BNN - Thursday, May 23, 2024 - 03:00 p.m. (ET) - Segment #2

them weaponize. We are seeing them weaponize that to make their products cheaper to not allow western companies to compete on a lot of the renewables and the batteries and this is what we see a tremendous you know trade war almost lobbied by the united states last week with their enormous tariffs on some of these products. And so you have to ask yourself, though, the chinese are subsidizing and manipulating their sales of these products on our side we have policies that mandate them that regulate that we must grow into them. Actually changing from an entry system and pretty independent for fossil fuels and nuclear and pushing off to one that depends on the chinese. And in the long-term it won't be -- we can say long-term it's better for the climate. I don't think it is because it obviously leads to some geopolitical tight situations. And so I do think the ones that we are [indiscernible] in natural gas, carbon capture, nuclear energy we pretty much are self-sufficient domestically that we should really be focusing on those areas, hydrogen in the medium term rather than becoming dependent on systems that depend on chinese. >> Andrew: that's interesting. You would rather than bet too heavily on a lithium storage based future you think we should emphasize things like nat. Gas with carbon capture and nuclear? >> The ones that we are independent in yeah, and it's not you know lithium people say you can do a sodium battery. They are outcompeting I have to say because they are manipulating markets on solar panels on windmills on lithium ion batteries on electric vehicles. And now we see the biden administration asking this bipartisan consensus on that. When will canada act. Europe is starting to act. We can see that 20 years in the future it would do none of us any good if our energy and transportation systems depend on cheap chinese goods and so what kind of offence can we start playing now. >> Andrew: that's fascinating. I am just trying to think, yeah, it's interesting. We were complacent, though, weren't we, in the west. We like china get this lead in processing critical minerals, solar. We were too smart to bother about boring things like manufacturing. >> I absolutely agree. So we have turned it into climate policy and climate gospel that we don't do dirty things at home but it's not climate policy to offshore your dirty emissions generated manufacturing facilities to other countries. And so we are just seeing china again increasing its emissions together dirty job that we refuse to do and clawing back climate policy. I do think for canada things of our economic political future we need to focus on being the best at the mining at the manufacturing at the processing here in the cleanliest way possible. Not phasing it out here just to offshore it to china or somewhere else that is not only environmentally but also politically less ethical. >> Andrew: it's interesting. You have in the past expressed support for nuclear power. Are you happy that governments are doing enough? >> You know that is one bright spot and why it's a bright spot is I don't think it faces the culture war that fossil fuels face is that there is consensus majority of people now especially since 2022 do support nuclear and we do see that it's a good path. Why I would really like to play from an energy security perspective is because we do have [indiscernible] in the canada with the candu reactors we are self-sufficient. If we can get off russian enriched uranium, pretty much the west can be fully self-sufficient, independent in terms of energy security with nuclear. Whereas again with renewables that will be a big uphill climb to get that independent nuclear it's really within our grasp. >> Andrew: heather, thank you very much indeed. >> Thank you for having me. >> Andrew: that's heather exer in piro director of nat resources at the macdonald laurier institute.

>>> Up next we are going to talk about copper. Mines getting costlier to build an ( )( ) ( ) ( ) ( ) You never know what surprises life has in store. Invico Diversified Income Fund has provided investors with a decade of positive performance. Prepare for whatever's next with Canada's top alternative investment solutions provider, Invico. Reach for the future. ( ) You're just too good to be true Can't take my eyes Off of you ( ) Michelob Ultra. Mulvihills Canadian Bank Enhanced Yield etf gives investors premium exposure to Canada's big six banks with monthly distributions and a 9.3% yield. Cbnk is the highest yielding Canadian Bank etf. Mulvihill. At the cse, we're always invested in public markets, in business, in growth, in you. ( )( ) ( ) ( ) ( ) (Funky hip hop music) >> Andrew: shareholders in bhp are wondering if the world's biggest miner has moved a step closer to a take-over of anglo-american a deal worth well over $40 billion. Anglo rejected a third improved take-over approach, not a formal offer as far as I know. But it has agreed to talks and given its suitor an extra week to commit to a binding deal.

>>> Our guest says we haven't seen that much m & a activity so far in the mining sector this year but it should accelerate especially if the price of copper continues to go up. >>> We are joined by scott barra ceo of the prosper trading academy. Scott, it's always great to talk to you. Thanks very much. And actually before I get into mining m & a what about this short squeeze in new york in the copper market, is that the thing that pushed copper to record highs this week? >> I don't know if it was much of a short squeeze as it was a little bit of fomo, fear of missing out. You know, many other metals and other commodities pretty much all across the board rallying to highs that we haven't seen in a while or even all-time highs. So copper certainly was no different certainly caught up with the refs them so I am not so sure it was again as much of a short squeeze as it was you know what there is some catch-up to do here. >> Andrew: what about the m & a, the bhp, it looks like anglo-american has decided well, there might be something here for our investors and they are talking to bhp? >> Yeah, it's a little bit surprising that they were given an extra week if they don't get a deal done by next week then bhp is out of it for a minimum of six months. Those are U.K. regulations. They are not going to be able to come back to the table. But the fact that they are at the table it does seem to be getting a little bit closer and from my understanding, andrew, it's not so much the absolute price, the dollar amount of the entire transaction; it's more what is bhp going to be able to do with anglo's concerns around execution risk especially with what's going on in south africa. >> Andrew: south africa is kind of a joker in the pack here, isn't it, because it is a major shareholder in anglo. >> It is. >> Andrew: and presumably. >> Yes. >> Andrew: -- could block this deal? >> Oh, there is no question about it. So anglo's main concern is what's going to happen to its businesses in south africa. So it is going to be a tough one. It will come down to the wire. I think that it will happen if I had a you know give a guestimate on it it's probably 60/40 that it will happen but if it doesn't I think you will see another suitor coming into play. >> Andrew: it's just too attractive to have copper mines these days and it's such a daunting prospect to build the mines. >> Well, that's what it is, right. To build a mine right now it is so cost prohibitive. It is much easier, much -- I don't want to say less expensive but much easier for someone to go in and buy a company because of you know the massive amount of overhead that has accumulated now. You have declining ore grades, stricter environmental requirements and obviously rising labour costs. So that is really a barrier to entry for building mines here and I really think that if copper continues at these prices that they will that's going to force the hands of many companies out there. >> Andrew: we just were looking earlier at a calculation by reuters that copper inventories worldwide have gone to a three-year high. Now of course some of that is tied up in warehouses and nobody knows where all the of the world's copper is because humanity uses, what we produce more than 20 million tonnes a year around the world and slots recycled but is there a case to be made that copper markets are pretty adequately supplied right now? >> I think they are adequately supplied right now. The issue is what will happen in five years, seven years, ten years. The expectation is there is going to be such increased demand due to energy efficiency, EVs, the like. That's where the issue comes in. So if you are looking short run yeah, there is probably supply and demand is in check. Going out especially, especially if china makes any sort of recovery that could be the bogey in the whole thing here. But if china makes any sort of recovery that is really going to push demand. >> Andrew: yeah, that's interesting. Copper -- china arguably the main breaking factor on copper right now if it has one.

>>> Give us another -- anything fresh on uranium, scott. I am not even sure how closely you follow it but we did see cameco our big uranium-producing company its shares hit a new record high this week, cco. >> I think the theme for uranium is very similar to copper that we are going to see many more m & a deals coming up because you know there you are really in a supply and demand issue. Not so much with copper but uranium you are and right now the demand is far outweighing what we have in supplies. So do I think you will see a lot of m & a activity coming up the rest of this year. >> Andrew: scott, thank you very much indeed. Always great hearing from you. >> Thank you, andrew. >> Andrew: scott bauer ceo of the prosper trading academy. >>> Before we go let's have another look at the commodities market is what a quick look at natural gas the henry hub price in the united states. In general we had a super mild winter, so gas consumption was not that great but you can see prices have been rallying a little bit lately. We are still down from the peaks of late last year or late last fall but copper has rallied in the past year. Of course there is the prospect of a hot summer. Wrenching up heating demand in the united states and they need more electricity for that. Copper, there again, up 31% in the past year. A couple of stocks of interest in toronto today. Maybe we could have a quick look at advantage energy because I think I am right in saying that that one got to its highest point in at least a year today. It is a natural gas producer and it's interesting to see a company that is so linked to methane prices doing well. The company among other things focused on its montney resources. Look at that. Advantage energy up almost 50% in the past year. The company has been fairly aggressive investor in carbon capture technology and has been attracting investors' attention or some investors' attention for that activity.

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