Commodities have soared in recent weeks – think aluminium – and in recent months – think oil – amid signs of global synchronised growth and strategists say there's still time to profit, even though some prices have overshot near term (reports the Australian Financial Review).
Nickel with a 7 in front of its price and oil moving closer to a price with an 8 in front were two highlights in a week dominated by geopolitical events, but there was perhaps a subtler shift underway with mid-tier resources stocks possibly being acquired as yield plays.
Plus, Macquarie tips Kirkland Lake stock to ‘outperform’ thanks in no small part to its exceptional Fosterville gold mine in Victoria.
Zinc prices have come off a touch from the 10-year highs seen in the opening months of the year. But at the current price of $US1.47/lb - more than twice its low in 2016 – there can be no complaints about the metal’s performance, one driven by the possibility of an actual physical supply pinch if the world’s official and hidden stocks continue their dramatic slide.
Oil at a three-year high and gold not far behind were the best indicators this week that financial markets are becoming more volatile and while it might seem hard to pick winners at times like these, they are actually quite obvious – they’re stocks exposed to gold and oil.
Takeover time in the mining sector gathered pace in the shortened pre-Easter week when OZ Minerals launched a bid for copper explorer Avanco -- prompting a sell-off in OZ shares and serving as a warning for investors to watch out for over-eager managers.
Plus, Piedmont looking to tap into US auto industry with its made-in-America lithium and Kirkland’s stunning Fosterville shows it is on track to be Australia’s best gold mine
Thanks to its marketing and trading arm, Glencore has a better feel than most for what’s going on out there in commodity markets.
And because of the confidence that comes from having a big stake in the company, Glencore boss Ivan Glasenberg doesn’t waffle on the subject like so many of the paid servants at other miners do.
Glasenberg was his adroit self when running through the commodity outlook at Glencore’s profit result call this week. The highlight had to be his thoughts on copper.
Plus, Centaurus’ local knowledge lands it a highly prospective Brazilian nickel-cobalt play alongside Anglo and Vale
A diary entry shows that the misnamed Hill End Gold (HEG) must be close to releasing a maiden resource estimate for its Yendon high-purity alumina (HPA) project some 25km south-east of Ballarat.
It is bound to gain attention as HPA is following in the footsteps of previously ignored specialty materials like graphite and cobalt which are enjoying super-charged growth in demand due to their use in a range of new and hi-tech applications.