Spectacular share price jumps on early-stage exploration results reflect investors’ appetite for leveraged exposure to red metal, with Tennant Minerals among those attracting attention. Plus DGO Gold looking cheap on Hemi and Canaccord tips Kingston.
Copper has not experienced the wild upswing in price that a range of other mineral commodities have in response Russia’s invasion of Ukraine.
But the red metal has been as strong as you like against a backdrop of growing concerns around cohesive global economic growth.
Sanction-hit Russia is a significant copper producer, accounting for about 4% of global production, most of which it exports, or of late, tries to export.
Booming market sees emerging WA producer already immersed in takeovers and expansion speculation, while peers Sovereign and Sheffield are also attracting renewed attention. And with a resource update pending at Genesis, is Raleigh Finlayson set to emerge as the King of Leonora?
Plus, JP Morgan highlights upside for Chalice and Sunstone says its Alba gold-copper discovery has scale as well as high grades.
It doesn’t take much for a junior exploration company to have a $50 million market cap nowadays.
All it needs to say is that it is looking for lithium or one of the other “green” metals like copper or nickel somewhere in WA, and it’s pretty much there.
That observation leads into today’s main interest, AusQuest (ASX-AQD). It is trading at 1.9c for a market cap $15.6 million, or $12 million at the enterprise level after counting its cash.
Plus, little-known Labyrinth Resources uncovers historic hits of over 100gpt as it prepares for JORC resource at new Canadian project and fresh drilling results fuel hopes that Rumble’s Earaheedy project in WA is a base metals province in the making.
Gold’s retreat from near-record levels to sub-$US2,000/oz has put a stop to the re-rating of the leading gold stocks, for the time being at least.
The re-rating got going at least 10 days before Russia invaded Ukraine and was notable in that the second-tier gold stocks and developers were pretty much left behind.
But in recognition that the current price ($US1,983/oz late on Thursday, with volatility in response to the next war headline the order of the day) still represents a seriously elevated gold price, the second-tiers and developers are in catch-up mode.
Hammer hitting copper in Queensland, Calidus eyes first gold as its lithium exploration fires up and gold hunts by Nagambie and Mamba attracting strong interest.
The copper price was doing nicely long before Russia invaded Ukraine, having risen 51% from its (calendar) 2020 average to a 2021 average of $US4.22/lb.
The price has been swept higher in recent days to $US4.65/lb in recognition that, on Macquarie figures, Russia accounts for about 4% or 1mtpa of global copper supply, of which about 75% is – or was – exported.
So while copper is not in the same basket as the energy commodities which have shot massively higher in response to the invasion, the copper price is certainly now consolidating in record territory levels.
Calidus and Red 5 about to join producers, setting them up for re-rating in hot bullion market. Plus, metal shortages stemming from Ukraine sanctions could boost sold-off juniors like Hot Chili and Sunstone.
There was nowhere to hide in equity markets when the tanks rolled into Ukraine under the orders of Russian president Vladimir Putin.
There was an exception – gold. The yellow metal demonstrated its safe haven attributes (where was Bitcoin?) by taking off to 20-month highs of more than $US1,940/oz in the Australian time zone, taking gold equities along for the ride.
Leading gold producers gained 4-6%, continuing the trend that set in a few weeks ago when the uncertainty around the Ukraine, and the western world’s response, began to hit the airwaves.
Plus, RareX set for its day in the sun as Cummins Range project gains size and grade in a world desperate for rare earths
Bustling Billy Beament has been threatening to pull off a signature deal ever since arriving from Northern Star at the base metals developer and mining services group Develop Global (DVP, formerly Venturex).
He has done just that by securing a widely anticipated deal to acquire the mothballed Woodlawn zinc-copper mine near Canberra in NSW from creditors of Heron Resources for $30 million in cash and shares upfront, with $70m payable on success milestones being met.
Deal with global giant comes as Cameco fuels uranium bulls with decision to restart two mines. Plus, Coda’s corporate action puts spotlight on its upside and Caspin likens its find to Chalice’s Gonneville
Last week’s suggestion that Boss Energy (BOE) must be close to deciding what to do with the hidden copper-gold-zinc potential of the tenements covering its Honeymoon uranium project in South Australia’s Curnamona province was on the mark.
The suggestion was based on a diary entry from February last year which noted Boss had completed a comprehensive desktop review of all historical geoscientific information acquired since exploration began in the area in the late 1960s.