Drill, baby, drill: 6 stocks to play oil, uranium and other key commodities

Note: This interview was taped Tuesday 10 December 2024.

Tribeca's Todd Warren operates in a fascinating space: global natural resources, a sector the market is intensely scrutinising for opportunities and insights, particularly under the new Trump Administration and its 'drill, baby, drill' energy agenda.

As Investment Manager of ASX-listed Tribeca Global Natural Resources (ASX: TGF), Warren brings a unique perspective on the ebb and flow of commodities and the key players best positioned to capitalise on them.

“We can invest anywhere in the world in the commodities landscape - whether it's mining, energy, or soft commodities - and build a diversified portfolio based on fundamentals,” he says.

We were thrilled to feature Warren in Livewire's 2025 Outlook Series, where he shared his insights on a key part of the market for Australian investors.

While 2024 was undoubtedly a challenging or sideways year for many commodities, Warren believes it has created a prime setup for investors prepared to participate in a potential cyclical upswing. One standout opportunity he highlights is uranium.

“We’re huge bulls on uranium. The nuclear energy thematic is gaining momentum. Governments and companies worldwide are recognising nuclear as a crucial, carbon-friendly base load power source ... and we’ve got a dramatic deficit in the supply-demand balance,” Warren explains.

However, he cautions against diving into uranium stocks blindly. The viability of a company depends on several factors, including production levels, cost of production, and, critically, where the supply comes from.

As the chart below illustrates, a significant portion of supply originates from Russia. However, the West is actively seeking to reduce reliance on Russian sources and secure fuel for nuclear reactors from more stable, friendly nations. In this context, Warren highlights Boss Energy (ASX: BOE), an ASX producer he says is well-positioned to benefit.

#1 growth stock set to explode - Boss Energy (ASX: BOE)

“Boss will see production grow from about 800,000 pounds this year, double that next year, and add another 800,000 pounds by FY27. That’s a tripling of production, which we believe will drive significant earnings growth.”

#2: Sectors set for a breakout and the stock to play them

Sectors: Copper & aluminium
Stocks: Capstone Copper (ASX: CSC) and Alcoa (ASX: AAI)

Warren explains that while headlines about China's sluggish growth are weighing on prices, the underlying demand fundamentals remain strong - driven by the global energy transition and China's substantial investments in its power grid - while supply challenges persist:

"We need a huge amount more of copper and aluminium to fuel or power the energy transition at at time when supply isn't coming."

#3 Contrarian calls set to surge in 2025 

Contrarian calls: Iron ore & oil
Stocks: Champion Iron (ASX: CIA) and Karoon Energy (ASX: KAR)

Watch the full video for a deeper thesis on the five commodities Tribeca likes for 2025, five stocks to play them, and the one to avoid.