Year-to-Date Commodity Heat Map
Precious Metals vs. Crypto
The strong tailwinds for cryptocurrencies (Bitcoin and Ethereum) have resulted in stagnant precious metal prices.
Gold and silver are facing an existential bear market at a time when their inherent values should be rising in the face of historic levels of central bank money printing.
The Bitcoin ETF (NYSE:BITO) has supercharged Bitcoin over the key $60K support level. Investor demand for the ETF was staggering, assets in BITO grew to $1.1 billion in 2 days – the fastest ETF to hit $1 Billion on record; the GLD ETF (gold bullion) was the previous record holder at 3 days.
Inflation Protection: Hunting for Value Among Copper Miners
Record central bank money printing and accommodative fiscal policy has driven commodity prices higher across the board. As a result of the higher cost of goods, consumer expectations for inflation have begun to surge.
The 1970s are the best proxy for the current inflationary episode, a period in which commodities were one of the best ways for investors to protect against inflation.
We believe there is meaningful value for commodity investors today; they are the cheapest they have ever been relative to US equities in the last 50 years.
Copper is one of the most critical commodities for the future green economy; it is a key input for electric vehicles, wind, solar and infrastructure.
This is a very attractive structural macro environment to invest in copper miners, particularly small & mid cap producers as they trade at a 50% discount relative to their large cap peers.
Sierra Metals (NYSE:SMTS, TSX:SMT), Nevada Copper (TSX:NCU) and Hudbay Minerals (TSX:HBM) trade at deep valuation discounts relative to their small & mid cap copper peers (which are already very cheap vs. large caps).
Psychedelics in Focus
Interview with Tim Moore, CEO of HAVN Life
Capital 10X had the pleasure of interviewing Tim Moore, CEO of HAVN Life Sciences (CSE:HAVN, OTC:HAVLF). Tim gave us an overview of their strategic positioning in the Psychedelic Market, and discussed the supply agreement within their distribution network. Tim also explained the regulatory challenges of working with psilocybin and the market potential of functional mushrooms.
H.C. Wainwright Initiates Coverage on Mindset Pharma
H.C. Wainwright has initiated research coverage on Mindset Pharma (CSE:MSET) with a Buy rating and a $5 target price. Analyst Patrick Trucchio believes MindSet’s lead candidate MSP-1014 could be a differentiated psilocybin based analog.
Wainwright believes Phase 2b trial data from COMPASS Pathways on COMP360, an oral form of psilocybin, could be a key near-term catalyst for Mindset, particularly as investors may then evaluate Mindset’s IP positioning and pipeline
Compass Pathways – New Phase II Trial of COMP360 for Post-Traumatic Stress Disorder
Compass Pathways (NYSE:CMPS) announced it will be conducting a phase II clinical trial to assess the safety and tolerability of COMP360 psilocybin therapy in post-traumatic stress disorder, PTSD.
The study expands COMPASS’s research pipeline in psilocybin therapy with COMP360, the company’s proprietary formulation of synthetic psilocybin which COMPASS is currently developing for treatment-resistant depression.
PharmaTher Enters into Research Collaboration with Revive Therapeutics
PharmaTher (CSE:PHRM) has entered into a research collaboration with Revive Therapeutics (CSE:RVV) to evaluation the delivery of psilocybin with PharmaTher’s proprietary microneedle patch technology for neuropsychiatric disorders.
PharmaTher’s microneedle patch technologies aims to become a next generation delivery system for psychedelics for various indications and healthcare environments. Revive believes that for psilocybin to be a next-generation therapeutic, different use and delivery forms will be required to achieve the intended target indications.
Sierra Metals is a market awareness client of Capital 10X.
