This is where you’ll find investment opportunities in Latin America

Stop.

What if I told you there’s a region with:

• abundant opportunities across metals, energy and tech,
• highly undervalued, yet
• poised for growth?

Well, there is.

Let’s talk about investing in Latin America, shall we?

Here’s what I’ll cover today:

Investment
Agribusiness
Metals & mining
Technology & innovation
Energy & related infrastructure

Diversification & cost efficiencies

Let’s go!

Its scale

1/6 of the earth, with most minerals and metals in the periodic table.

Over 658 million people call Latam home, in 20 countries and 6 territories.

75% of the population lives in the 6 largest economies:

Mexico, Brazil, Chile, Peru, Colombia, and Argentina

FDI is a big deal

From all cross-border capital inflows 2010-2021, FDI (foreign direct investment) was the highest.

In 2021 the region received about 8% or $134 billion.

Foreign capital is needed as local markets are not yet fully developed.

📊 @synergyrescap

Mineral riches

Latam’s mined revenue was over $150 billion in 2012, and by 2020 had risen to $294 billion.

From mature producers, to up-and-coming developers and explorers, every stage in the mining cycle is present, and foreign companies are active, especially Canadian (450+)

From all metals and minerals, the most exciting opportunities I see are in:

• Copper
• Lithium
• Silver

The continent was blessed by the pacific rim (‘ring of fire’) as well as the ‘lithium triangle’ and also Argentina (from the Latin argentum, silver)

Digging in:

Over 51% of the world’s copper was produced in the region.

The king of all metals loves Latam.

Here’s a quick overview of copper porphyries (the world’s major source of copper and molybdenum and a significant source of gold).

Copper is crucial for decarbonisation, yet we've been underinvesting for over a decade.

To be copper-ready we must step up.

Here's the skinny on porphyry deposits to help you take advantage of this lifetime opportunity.

— Paola Rojas 🐝 (@paola_rojas) September 19, 2022

The lithium triangle hosts over 53% of the world’s resources.

Copper and lithium are key for the energy transition.

Here’s a summary of what you need to know before investing in lithium stocks.

Lithium is the core of the batteries we use daily.

All critical metals will continue expanding as the energy transition speeds up.

Here's your “Lithium Investing 101” to help you venture into this growing theme.

— Paola Rojas 🐝 (@paola_rojas) October 28, 2022

Mexico is the world’s top silver producer.

Silver is not just a store of value.

Here are 5 reasons to invest in silver stocks.

Silver gets a cold shoulder from many in the investment community.

But the precious metal is shifting.

Here are 5 reasons to add silver stocks to your portfolio, today and for the long term:

— Paola Rojas 🐝 (@paola_rojas) October 8, 2022

Renewable infancy

Hydropower is the largest renewable source, with Brazil in the lead -top 10 by new installed capacity with 175MW-.

But coal, oil & gas still generate the bulk of energy, especially Mexico, Argentina and Chile.

An opportunity to participate in the transition.

Agribusiness is crucial

It’s both the backbone and an important part of cultural identity.

However, most production is highly fragmented, as it comes from smallholder farmers.

Agtech is small but growing – an opportunity for automation and efficiencies

Diversification & cost efficiencies

Although the continent is not a unified entity:

• mostly 2 languages
• undervalued currencies
• strong institutions & systems
• culturally compatible w/ major western economies

Sound diversification alternative to Asia and Africa

Tech and innovation

The startup scene is heating up, especially in fintech and e-commerce.

So much that this year more capital was deployed than in the previous decade.

Top VCs are deploying capital such as @sequoia

More than 50 unicorns exist today!

That’s a wrap!

We see opportunities in Latin America growing for decades to come.

I would like to see allocations in most portfolios, within sectors that correlate with risk tolerance, of course, as challenges exist that must be considered.

That’s it for today.

Every week we share our views on metals and mining stocks on socials and this blog. Subscribe here for highlights or join our distribution list for investment opportunities.

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