Gold played second fiddle to industrial metals this week with copper, nickel and iron ore doing best despite the rolling uncertainty of the China v US trade war. But in the background was an event which could see gold perk up next week.
Top Melbourne fund manager Hedley Widdup from Lion Selection Group has likened current market conditions for junior miners to the early 2000’s , but has predicted a growing flow of money into the junior resource sector over the months and years ahead.
Plus, strong iron ore price recovery boosts the outlook for Centaurus’ Brazilian iron ore project and Gateway looks to repeat the lucrative strategy of revitalising old WA gold mines
It was suggested here last week that what Breaker Resources’ executive chairman Tom “Colonel” Sanders had to say at this week’s Resources Rising Stars’ conferences in Sydney and Melbourne could be pivotal.
The argument was that having established a 1.1m oz resource at its February 2016 virgin Bombora discovery, 100km east of Kalgoorlie, the pressure was on Sanders to convince the market it was undervaluing the stock in a major way.
Ratings agency Fitch is forecasting a surge in demand for nickel as China switches to making EV batteries containing a much larger nickel component than hitherto (reports MiningNews).
Speaking to global investors via a webinar about key 2019 mining themes, Diego Oliva-Velez, Fitch Solutions commodities analyst, said: "Second-generation lithium-ion batteries have a different chemistry, one that uses mainly nickel manganese and cobalt (NMC), while current EV batteries rely more heavily on lithium iron phosphate (LFP).