12-July-2022: Haven't used this forum thread for a while - however, I came across the following today - penned by Henry Jennings of MarcusToday and included in their newsletter today - and thought this might be a good place to put it, with some additional comments (about S32).
The chart includes the share price performance (in 2022 year to date) of Sunrise Energy Metals (SRL), Mincor Resources (MCR), Jervois Global (JRV), Centaurus Metals (CTM), Panoramic Resources (PAN), Nickel Industries (NIC), plus the price movement over the same period of Nickel, Gold, Zinc, Cobalt, Lead, Silver, Copper and Tin.
I would add another base metals company to that list - South32:
They are also down since January 1st. South32 (S32) produce nickel, copper, zinc, and they are also one of the world's major producers of silver at their Cannington mine. Sometimes it's worth looking at the larger and more diversified miners as well as the smaller ones who are less diversified by commodity produced.
As you can see there, when base metal prices are rising, the S32 share price rises as well. It's an easy way to get exposure to these metals if you're bullish on them.
Hi Bear.
thanks as always for all your work.
im intrigued as to how you see the somewhat conflicting patterns of a new commodity cycle evolving against the backdrop of a global recession?
these two things are usually incompatible
thanks
c
07-Sep-2020: MiningNews.Net: Iron ore hits new six-year high
Iron ore hits new six-year high
IRON ore and copper hit new highs on Friday, while US stocks fell further after Thursday’s plunge.
The MySteel 62% Australian iron ore fines price rose another 2% to US$130.50 per tonne, the highest price seen since early 2014.
The LME cash copper price jumped 2.4% to $6729.50/t, its highest level since late June, 2018.
According to Bloomberg, warehouse stockpiles of copper are at the lowest level since 2008.
Lead and nickel each rose by more than 1%, but both fell short of recent highs.
Gold was weak on Friday, closing at $1937.80 an ounce, but had risen in early trade this morning to $1942/oz.
Oil fell 3.9% on Friday to $39.77 a barrel, the lowest since late July.
US stocks fell further on Friday, with the NASDAQ losing 1.3% and the S&P 500 down 0.8%.
Australian futures were down 36 points, while European and North American futures were also down.
US and Canadian markets are closed today for Labor Day.
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More Reading:
Bull case - from Ausbil, 22-Jun-2020: https://www.sharecafe.com.au/2020/06/22/iron-ore-likely-to-remain-resilient-ausbil/
Bear case - from Mining.Com based on a Wood Mackenzie report - but this article was written back in March, and things have moved on from there, including further Chinese economic stimulus and supply constraints in Brazil (Vale having to shut down or severely reduce production at various iron ore operations there): https://www.mining.com/iron-ore-price-resilience-likely-wont-last-report/
Something a little more recent - from agmetalminer.com on 13-Aug-20: https://agmetalminer.com/2020/08/13/iron-ore-price-proving-resilient-despite-slow-global-recovery/
01-Sep-2020: https://www.australianmining.com.au/news/australia-one-of-the-most-resilient-regions-for-mining/