The latest market news, commentary and strategy by Adrian Rowney
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5 Things that Grabbed my Attention
1. RBA kept interest rates on HOLD....Most bank economist are predicting the RBA to stay on HOLD all next year, but I think they will hike again.
2. Lithium crash continues but a violent bounce is probably not too far off.....With prices collapsing below the cost of production at many lithium mines, there is a good chance AUTOS will take advantage and start building meaningful stockpiles for the future.
3. After dumping 180 million barrels of OIL last year from the nation's Strategic Petroleum Reserve, the Biden Administration plans on buying some of it back....Good luck not pushing prices through the roof (or maybe that is the plan to coerce people into EVs!)
4. Evolution (EVN) is buying an 80% stake in the Northparkes Copper-Gold Mine in NSW from CMOC Group for around US$475 mil. The price is very cheap because it comes with a liability to payout about $550 worth of gold and silver to a financing company over the coming years. Sort of a complex deal, but the mine has a 30 year life. EVN will make plenty from the COPPER and the deal is cash flow positive from day 1....Retail shareholders will get offered to buy up to $30K worth of news shares @ $3.80.
5. We heard from Reuters the other day that the ENERGY CRISIS in Europe is OVER...now the UK Deputy PM is warning Brits to stock up on candles and torches is case of power cuts. CLOWN WORLD.
ASX Market Update
ASX 200 down 63 points to 7061
Lithium producers got absolutely belted on the ASX as prices of the battery metal continued to plunge in China. Below is a list of the 5 worst performers in the ASX 200 - CMM is a GOLD miner, the other 4 are in lithium....
PLS and IGO will remain profitable through the cycle and is likely to mop up some bargains in the future.
CXO is now paying for privilege of selling its LITHIUM to the Chinese so would be desperate for a bounce in prices in order to survive.
LTR is developing a giant mine which is probably looking a bit dicey based on current pricing but does have Gina Rinehart as a major shareholder. Gina bought $1.3bn worth of LTR @ around $3 per share in September. So @ $1.23 she is already down a cool $767 mil on paper.
COPPER prices are destined to explode higher one day....
When copper prices skyrocket, chaos will also break out in many parts of the world as people will be out stripping the stuff left right and center - electricity grid failure will occur...South Africa gives us a glimpse into the future.....Nothing is being done to prepare the world for the great copper shortage. In fact the ESTABLISHMENT is setting us up for it as they go about trying to electrify everything while knowing full well there is not nearly enough copper to go around.
#Laugh all you like and say gee Adrian that is just a crazy conspiracy you are projecting...I sincerely hope that I'm wrong - but by 2028 the copper shortage looks so massive that the pending crisis will be unavoidable. BUY WIRE - great investment for everyone's SUPER!
The Day Ahead
- Our SPI is up 32 points
- Bitcoin up 5.44% to $44,093
- BHP in US down 0.4%
- Newmont down 1.6%
- Block Inc in US down 0.17%
Movements affecting our resource stocks today (USD)
- Gold down 0.22% to $2037
- Paper Silver down 1.59% to $24.51
- Platinum down 2.23% to $904
- Copper down 1.3% to $3.78
- Brent Crude down 1.23% to $77.08
- Iron ore FLAT @ $128.80
Asian Market Update
Japan down 1.3%, China down 1.6% and Hong Kong down 1.9%
A big bounce in LITHIUM is coming in my view....Announcements of mine closures and projects getting mothballed could be one catalyst. Another is AUTOS deciding to stockpile for the future.
Massive selloff in #China's #lithium carbonate futures continues.
Most-traded Jan 2024 contract tumbled up to 6.5% to hit new record low.
Other contracts, for Feb - Aug 2024 delivery, are slumping 8% - 10%https://t.co/haGgRmRhhd https://t.co/97Snq5HWhU pic.twitter.com/iRh5w4UsLx
— YUAN TALKS (@YuanTalks) December 5, 2023
Also interesting to note that Hyundai & KIA are full steam ahead....
Global Market Update
DOW down 79 points to 36,124
ZEROHEDGE just reported that US stock buybacks hit a record high in November....I guess that all makes sense about why last month was a strong one.
Germans up 0.78%, Brits down 0.31% and Frenchies put on 0.74%
Isn't that nice of him to give everyone the heads up of their plans...
Meanwhile, the ELITES across the world have been preparing by fitting out their mega mansions with diesel generators!
Key Market Summary