Plus, DGO joins the great ‘Pilbara gold boom’, Talisman prepares for a copper monty and Whiteback to start drilling its big WA oil prospect
Zinc’s spectacular 48% price rise to $US1.40/lb from last (calendar) year’s average of 95c/lb is forcing a rethink on valuations across the bunch of near-development plays in the metal on the ASX.
It’s a case of valuations having to catch up with the runaway metal price. The biggest of the plays, New Century Zinc (NCZ) with its tailings retreatment plans for the mothballed Century mine in north Queensland, is a case in point.
There is a huge disconnect between the emerging lithium producer’s market cap and its impending cashflow – but how long can it last? Plus, Rumble Resources joins the red-hot zinc sector
Ken Brinsden is an unflappable sort of guy.
But there was a sense of exasperation from the Pilbara Minerals (ASX:PLS) chief executive earlier in the week on the subject of the apparent disconnect between the market’s treatment of ASX-listed lithium stocks this year and the “absolutely ballistic’’ growth in China’s lithium-ion battery market.
Brinsden is gobsmacked that a basket of ASX lithium stocks (including Pilbara) are down by 12 per cent in the year-to-date against an 18 per cent increase in the China domestic price for battery- grade material.
Plus, the whiff of a big find at Jundee, Geopacific starts re-rating on Kula success, Tawana set to fly through lithium’s open window and Slovakian gold hopeful to bang IPO drum in Kalgoorlie
Diggers & Dealers kicks off in Kalgoorlie next week with the biggest roll up in five years expected. The 2000-plus mining and finance types due to rock up are doing so with the hope of divining something they did not already know, thrown in with a liberal dose of bonhomie.
But the fun police at ASIC insist nowadays that companies release market sensitive information when it comes to hand.
Plus, Kairos adds a cobalt leg in an emerging area just south of Breaker Resources’ world-class gold discovery
Rio Tinto is not spending $US1.9 billion on developing its Amrun bauxite project south of Weipa on Cape York Peninsula on a wing and prayer.
Due to start production in the first half of 2019, Amrun’s planned annual output of 22.8 million tonnes will both augment Rio’s existing Weipa operation, as well as allow a step-up in exports of the alumina/aluminium raw material to China.
The stepped-up export opportunity comes from the hand-over-fist growth in China’s aluminium industry, and the demands it is making on China’s domestic supplies of bauxite.