Which way? Metals
- Thread starter themickey
- Start date
Could be. Gold is a devil to trade, here's a quarterly period chart going back ~16 years.
Senior gold miners ETF, very difficult to eke out a living on this.
Compared to for example QQQ.....
Automated Rio Tinto iron ore train derails in WA
ABC Pilbara / By Tom Robinson and Charlie McLean
Posted 6h ago
The automated Rio Tinto iron ore train derailed 80 kilometres from Karratha.(Charlie McLean)
Mining giant Rio Tinto said an autonomous train hit a set of stationary wagons about 80 kilometres outside Karratha.
A Rio Tinto spokesperson said the incident occurred just after midnight and that 22 wagons and three locomotives were impacted.
"There were no people within the vicinity of the incident and no injuries," the spokesperson said.
"We have notified the appropriate regulators and commenced an investigation.
"Work will soon begin to clear the rail line."
The train crashed near Karratha in the early hours of Monday morning.(ABC Pilbara: Charlie McLean)
The Office of the National Rail Safety Regulator (ONRSR) said it received a report about a collision between a loaded ore train and a recovery train.
"The recovery train is reported to have collided with the ore train it was sent to recover after it was disabled by a mechanical failure," a spokesman said in a statement.
"ONRSR is investigating the incident and will be making a series of enquiries.
"At this stage these are focused on the operation of and adherence to signalling systems in the area."
The national rail safety regulator is investigating the crash.(Supplied: Western Mine Workers Alliance)
It is the second Rio Tinto derailment in the Pilbara this year.
An empty autonomous train left the tracks about 120km from Dampier in February.
It also follows another derailment of one of the miner's autonomous train in June last year.
ABC Pilbara / By Tom Robinson and Charlie McLean
Posted 6h ago
The automated Rio Tinto iron ore train derailed 80 kilometres from Karratha.(Charlie McLean)
- In short: The driverless train, operated by mining giant Rio Tinto, derailed just after midnight on Monday.
- The company says no workers were in the area.
- What's next? Rio Tinto says it will cooperate with authorities as the crash is investigated.
Mining giant Rio Tinto said an autonomous train hit a set of stationary wagons about 80 kilometres outside Karratha.
A Rio Tinto spokesperson said the incident occurred just after midnight and that 22 wagons and three locomotives were impacted.
"There were no people within the vicinity of the incident and no injuries," the spokesperson said.
"We have notified the appropriate regulators and commenced an investigation.
"Work will soon begin to clear the rail line."
The train crashed near Karratha in the early hours of Monday morning.(ABC Pilbara: Charlie McLean)
The Office of the National Rail Safety Regulator (ONRSR) said it received a report about a collision between a loaded ore train and a recovery train.
"The recovery train is reported to have collided with the ore train it was sent to recover after it was disabled by a mechanical failure," a spokesman said in a statement.
"ONRSR is investigating the incident and will be making a series of enquiries.
"At this stage these are focused on the operation of and adherence to signalling systems in the area."
The national rail safety regulator is investigating the crash.(Supplied: Western Mine Workers Alliance)
It is the second Rio Tinto derailment in the Pilbara this year.
An empty autonomous train left the tracks about 120km from Dampier in February.
It also follows another derailment of one of the miner's autonomous train in June last year.
The mining stocks fundies think may outrun BHP and Rio
Alex Gluyas Markets reporter Jul 10, 2024
https://www.afr.com/markets/commodi...-think-may-outrun-bhp-and-rio-20240709-p5js7k
A rout in Australia’s largest mining companies has created a significant buying opportunity according to some of the biggest investors in the sector, who are looking beyond iron ore for the next leg of returns.
Resources stocks on the ASX 200 sank 11.1 per cent in the first six months of this year after a rally in base metals in April and May rapidly unwound in June as traders took profits and strategists questioned whether prices had detached from their fundamentals.
Tribeca’s Ben Cleary, David Franklyn from Argonaut, Sam Berridge from Perrenial, and Matt Langsford from Terra Capital. AFR
The correction in metal prices weighed heavily on Australia’s sharemarket, which has lagged other major equity markets all year because of its heavy exposure to the resources sector.
It also erased millions of dollars in market value from Australia’s largest mining companies – including BHP, which has tumbled 14.1 per cent this year. Shares in Rio Tinto have lost 11.7 per cent, Fortescue has slumped 25.4 per cent and Mineral Resources has dived 20.7 per cent.
The rout in mining stocks means resource-focused fund managers are now looking beyond the historically reliable returns of the iron ore majors, and are instead beefing up their holdings in a new generation of stocks.
“Resources equities are just screaming value,” said Ben Cleary, portfolio manager of Tribeca’s Global Natural Resources Fund. “While I think rate cuts are on the horizon, they aren’t necessarily needed for the commodities equities to perform strongly in the second half, but it’ll certainly help.”
While copper prices have corrected from their all-time highs above $US11,000 a tonne earlier this year, Mr Cleary is still bullish on the metal and thinks prices will need to surge again to incentivise enough supply to meet the booming demand.
Tribeca’s resources fund holds major producers Sandfire Resources, Metals Acquisition and Capstone Copper. Argonaut’s Natural Resources Fund is also bullish on copper, with positions in Sandfire and Metals Acquisition, along with developer Firefly Resources.
How to play lithium
While many fund managers are avoiding the lithium sector after a collapse in prices for the battery metal, Janus Henderson believes the sector is now a buying opportunity.
Darko Kuzmanovic, senior portfolio manager of the firm’s Global Natural Resources Fund, has been buying more shares in Mineral Resources and Pilbara Minerals in the first half on signs that electric vehicle sales in China are increasing.
“Lithium could be a surprise into the end of 2024, as lithium equities are trading at levels that imply the whole EV transition is over,” he said.
Janus Henderson believes the fundamentals for many commodities remain robust, with tight supply driving copper, manganese and hard coking coal prices, and strong demand fuelling silver, gold, lithium, natural gas and uranium.
“The groundwork is set for a strong rebound in resources equities and commodity prices over the next few months into year’s end,” Mr Kuzmanovic said.
David Franklyn, portfolio manager of Argonaut’s Natural Resources Fund,
is playing the lithium rout a little differently, and is instead sticking to small positions in emerging stocks such as Patriot Battery Metals and Latin Resources.
Golden opportunity
He’s avoiding the major producers altogether, given the collapse in prices is likely to weigh on their upcoming results. “June really was capitulation for the lithium sector, so we’re still cautious,” he said.
Mr Franklyn is also continuing to back gold. While he’s keeping an eye on China’s dwindling appetite for the precious metal, given that prices are near record highs, he believes geopolitical tensions enhance its safe-haven appeal.
Argonaut owns shares in Gold Road Resources, Northern Star Resources and Evolution Mining.
Perth-based Perennial Partners also likes gold, as traders ramp up US interest rate cut bets and markets brace for a Donald Trump victory in the US presidential election, which could weigh on the US dollar.
Gold producer Ora Banda is the largest holding in Perennial’s Natural Resources Fund.
While gold stocks have materially underperformed the spot price of the precious metal due to escalating costs, Terra Capital is tipping that gap to close imminently, which should benefit Resolute Mining.
“We’re heading into what should be strong quarterly results margin-wise and a seasonally strong period for the gold price from now until the end of the year,” portfolio manager Matthew Langsford said.
Terra is also bullish on uranium prices heading into major producer Kazatomprom’s first-half results and 2025 guidance, which will be released next month. The firm likes NexGen Energy in that space.
Coal watch
“Industry supply/demand dynamics continue to look extremely attractive to us,” Mr Langsford said. “We believe that achieving a net-zero scenario can be realised with the utilisation of nuclear power.”
Tribeca’s Ben Cleary also likes uranium and owns shares in Boss Energy and Lotus Resources.
In the energy space, Perennial portfolio manager Sam Berridge is betting that the looming gas shortage in Victoria will benefit Cooper Energy, which is his fund’s second-largest holding.
“Cooper is the only means of exposure to gas production in Victoria, which is where the gas needs to be produced,” he said. “And they have growth assets there which the market sorely needs.”
Finally, Argonaut’s Mr Franklyn is watching metallurgical coal following the recent fire at Anglo-American’s Grosvenor mine in Queensland, which has further disrupted supply of the commodity.
“There’s a few signals that global production is going to be curtailed and demand is firm, so it’s come out of the doldrums,” he said.
Alex Gluyas Markets reporter Jul 10, 2024
https://www.afr.com/markets/commodi...-think-may-outrun-bhp-and-rio-20240709-p5js7k
A rout in Australia’s largest mining companies has created a significant buying opportunity according to some of the biggest investors in the sector, who are looking beyond iron ore for the next leg of returns.
Resources stocks on the ASX 200 sank 11.1 per cent in the first six months of this year after a rally in base metals in April and May rapidly unwound in June as traders took profits and strategists questioned whether prices had detached from their fundamentals.
Tribeca’s Ben Cleary, David Franklyn from Argonaut, Sam Berridge from Perrenial, and Matt Langsford from Terra Capital. AFR
The correction in metal prices weighed heavily on Australia’s sharemarket, which has lagged other major equity markets all year because of its heavy exposure to the resources sector.
It also erased millions of dollars in market value from Australia’s largest mining companies – including BHP, which has tumbled 14.1 per cent this year. Shares in Rio Tinto have lost 11.7 per cent, Fortescue has slumped 25.4 per cent and Mineral Resources has dived 20.7 per cent.
The rout in mining stocks means resource-focused fund managers are now looking beyond the historically reliable returns of the iron ore majors, and are instead beefing up their holdings in a new generation of stocks.
“Resources equities are just screaming value,” said Ben Cleary, portfolio manager of Tribeca’s Global Natural Resources Fund. “While I think rate cuts are on the horizon, they aren’t necessarily needed for the commodities equities to perform strongly in the second half, but it’ll certainly help.”
While copper prices have corrected from their all-time highs above $US11,000 a tonne earlier this year, Mr Cleary is still bullish on the metal and thinks prices will need to surge again to incentivise enough supply to meet the booming demand.
Tribeca’s resources fund holds major producers Sandfire Resources, Metals Acquisition and Capstone Copper. Argonaut’s Natural Resources Fund is also bullish on copper, with positions in Sandfire and Metals Acquisition, along with developer Firefly Resources.
How to play lithium
While many fund managers are avoiding the lithium sector after a collapse in prices for the battery metal, Janus Henderson believes the sector is now a buying opportunity.
Darko Kuzmanovic, senior portfolio manager of the firm’s Global Natural Resources Fund, has been buying more shares in Mineral Resources and Pilbara Minerals in the first half on signs that electric vehicle sales in China are increasing.
“Lithium could be a surprise into the end of 2024, as lithium equities are trading at levels that imply the whole EV transition is over,” he said.
Janus Henderson believes the fundamentals for many commodities remain robust, with tight supply driving copper, manganese and hard coking coal prices, and strong demand fuelling silver, gold, lithium, natural gas and uranium.
“The groundwork is set for a strong rebound in resources equities and commodity prices over the next few months into year’s end,” Mr Kuzmanovic said.
David Franklyn, portfolio manager of Argonaut’s Natural Resources Fund,
is playing the lithium rout a little differently, and is instead sticking to small positions in emerging stocks such as Patriot Battery Metals and Latin Resources.
Golden opportunity
He’s avoiding the major producers altogether, given the collapse in prices is likely to weigh on their upcoming results. “June really was capitulation for the lithium sector, so we’re still cautious,” he said.
Mr Franklyn is also continuing to back gold. While he’s keeping an eye on China’s dwindling appetite for the precious metal, given that prices are near record highs, he believes geopolitical tensions enhance its safe-haven appeal.
Argonaut owns shares in Gold Road Resources, Northern Star Resources and Evolution Mining.
Perth-based Perennial Partners also likes gold, as traders ramp up US interest rate cut bets and markets brace for a Donald Trump victory in the US presidential election, which could weigh on the US dollar.
Gold producer Ora Banda is the largest holding in Perennial’s Natural Resources Fund.
While gold stocks have materially underperformed the spot price of the precious metal due to escalating costs, Terra Capital is tipping that gap to close imminently, which should benefit Resolute Mining.
“We’re heading into what should be strong quarterly results margin-wise and a seasonally strong period for the gold price from now until the end of the year,” portfolio manager Matthew Langsford said.
Terra is also bullish on uranium prices heading into major producer Kazatomprom’s first-half results and 2025 guidance, which will be released next month. The firm likes NexGen Energy in that space.
Coal watch
“Industry supply/demand dynamics continue to look extremely attractive to us,” Mr Langsford said. “We believe that achieving a net-zero scenario can be realised with the utilisation of nuclear power.”
Tribeca’s Ben Cleary also likes uranium and owns shares in Boss Energy and Lotus Resources.
In the energy space, Perennial portfolio manager Sam Berridge is betting that the looming gas shortage in Victoria will benefit Cooper Energy, which is his fund’s second-largest holding.
“Cooper is the only means of exposure to gas production in Victoria, which is where the gas needs to be produced,” he said. “And they have growth assets there which the market sorely needs.”
Finally, Argonaut’s Mr Franklyn is watching metallurgical coal following the recent fire at Anglo-American’s Grosvenor mine in Queensland, which has further disrupted supply of the commodity.
“There’s a few signals that global production is going to be curtailed and demand is firm, so it’s come out of the doldrums,” he said.