Perth broker Euroz has re-iterated its strong belief in Lucapa Diamond Company
Perth broker Euroz has re-iterated its strong belief in Lucapa Diamond Company (LOM), saying the stock is set to rise sharply on the back of expanding production.
Euroz has set a buy recommendation on Lucapa with a price target of 61c, well ahead of its current price of 17c.
London broker Panmure Gordon already has a 45c price target on Lucapa.
Euroz says the recent US$10m sale of gems from the company’s Lulo project in Angola provides further evidence of the joint venture’s ability to self-fund a 50 per cent expansion of alluvial diamond mining operations.
Pure Alumina (ASX: PUA) is on track to acquire one of the world’s most efficient and effective processes for making high purity alumina (HPA), according to the man who is poised to become the company’s new managing director, Scott Nichol (reports Stockhead).
Nichol is the founder and chief executive of Polar Sapphire, the Canada-based company which owns this world-leading HPA technology. Pure Alumina is now in the process of acquiring Polar Sapphire and, as part of the deal, Nichol will become Pure Alumina’s managing director.
Good news in iron ore, gold and rare earths couldn’t spark investor enthusiasm in a week when most interest seemed to be in the negative effects of the China v US trade war
Good news in iron ore, gold and rare earths couldn’t spark investor enthusiasm in a week when most interest seemed to be in the negative effects of the China v US trade war and adjusting portfolios ahead the end of the financial year.
So much negative sentiment might reasonably have been expected to have helped gold stocks move up further than they did, especially given the strong flow of funds into physical gold and exchange-traded funds.
Lucapa Diamond Company boss Stephen Wetherall knew he was in the den of gold investors when he took to the stage at last week’s Resources Rising Stars conference
Lucapa Diamond Company boss Stephen Wetherall knew he was in the den of gold investors when he took to the stage at last week’s Resources Rising Stars conference on the Gold Coast (reports Barry FitzGerald on Stockhead).
So to give the punters a feel of how the high quality diamonds produced by Lucapa from its two African mines out shine gold on a value-for-weight basis, Wetherall did some conversion work for them.
He noted that the 12,500 carats of diamonds in the last two sales from Lucapa’s mines fetched $20m.
After the building comes the painting, an odd observation but one that could be profitable for investors prepared to look beyond trade-war headlines and see how the same building boom in China that is helping lift the iron ore price should soon lift demand for titanium dioxide (reports TimTreadgold in The Australian).
Connecting the dots that link the China v US trade war to form a picture that shows increased demand for paint — and other “end of cycle” commodities such as copper — is not hard because it has happened repeatedly in the past.
Sentiment in the junior mining space has reached “peak despondency” and could be ripe for a turning point, according to a respected fund manager (reports The West Australian).
Delivering the keynote address at the Resources Rising Stars conference on the Gold Coast, Lion Selection Group investment manager Hedley Widdup says a resurgence in M&A activity at the major end of the resources sector could usher in growing interest in the junior end of the market as the big players go looking for growth.
The trickledown effect of the surge in iron ore prices in response to Vale’s January 25 tailings dam disaster is starting to take effect.
Project proposals consigned to history when iron ore prices tanked some years back are being dusted off in the hope that the $US100/t prices are here to stay for the foreseeable future.
Rare earth stocks woke with a jolt this week, for the same reason iron ore stocks have been on fire. Both sectors are winners from the increasingly dangerous trade war which has pitted the US against China.
The iron ore rally is well understood. It’s an event driven by a supply squeeze courtesy of problems in Brazil and demand-pull courtesy of China stimulating its economy to offset declining exports to the US.