Mining and resource stocks

[arekaywhy]

Generally, the last 6 months have seen a decent increase in share price for the larger players in the land of Oz.

Happy with that, as part of my overall strategy at the moment is to have a significant exposure to primary resource stocks.

My opinion is that this is a bit of an inflation hedge, however, some would argue that once inflation gets too high, or persistent, mining takes a hit when folks don't want so much stuff any more...

Thoughts?

[Raven]

I've been slowly increasing my weighting to OZ miners over the course of the year. I feel lithium, copper, nickel all have long term tailwinds. Not quite so sure re iron, gold, etc.

[Plata]

I've had an enjoyable ride selling your lot equipment through asx:ddh1. I agree re the battery material plays, but I would not consider it a guarantee as there are many things that could derail the lithium train. New battery technology springs to mind. Probably cant go wrong with copper though.

[arekaywhy]

https://www.arkansasonline.com/news/2022/dec/17/coal-use-on-track-for-all-time-high-in-22/?business

Some good news

[Hectorplains]

Generally, the last 6 months have seen a decent increase in share price for the larger players in the land of Oz.

Happy with that, as part of my overall strategy at the moment is to have a significant exposure to primary resource stocks.

My opinion is that this is a bit of an inflation hedge, however, some would argue that once inflation gets too high, or persistent, mining takes a hit when folks don't want so much stuff any more...

Thoughts?

Agree that he large players have done well; however, many juniors have been smashed. There looks to be some good buying now in that speculative space.

[Hectorplains]

Tesla potential takeover of Sigma Lithium highlights the huge demand for the metals used in electric vehicle batteries.  Stockhead outlines other corporate plays in Li stock. 

I've taken a small punt on penny dreadful Pursuit Minerals Ltd (market cap $50m) who just purchased an Argentina focused lithium company with ambitious plans to be developing the resource this year. If they manage this successfully there is the potential for a considerable rerate.
 

[Crackity]

Tesla potential takeover of Sigma Lithium highlights the huge demand for the metals used in electric vehicle batteries.  Stockhead outlines other corporate plays in Li stock. 

I've taken a small punt on penny dreadful Pursuit Minerals Ltd (market cap $50m) who just purchased an Argentina focused lithium company with ambitious plans to be developing the resource this year. If they manage this successfully there is the potential for a considerable rerate.
 

FZR still my fave - Mainly me talking about it on HC 

[Hectorplains]

HPR still in your bottom draw?

[Crackity]

HPR still in your bottom draw?

Absolutely - watching Noontide slowly buy more and they now control the Board

[Crackity]

FZR still my fave - Mainly me talking about it on HC 

https://www.newshub.co.nz/home/money/2023/07/gold-struck-at-new-zealand-s-deepest-mine-could-be-worth-2b.html

[Hectorplains]

It looks like the great run coal stocks have had might be near its peak.

Global demand for coal rose to a record in 2023, led by strong growth from China and India, underlining the challenge ahead after world leaders agreed this week to move away from fossil fuels to combat climate change.
The International Energy Agency said world demand for coal rose by 1.4 per cent in 2023, surpassing 8.5 billion tonnes for the first time.

It pointed to "very strong" demand for the commodity in emerging and developing economies, increasing by 8 per cent in India and 5 per cent in China in 2023 due to rising demand for electricity and weak hydropower output.

"The growth in China and India as well as in Indonesia, Vietnam and The Philippines – which together represent more than 70 per cent of global coal demand – will more than offset" falls from developed economies shedding the energy source, according to the report.

Still, the IEA forecasts a 2.3 per cent decline in overall global demand in the period through to 2026 as nations boost their renewable volumes and green energy takes hold as the dominant source of power over the next decade.

"We forecast that China's coal consumption will fall in 2024 and plateau through 2026, with hydropower output set to recover while electricity generation from solar and wind increases significantly," the report states.

The pace of that fall remains in some doubt given uncertainty over China's economic stimulus and broader energy strategy.

Australia – one of the top global producers – will see production decline through to 2026, driven by both lower domestic demand and exports.


While the speed of the decline in coal demand remains uncertain, the IEA said 2023 was likely to be the highest point for the fossil fuel.

[Hectorplains]

Absolutely - watching Noontide slowly buy more and they now control the Board

What do you reckon Crackity, Noon Tide have crept to 33 percent, are we looking at a full takeover offer soon or more of the same? 

[Crackity]

What do you reckon Crackity, Noon Tide have crept to 33 percent, are we looking at a full takeover offer soon or more of the same? 

More of the same I reckon - they have the Board they want and it's running lean - still in my bottom drawer waiting patiently for Dukas or some csg developments 🤞

[Hectorplains]

More of the same I reckon - they have the Board they want and it's running lean - still in my bottom drawer waiting patiently for Dukas or some csg developments 🤞

Yup I take mine out periodically to check for signs of mould or mildew, then file it back.  I'd hoped with the register tightening we might start to see some share price appreciation but alas not so...yet.