Base metals more compelling than gold for City Natural Res

Neil Gregson is cutting exposure to gold mining stocks in the City Natural Resources High Yield trust as he sees better value in base metal miners.

The £127m trust has 35% exposure to gold equities, but Gregson expects to trim the position to 30% in the coming weeks. He says: “We think gold is good and there are plenty of exciting things happening in exploration. But when you look at the recent market sell-off in some base metals and bulk commodities companies, we think there is great long-term value in some stocks.” Gregson is more positive on uranium miners, due to China’s programme of nuclear reactor construction. He likes prospects for copper miners because of long-term supply issues, and he is looking to increase position...