The latest market news, commentary and strategy by Adrian Rowney
5 Things that Grabbed my Attention
1. Japan has official entered a recession after posting back to back quarters of negative economic growth….You wouldn’t think by looking at it’s booming stock market.
2. From what I can gather – the CHINESE are currently buying and stockpiling GRAPHITE, LITHIUM, SILVER, PLATINUM, & PALLADIUM below average mining industry production costs.….Too Good Xi Man.
3. Former Suharto era military strongman, Prabowo Subianto has claimed victory to become Indonesia’s next President…..A great win for overseas Chinese businessmen operating in the country (I explain why in Asian Market Update).
4. Big time fund manager, Stanley Druckenmiller has sold some of his TECH holding and bought the world’s two biggest GOLD miners – Newmont and Barrick.
5. Nickel mining is basically OVER in Australia as BHP wrote down the value of its operations by US$3.5bn….It now values it’s WA Nickel @ negative US$300 million due to costs with closures and land rehabilitation.
ASX Market Update
ASX 200 up 58 to 7605
With the large pullback in the price of THERMAL COAL, Whitehaven (WHC) reported a first half (H1) Net Profit of $372 mil which was down 86%….Out of the 32c in earnings per share, the company will be paying just 7c of it as a dividend. WHC fell 5% on the news…..(Woke NSW Premier Chris Minns is going to go hunting for a fresh revenue source and I dare say it will come from property)
Here are two interesting slides from the presso…
Check out how important WHC is for these countries. WOW!!!
And have a close look at this…
WHC shares might not do much in the short term and could even fall further, but the longer term fundamentals are nothing short of sensational…..In the years to come we will see surging demand and falling supply! Maintain BUY
Random Observation
China must be just loving it as they look set to buy even more LITHIUM off Australia at below cost of production….Yes you got that right – Wesfarmers (WES) will be the latest miner paying for the privilege of selling them LITHIUM in the next few months.
From what I can gather – the CHINESE are currently buying and stockpiling GRAPHITE, LITHIUM, SILVER, PLATINUM, & PALLADIUM below industry production costs.
The Day Ahead
- SPI is up 64 points
- Bitcoin up 0.5% to $52,053
- BHP in US down 0.24%
- Newmont in US up 3.3%
- RIO in London up 0.83%
Movements affecting our resource stocks today (USD)
- Gold up 0.6% to $2016
- Paper Silver up 2.6% to $22.97
- Platinum up 1% to $906
- Copper up 1.5% to $3.75
- Brent Crude up 1.65% to $82.65
Asian Market Update
Japan down 0.89%, Hong Kong up 0.84%, China SHUT
Overseas Chinese operating in Indonesia will be the big winners with Prabowo Subianto becoming President…Former President Suharto used to promote Chinese businessman ahead of indigenous Indonesians as they could never turn into political opponents and are more than happy to grease the palms of the establishment. Prabowo will run the same model….As for Aussies trying to crack it in Indo….hahaha… GOOD LUCK…. the probability of failure remains extremely high – YOU WILL BE SCREWED AT EVERY TURN…I maintain my blanket AVOID on all ASX companies with a heavy exposure to the country.
Prabowo definitely softened his imagine while campaigning….but this dude is the real deal. NO ONE ever messes with him. Prabowo is untouchable…..I can’t imagine what he has seen and done over the years….. Goodness gracious me!
Global Market Update
US Market
DOW up 348 points to 38,773
Tucker is crushing the Mainstream Media in the US and around the world for that matter as even his most basic stories are waking people up to what is really going on…..I have an AVOID on our gaslighting ASX media companies, SEVEN (SWM) and Nine (NEC) and if I could SHORT the ABC I would!
European Markets
Germans up 0.6%, Brits added 0.38% and Frenchies put on 0.86%
UK officially entered a recession and with inflation running at 4% we now see nasty STAGFLATION…..Why is no one talking about STAGFLATION???….I think it is because STAGFLATION is a nightmare for bankers and history shows it is a bonanza for PRECIOUS METALS (their kryptonite).
