper stand out for long-term value

Three long-life mining assets anchor a set of commodity ideas built around tightening supply conditions and improving demand signals. The opportunities span potash, platinum and copper, each showing potential pricing upside over the coming years.

BNN Bloomberg spoke with Taylor McKenna, analyst at Kopernik Global Investors, who outlined his case for K+S, Valterra Platinum Holdings and Glencore as compelling long-term exposures across the commodities landscape.

Key Takeaways

• Potash, platinum and copper are highlighted as attractive long-term opportunities supported by tightening supply and strong asset bases.
• K+S benefits from high-quality Canadian and German mines and significant pricing optionality as potash trades below incentive levels.
• Platinum remains historically undervalued relative to gold, with rising jewellery and investment demand supporting Valterra’s long-life South African assets.
• Glencore’s underappreciated copper portfolio and strong coal assets position it for growth as global demand for metals increases.
• Across all three companies, long mine lives, solid balance sheets and strategic positioning underpin the bullish outlook for commodity prices.

Read the full transcript below:

ANDREW: On Hot Picks today, we are looking at commodities. Our guest has German potash producer K+S as his top pick. Let’s get more from Taylor McKenna, analyst at Kopernik Global Investors. Thanks very much indeed for joining us, Taylor.

TAYLOR: Thanks for having me today.

ANDREW: Remind us what K+S is all about, because they have operations in Canada, right?

TAYLOR: They have operations in Canada and in Germany. They’re a potash producer. And the reason why we like it is, if we look at potash right now, it’s trading well below the incentive price. Around US$330 a tonne to increase the supply to build new mines, you’re going to need a price well above US$500 a tonne. And as long-term investors, if we look out five years or so, you’ll be in a shortfall. So there will be new mines that need to be built. Prices will have to rise. And in that environment, K+S has a very good mine in Canada, and then some middle- to higher-cost mines in Germany. But with those middle- to higher-cost mines, they have incredible optionality to these likely higher prices in the future. They also have a very strong balance sheet, so they can weather this storm that they’re in right now. So we see a lot of upside in the future.

ANDREW: Actually, maybe we could put up a quick one-year chart for Nutrien. You probably saw that story that U.S. President Donald Trump mused about putting tariffs on Canadian fertilizers, but he’s been going to and fro. He issued an executive order just a while ago to cut tariffs on imports of Canadian potash, and so he’s been cutting them. Now he’s apparently talking about increasing them again. I see the Nutrien investors are taking the news in stride, right?

TAYLOR: Right. We also like Nutrien a lot too. They have incredible assets in Canada, very low on the cost curve, and very, very well managed overall throughout this cycle. I think it would be pretty hard to put tariffs on fertilizer from Canada because U.S. farmers rely on this so much.

ANDREW: Right. We’re tight for time, and I’m sorry about that. Valterra Platinum Holdings — what draws your attention here, Taylor?

TAYLOR: Sure. I was listening to your previous guest, and he was making a lot of good points on the fundamentals continuing for gold into the future. We agree with that. We still like gold, but we actually see a lot more upside in platinum for some of the same reasons. Historically, it’s traded at a one-to-one ratio to gold. Over the long term, it’s at a 60 per cent discount to gold right now. You’re seeing jewellery demand and investment demand really pick up throughout the summer and into this fall. So there’s a lot to like there when you compare it to gold, at least historically. Importantly, on the supply side — it’s always important to look at the supply side when you’re investing in these metals — the supply side is pretty dire at current prices. So you’ll need much higher prices for reinvestment to occur in the core market of production, which is South Africa, likely north of US$2,000 an ounce. And we’re here around US$1,500. Getting back to the company, Valterra Platinum has incredible assets — some of the best assets in the world. They’re in South Africa. They’re the largest platinum producer in the world. They have a very good management team and a strong balance sheet. So they’re doing okay at current prices, but if prices rise, that would foster new investment, which is likely to happen. They have incredible optionality, like K+S.

ANDREW: And then finally, Glencore — a giant name in metals.

TAYLOR: Sure. Glencore is — we view it as a sum-of-the-parts nature. They have an underappreciated copper portfolio in our mind. They bought some great assets and brownfield assets over the years. And as everyone wants more copper, they’re going to be increasing production over the next five or 10 years, particularly in Argentina. They also have one of the best coal portfolios in the world. Some of those assets in Canada that they bought from Teck at a very, very good price. We’re going to need coal for a while longer, especially these met coal assets in Canada. And then, of course, they have the trading business, which gives them solid cash flows and allows them to buy back stock at depressed value. So we see from a sum-of-the-parts value a very good opportunity in Glencore right now.

ANDREW: And of course, we’re almost out of time, but major shakeup in the metal market with what looks like Anglo American is going to get Teck Resources. Of course, the votes still have to be counted.

TAYLOR: Yes, it does seem that way, and it looks like the company will be headquartered in Canada. There are some very good assets within Teck, but Glencore surely got some great coal assets very cheaply.

ANDREW: Thank you very much, Taylor. Really appreciate it.

TAYLOR: Thank you so much.

ANDREW: Taylor McKenna, analyst at Kopernik Global Investors.

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This BNN Bloomberg summary and transcript of the Dec. 9, 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.