Iron ore, coal and oil ore will be the commodity winners when the financial is ruled off next Wednesday. Gold, however, will end flat when looked at over the full 12-months, while copper and other battery metals continue to shape as next year’s winners.
In a nutshell, that’s where we have been in financial year 2020/21 and where we appear to be headed as financial markets say goodbye to a roller-coaster ride dominated by the Covid-19 pandemic and government spending designed to stave off a depression.
By this time next year, a different picture will emerge, probably one dominated by the struggle to reel in the excess cash created in reaction to the pandemic which means inflation and interest rates will be one of big issues to watch, with energy transition another.
Sandfire Resources has achieved a new shipping record, with sales from a single cargo of US$50 million (A$64.5 million) (reports MiningNews).
The shipment of 23,274 wet metric tonnes of copper concentrate from the DeGrussa operation left Geraldton bound for one of Sandfire's offtake partners in India.
Record high copper prices meant the shipment broke the previous record of A$52 million, set in December 2020.
"This shipment is higher in value even than many large iron ore shipments and sets an impressive new record for the DeGrussa operations," Sandfire managing director Karl Simich said.
Exploration and discovery news will become more important than ever for investors in Australian resources after this week’s intervention by China in commodity markets followed by another warning from the U.S. that higher interest rates are on the way.
The Chinese plan to sell surplus material from government stockpiles of critical metals such as copper and nickel has had a dampening effect on prices, while the U.S. central bank’s interest rate signal mean that gold faces a tough time.
Both of those events at the top of the investment food chain had been widely expected as markets rattled by the Covid-19 pandemic start to normalise, radiating out ripples of uncertainty.
Boss Energy set to feed investor appetite for near-term uranium producers with release of pivotal feasibility study. Plus, the runaway share prices of Coda and Sovereign show we were on the mark. And Black Canyon prepares to drill
Uranium stands as the coiled spring of the commodities space. At some point, the price of the nuclear fuel is going to take off.
That’s the broad expectation out there. Ask around about the commodity to watch in the next 12 months and the answer increasingly comes back as uranium.
Maybe so, but the reality is that at $US32/lb (spot), the uranium price remains well below the $US60/lb price considered necessary to incentivise the investment in new supply required to fill the ever-widening gap between supply and long-term demand.
It gave the world Covid-19 and now it looks like China is giving the world inflation and while some people might not see the connection between Covid and inflation, they are both a threat and an opportunity for investors.
To understand the significance of an inflationary outbreak, you only have to look back 18 months to see how a disease can turn financial markets upside down. Heavy losses at the start and fat profits later.
Inflation, if allowed to rise too far, is an equally dangerous infection which destroys the value of certain types of investment (especially cash), but the flipside is that it improves the performance of hard physical assets such as property, gold and other commodities.
Shareholders of Venturex Resources have overwhelmingly approved a recapitalisation and the election of several highly regarded directors (reports MiningNews).
An extraordinary general meeting was held yesterday in Perth to vote on the recap, worth up to A$58 million, as announced in February, which was approved by roughly 99% of shareholders.
Northern Star Resources executive chairman Bill Beament will join the company as executive director on July 1 and will contribute $37.3 million of the recap funds.
Beament will subscribe for $8.9 million worth of 8c Venturex shares, which will give him an 18.1% stake in the company.
It is not often the activity of criminals provides an investment idea, but when they start stealing copper wire from power stations, or from building sites, then you know it’s time to brush up on copper miners (reports Tim Treadgold on Small Caps).
Kingston in South Australia, a coastal centre more famous for Larry the big lobster, hit the headlines a few days ago when copper wiring was stolen from a nearby power station, plunging the town into the dark.
What encouraged the thieves to risk their lives stealing copper from an active power station was the simple enticement of being able to sell it for a handsome profit thanks to a record copper price.