Good afternoon
and the melt-up continues…!
Equities are stronger again today - metals as well - copper 1% , nickel 2,2% - …the US$ still falling initially, but then stabilizing…so an unchanged picture on Friday from the rest of this week! All these base metal stocks with new highs…Oz MInerals, Lundin, Antofafagasta, First Quantum, Freeport, Hudbay etc etc
Palladium is taking a breather today, but platinum is marching ahead!
Markets are becoming very bullish iron ore for the next year…unless China falls off a cliff! Macquarie sees a shortage of 50 millt ,possibly, next year…FMG/RIO/BHP remain good buying, despite record highs! Kumba, the large South African producer, has cut output guidance also by 1-2 millt for 2021 as well as 2022.
Oil is marching higher as well - 50$ for Brent is coming into sight!
Strike Energy - reports about drill progress today. The well is going the way it should now - all the right ingredients are there for West Erregulla potentially incerasing by anothr 0,5 Tcf….But as always, the prove is in the pudding - the next 3 weeks could be very exciting for holders of Warrego and Strike. The latetr is trading very close to it´s highs, while WGO for whatever reason has problems moving away from it´s placement price of 21ct, and has been very much left behind. Strike have 50% upside potential and WGO 100%…both feel strong!
BHP is at all time highs and probably will need to do some work to go through the 42$-level. But god knows - markets are explosive, and so is iron ore!
OZ Minerals - have completed the ramp-up of their Carapateena project 6 month ahead of schedule…OZL is making a new high today. Australia´s best copper producer!
For my taste, it´s almost becoming too bullish! Some consolidation is needed? But then it seems, that the world is underweight resources! Except for gold - who has been talking about resources stocks recently??
Have a nice weekend
WS