In this episode of The Compass, Derek Macpherson and Sam Pelaez of Olive Resource Capital discuss the company's record Q1 financials, highlighting a profit of over $1.1 million and a portfolio increase of 17%. They attribute this success to concentrated bets on high-conviction investments and restructuring the portfolio. Looking ahead, they explore potential copper investments, noting the long-term supply-demand dynamics and the recent issues at Ivanhoe's Kamoa-Kakula mine. They discuss their portfolio construction strategy, differentiating between liquid names for short-term trades and fundamental positions in smaller cap names for long-term growth, mentioning Arizona Sonoran and Sterling Metals as examples of copper exposure in the junior market. They also delve into the challenges of finding suitable mid-cap copper companies and the criteria they use for screening potential investments, including fundamental strength, management quality, and growth potential.
