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.
A phase four follow-up program of reverse circulation and diamond drilling at key targets within Kin Mining’s Cardinia gold project in WA is enhancing the company’s geological understanding of the underexplored Eastern Corridor area
A phase four follow-up program of reverse circulation and diamond drilling at key targets within Kin Mining’s (ASX: KIN) Cardinia gold project in Western Australia is enhancing the company’s geological understanding of the underexplored Eastern Corridor area (reports Small Caps).
The program comprises an additional 63 holes for a total 9700 metres and has been designed to extend the project’s mineral resource along strike to the north and at depth to 200m below surface.
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.
Most of the big names in Australian gold mining have had a rough ride recently as the gold price has struggled to reclaim last year’s all-time high
...but it’s a different story at the small end of the game where exploration success is the key to share price movement (reports Tim Treadgold on Small Caps).
The difference between producers and explorers is an interesting example of the old saying about it being better to travel than to arrive.
Dividends and yield have become the primary appeal of some big gold producers, a novel situation given the high risks associated with any form of mining and a position which will be challenged in the next interest-rate rising cycle.
Bellevue Gold's grade-control drilling has confirmed the continuity of the Tribune Lode
Bellevue Gold's grade-control drilling has confirmed the continuity of the Tribune Lode, in Western Australia's Eastern Goldfields, delivering exceptional intercepts, such as 2m at 176.6 grams per tonne within 5m at 76.4gpt from 55m; and 5m at 31.7gpt from 43m (reports MiningNews).
The company says its two-rig program, on a 10m by 10m pattern, is rapidly advancing the resource drill-out ahead of development, and continues to show the robustness of the resource within the planned open-pit.
Auteco Minerals is flagging open pit potential at its Pickle Crow project in Canada
Auteco Minerals is flagging open pit potential at its Pickle Crow project in Canada, with the discovery of shallow high-grade gold while testing the Carey target, with intercepts such as 20.4m at 5.3gpt from 102.7m, including 2.2m at 9.3gpt (reports MiningNews).
In addition to Carey, drilling has extended the known high-grade gold mineralisation in the Shaft 3 and Shaft 1 areas, including a previously undiscovered shear vein, with hits such as 4.9m at 7.5gpt from 483m and 3.3m at 8gpt from 836m.
Impressive results of up to 60m at 3.03g/t gold continue to highlight potential to grow all key deposits that make up Genesis Minerals’ (ASX:GMD) 1.6Moz Ulysses gold project in WA (reports Stockhead).
Drilling has now confirmed mineralisation over 400m of strike at the Puzzle North discovery, about 700m north of the shallow 59,000oz Puzzle resource.
Besides the top hit — which includes a high-grade zone of 8m at 12.9 grams per tonne (g/t) gold — new intercepts also include 84m at 1.98g/t gold from 84m (including 10m at 6.31g/t gold from 116m) and 40m at 2.52g/t gold from 44m.
And there’s still room to grow. Mineralisation at Puzzle North remains open along strike and at depth along the granite-greenstone contact, meaning that further drilling could uncover more gold.
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.