As the world transitions away from these planet-warming energy sources, demand is shifting towards a subset of minerals such as lithium, nickel, and cobalt. These energy transition minerals are essential components in many of today's clean energy technologies, from wind turbines to electric vehicles. These include copper, nickel, aluminium, cobalt, and lithium, as well as the 'rare earth' elements neodymium, praseodymium, and dysprosium. 

This creates a unique opportunity for new companies such as Cobre Ltd: (ASX: $CBE) & Fuse Minerals whose IPO listing will take place soon. Both companies are based in Australia and while COBRA Ltd is active in both Africa and Australia, Fuse Minerals is only active in Australia. However, both firms have very promising prospects as we will see below.

Top three reasons why you should invest in Cobre Ltd: (ASX: $CBE) & Fuse Minerals 

Experienced Leadership will Support Long Term Growth: Mr. Adam Woldrige (CEO of Cobre Ltd.) and Todd Axford (CEO of Fuse Minerals) both have over 20 years of experience in the mineral exploration industry across Australia and Africa. From a leadership standpoint, the Executive Chairman of Cobre Ltd., Mr. Martin Holland, was the founder and CEO of Lithium Power International (ASX: $LPI) from 2015 to 2018 and has listed five ASX-listed exploration companies and has been an executive director in multiple companies that have collectively raised over $200M+ towards future metal focused greenfield exploration on assets across the globe. Meanwhile, Mr. Todd Axford founded GTTS Generations, a company focused on project generation and mineral discovery, which aligns perfectly with Todd’s commitment to exploring untapped resources and pushing the boundaries of geological understanding with Fuse Minerals. Both leadership teams have industry-relevant experience and sector-specific knowledge that anchor their companies as potential growth stocks in the mineral sector. 

Project Prospects: Fuse Minerals has three prospective projects in copper, gold, silver, lead, and zinc. These projects are located in the well-recognized area of Western Australia between Nifty, Woodie Woodie, Telfer, Havieron, and Winu, and tenure is secure. Cobre Ltd. meanwhile focuses on copper, with investment-friendly fields located in Botswana, Gabon, and Australia. Their projects are located in countries with attractive investment backdrops and property rights, ensuring long-term value for investors. 

How are Cobre Ltd and Fuse Minerals Different? 

While they operate in the same sector, Cobre Ltd. is focused on the exploration and discovery of copper and new high-grade base metal deposits in Botswana and Western Australia. Cobre Limited is a pure-play copper explorer across two Tier-1 mining jurisdictions, Australia and Botswana, and has discovered a VMS deposit enriched in high-grade copper, gold, silver, and zinc within its Perrinvale Project area in the Panhandle Greenstone Belt of Western Australia.

Meanwhile, Fuse Minerals has developed a strategy, supported by the right projects and the right team, aimed at supplying tier 1 mining companies with the deposit discoveries they need to build the mines of the future. Additionally, Fuse Minerals has established a portfolio of projects in favourable geological settings with the potential to deliver deposits of copper, nickel, silver, lead, zinc, uranium, and gold. However, while Fuse Minerals is more focused on downstream exploration, Cobre Ltd. will likely integrate upstream manufacturing companies in the renewable sector.  As such, they serve different parts of the mineral supply chain but are complementary to investors looking to ensure long-term value for their portfolios or explicitly focus on the mineral sector. Furthermore, Cobre Ltd. operates in Australia and Africa while Fuse Minerals only operates in Australia at present. 

Why invest in these Companies? 

Cobre Limited has a diversified investment portfolio, allowing it to diversify and mitigate risks, while ensuring it can serve a variety of markets at limited costs. Its in-situ recovery method offers a low operational and capital expenditure solution while being environmentally friendly, potentially producing green copper cathode on-site. As a listed company, it has strong growth potential. On the other hand, Fuse Minerals is utilising a farm-out / farm-in model, to deliver tier 1 scale deposits in commodities of interest to tier 1 miners. Fuse focuses on proving deposit potential and then partners early with those established miners, to fund further exploration and development. This avoids constant capital raisings and associated dilution and downward pressure on share prices. With their IPO set to go live on the Australian Stock Exchange (ASX), now is a good time to grab shares before they begin trading at a premium. 

Price Points: Cobre Ltd (ASX: $CBE) witnessed a significant market movement, initially marking a low of 0.650 AUD on August 29, 2022. Subsequently, the stock has choppily trended downwards with a sell-off amplified by low trading volumes, reaching 0.044 AUD in December 2023. However, the stock has risen by 43.18% year-to-date, appreciating by 10.53% over the last week. It has equally outperformed its peers such as Superior Resource Ltd (ASX: $SPQ) and G11 Resource Ltd (formerly Odin Metals Ltd) whose year-to-date and one-week performance is -84%, -14.29%, and 0.00, -4% respectively. The Cobre Ltd. could surpass its recent gains and test the 0.072 resistance point.

Although Fuse Minerals is not yet listed on the ASX, its prospectus suggests it has 50,000,000 fully paid ordinary shares (Shares) at $0.20 each to raise a minimum of $6,000,000 and a maximum of $10,000,000 (less costs), as well as the offer for the issue of up to 4,874,944 options to Unified Capital Partners Pty Ltd ACN 666 560 050. Applications under the Public Offer must be for a minimum of 10,000 Shares ($2,000) and then in increments of 2,500 Shares ($500). While there has been speculation about missed targets and a postponed IPO date, Fuse Minerals is backed by some minimum bigwigs and has already raised the $6 million required to list on the ASX. Now is a good time to buy some stocks before its ASX listing causes its share price to rise further. 

Both shares are ideal for new investors looking for innovative mining companies seeking to advance the renewable energy sector. While they are new and don't have a ten-year history, their agility and innovation will see their share prices rise over the long run. Technical analysis already reveals that Cobre Ltd will outperform in 2024 and Australia’s mining reputation and experienced management teams make them well-placed to see stock price appreciation.  Finally, newer companies are more agile and can make better decisions than more established companies, while the approach to partnerships will reduce volatility and ensure long-term returns while reducing risks for investors. For example, Cobre Ltd has a partnership with BHP while Fuse Mineral’s model allows it to finance exploration in fields that have long-term potential. 

With demand for minerals set to rise as countries transition to more sustainable models, it is the best time to buy stocks with high-growth potential and diversify your portfolio with stocks that operate across the world. These stocks are ideal for investors with a domestic and international focus and are sure to perform well in the coming years.