Commentary
The Ninepoint Resource Class, a class of mutual fund shares of Ninepoint Corporate Fund Inc, is the designated liquidity vehicle for the Ninepoint Flow Through Partnerships. No liquidity events occurred in Q3 2026.
For Q3 2026 the Fund delivered a total return of 6.66%, compared to the benchmark at 16.57%. The underperformance is largely attributed to an underweight (12.3%) position in oil and gas (via the Ninepoint Energy Fund), relative to the Index (50%).
NINEPOINT RESOURCE FUND CLASS - COMPOUNDED RETURNS¹ AS OF SEPTEMBER 30, 2026 (SERIES F NPP967) | INCEPTION DATE: FEBRUARY 8, 2022
|
|
1M |
YTD |
3M |
6M |
1YR |
3YR |
5YR |
10YR |
INCEPTION |
|
Ninepoint Resource Fund Class |
-10.48% |
12.99% |
6.66% |
-1.75% |
15.25% |
25.61% |
|
|
6.37% |
|
50% TSX Cap Materials, 50% TSX Cap Energy |
-3.98% |
32.19% |
16.57% |
4.39% |
44.45% |
33.18% |
|
|
25.61% |
As of Sept 30, 2026 the Fund’s commodity mix continues to be dominated by precious metals (50% vs the index at 38%) and uranium (11% vs the index at 0%). In addition, the Fund equity holdings included exposure to copper (10%), rare earths (3%) with the remainder in various other industrial metals and oil and gas (12.3%).
The commodity complex including precious metals, remained volatile in Q3 2026. Precious metals opened the quarter under pressure, testing and maintaining the $4,000/oz support level in July before rebounding in August as soft US jobs, CPI and PPI data pulled September rate-hike odds down. The positive momentum in gold accelerated in mid-August, when the US Treasury announced it would at least double the size of its long-end liquidity-support buyback. Gold reversed most of its August gains in September as the market digested the much anticipated Fed rate hike.
As a result of our positive long-term outlook for nuclear power growth, the Fund maintained its overweight position in uranium equities. Long-term uranium price continued to climb reaching an all-time high of ~US$96.5/lb in September. Supply uncertainty continues as Kazatomprom cut its 2026 guidance by 10% citing sulfuric acid availability issue. In US, DOE's $17.5 bln loan commitment in June 2026 to fund construction of 10 AP1000 reactors reinforced the long-term nuclear buildout and structural demand tailwind. Despite the positive momentum in the uranium market, uranium equities (as measured by URNM) underperformed the commodity during the quarter, dropping ~8% versus +4% increase in the spot uranium price.
Copper continue to outperform in Q3 2026. As the White House's Section 232 review of refined copper imports, originally due by June 30, remained unresolved into quarter-end, sustaining a wide COMEX–LME spread and continued stockpiling of metal into US warehouses. Global supply also remained constrained by the disruptions at several large copper mines, while weather related supply disruptions in regions like Chile and higher sulphuric acid cost created new supply headwinds. Copper equities (measured by COPX) outperformed the metal and returned +10% during the quarter.
The Fund has continued to invest in a variety of critical minerals, including rare earths as China continued to tighten export controls, placing additional US companies under restriction in June and blocking shipments to EU firms in July. Ex-China supply bottlenecks persisted, particularly for heavy rare earths, while continued US and allied efforts to build out a domestic and ex-China supply chain supported sector sentiment.
At the individual security level, our top Fund contributors for the quarter was the exposure to Energy (i.e, Ninepoint Energy Fund). In metals and mining continuing strong exploration results from Talon Metals and First Mining Gold, which received a key permit during the quarter. Conversely, performance detractors during Q3 2026 included gold explorer Trident Resources, uranium explorer CanAlaska, as well as rare earth producer Lynas Rare Earths.
Outlook and Investment Strategy
We continue to believe the metals and mining space is moving into a decade plus bull cycle with the primary demand drivers for the sector now including geopolitics/national security factors as well as continued demand growth from technological advances (including AI) as well continuing demand support from ongoing de-carbonization trends. In the Fund we continue to focus on high-quality names across our preferred metals in order to provide investors with diversified exposure to this evolving landscape. The commodity mix in the Fund remains focused on equities with exposure to metals with positive growth fundamentals.
Nawojka, Henry, Eric
Ninepoint Partners