Leading fund manager names Boss as his pick of the uranium stocks. Plus, South32’s copper deal a boost for porphyry hunters such as Sunstone and Hot Chili.
World leaders - most of them anyway – will soon be heading to Glasgow for the United Nation’s Climate Conference, otherwise known as COP26.
The idea is that there will be commitments to accelerated net zero emission targets to save us all from global warming through decarbonisation and the electrification of everything.
Nickel led the way this week with its price at a seven-year high, followed by fresh moves in a takeover duel pitting BHP against Andrew Forrest, but the more important development was news the house prices in China fallen for the first time in seven years
While not directly affecting Australian investors, yet, falling home values add to China’s problems of soaring energy costs and the potential collapse of a big property developer.
Those events will be making Chinese consumers feel poorer and therefore less liable to spend which will have an effect on companies selling material to China, while rising costs in its manufacturing industry will see China start to “export” inflation.
Pilbara Minerals boss Ken Brinsden believes there is still further room to lithium to continue its stunning 2021 rally (reports MiningNews).
Spodumene prices were below US$400/t just a year ago, sparking a fight for survival for Pilbara and others.
Pilbara was one of the companies to survive and become stronger.
"It hurt but we learned some valuable lessons," Brinsden told The Boom in a Room Investor Conference on Friday.
But even bullish Brinsden couldn't have foreseen the "extraordinary" rally in prices in 2021.
Sandfire Resources managing director Karl Simich believes the penny is yet to drop for investors following the company’s latest acquisition (reports MiningNews).
Last month, the company announced the US$1.865 billion acquisition of the MATSA copper complex in Spain, which is the largest all-cash offer ever by an Australian mining company.
The equity part of the deal required Sandfire to raise A$1.24 billion at $5.40 per share.
The stock dropped as low as $5.05 earlier this month but closed at more than $6 on Friday.
"In my view, we're worth at least $10 a share as we sit here today," Simich told The Boom in a Room Investor Conference on Friday.
Can lightning strike twice for De Grey Mining’s (ASX: DEG) chairman Simon Lill as he ventures into nickel via the Nimy Resources IPO? (writes Tim Treadgold on Small Caps)
The chairman of the hugely successful gold explorer De Grey, has turned his hand to nickel as chairman of classic grass roots explorer Nimy, which has its foot on a big chunk of outback WA largely ignored by early prospectors.
Nimy is in the process of trying to raise up to $7.5 million to fund exploration of a 1,761 square kilometre tract of ground in an inhospitable location near the historic BHP (ASX: BHP) iron ore mining centre of Koolyanobbing.
RED 5 experienced a quarter free from mill issues at its mainstay Darlot gold mine in Western Australia, with the operation breaking crushing and milling records in September (reports MiningNews).
With the nearby King of the Hills operation still under redevelopment, Red 5 has been forced to rely on the aging Darlot facility and remnant ore in the Darlot underground, both of which have delivered operational challenges.
The worst days may be behind Red 5.
The mill crushed a record 104,184 tonnes for the month of September, including a daily record of 5904t, and the month set milling record of 95,749t.
In August, the Sprott Physical Uranium Trust (SPUT) started buying up physical uranium, taking it out of market circulation (reports Stockhead).
It has been a proverbial “can of kerosene” on the spot price, which has since risen from ~$32/lb to about ~$US47/lb currently.
SPUT has stacked (removed) over 15.3m pounds of uranium since inception. A gigawatt-class reactor uses around 450,000 pounds per year, so this is no small amount, says 808s Online, a blog run by a US nuclear professional.
New World Resources expects to release a maiden resource for its Antler copper mine in Arizona by the end of this month (reports MiningNews).
The mine, which closed in 1970 due to low copper prices, has a historical resource of 4.7 million tonnes at 1.95% copper, 4.13% zinc, 0.94% lead and 35.9 grams per tonne silver.
"[The maiden resource] will exceed the 4.7 million tonnes," New World managing director Mike Haynes told The Boom in a Room Investor Conference in Perth.
"By how much I don't know."
Still, given the exploration upside, New World sees the upcoming resource as an "interim" number that will underpin mine studies and permit applications.