Kick Back: The 10 biggest stories you might have missed on Stockhead this week
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The Matildas find their World Cup mojo. Toronto wins the NBA finals. England ruins the cricket.
It’s not even the weekend yet and we’re all sported out. And there are still three more early mornings of US Open to go.
Best to think of something else, like money.
We’ve taken all the boring bits out for the week on Stockhead to bring you this rundown of what made you click, in case you missed it.
You’ll find BHP hunting for Nullarbor treasure, Garimpeiros on the radio, nickel on the moon and RSIs.
You listened. Maybe you even learned last week when we took up far too much space in this column explaining why the list of undervalued stocks doesn’t change anywhere near as much as the overbought list.
We’re not going into it again. If you need to know – here.
As for this week, we had a new leader that buyers perhaps got way too excited about. Monash IVF Group (ASX: MVF) registered an RSI of 85.94, well above the standard 75 which indicates a possibly overbought stock.
Even weirder, it’s come on the back of no announcements since May 24…
Here’s your summary of the other stocks running hot – and cold – for the two weeks ended Friday, June 7.
There is something on the dark side of the moon after all.
Metal. A huge ball of it about five times bigger than Hawaii’s Big Island. That’s near enough to the size of Tasmania, given how these analyses can turn out.
Researchers analysed NASA data to understand why there were subtle changes in the strength of gravity around the Moon and found an “unexpected mass” under the South Pole-Aitken basin.
That’s the largest crater in our solar system, by the way, and now it comes as no surprise. Whatever slammed into it coalesced into a giant molten ball of nickel.
The gravity of that ball alone has dragged the basin down several kilometres above it.
Worried you’d missed the iron ore gravy train? S&P Global says maybe it’s not too late.
It’s noted the seaborne iron ore market will record an even bigger deficit this year than previously thought – which should keep prices higher for longer.
But first, this is what a good year for a commodity looks like:
Surely, a cliff beckons?
Except S&P data shows Vale’s Brazilian exports fell 33.8 per cent year-on-year in March to their lowest point since 2014. And it’s still got nine more dams to proof against collapse risks to avoid a repeat of the 2019 tragedy.
Australian miners are also expected to produce 16 million fewer tonnes than in 2019.
Across several plants, Graphite India produces about 100,000 tonnes a year. Or did produce about 100,000 tonnes of graphite a year, until it was told to stop producing about 80 per cent of that.
Like China, India has started shutting down polluting operations, and Graphite India got the latest knife.
And given you need more graphite in a lithium-ion battery than you do actual lithium, it’s starting to look like a good time to be a (clean) graphite producer.
In fact, Roskill sees demand for graphite in battery applications growing by 17-23 per cent each year between 2017 and 2027.
Psst. Wanna buy some gold?
Course you do.
Obviously, before August last year would have been a better time to get into gold – last week the price punched through the $1900 a mark in Aussie dollar terms. That’s nearly an 18 per cent swing up since August last year.
But Davide Bosio, CEO and head of corporate finance at DJ Carmichael, says there’s still plenty of upside for small cap explorers, because the big fish are “sitting on a lot of cash” right now.
“And anyone who is building strong resources and reserves are in the hot seat, because at some point these bigger companies are just going to want to buy to replace their ounces. They’ll just be eyeing these assets,” he says.
Tolga Kumova has a key investment principle – find junior companies with likely world-class assets which have been overlooked by the market.
He drives a very nice Ferrari. And tells a great story about how he started on his path by losing his dad’s $250,000 life savings in a bad investment.
Kumova’s form sheet has improved a lot since then, topped by turning $10m Syrah Resources in 2011 into a $360m company.
And in a fireside chat with Barry FitzGerald, Kumova told him why he thinks his Cameroon bauxite venture, Canyon Resources, can repeat Syrah’s success.
You know Kumova’s going to give it everything he’s got, because the deal in which he became a “strategic adviser” to Canyon also saw him buy shares in the company and take up a truckload of options.
Options that are success dependent in that they have exercise prices ranging from 35c to $1.
Speaking of fireside chats with the legendary Garimpeiro, Barry FitzGerald now has a podcast.
Barry and Friends The Explorers Podcast with Barry FitzGerald and the first guest was Scott Williamson, managing director of Blackstone Minerals (ASX:BSX).
The pair waffle about Scott’s early years in the industry, the ins and outs of social media for resources juniors, battery metals pricing and much more.
You’ll laugh, you’ll cry. It’ll give you something decent to do with your commute. Tune in below:
The money’s slowly coming back for lithium.
Research shows cash inflows into ASX-listed juniors increased for the first time in the March quarter since June last year.
BDO’s Sherif Andrawes said of the $98 million in inflows, $154 million went to lithium exploration companies. That’s more than double what was raised last quarter.
Bigger news is the London Metals Exchange wants to be able to take lithium pricing seriously.
It announced it will partner with price reporting agency Fastmarkets to launch a new lithium futures contract.
Exchange traded lithium is a big deal, because it will lead to deeper liquidity on the spot market and clearer pricing. That means larger lenders — like banks — are more comfortable investing in new mining and processing operations.
Woo. Here’s a mystery, maybe.
All of a sudden, BHP’s WA-based nickel division, Nickel West isn’t for sale any more.
That in itself isn’t surprising though, because nickel is kind of a big deal again.
But not only is Nickel West a thing again for BHP, it’s quietly picked up a massive amount of ground in the unknown and untouched Madura Province on the Nullarbor Plain, about 500km east of Kalgoorlie.
They call it “Seahorse”. This is why:
Talk to any geologist and they’ll tell you there’s virtually nothing of interest there…yet. It’s on the edge of the world’s largest single exposure of limestone bedrock.
As always when BHP or Rio Tinto look like they’re onto something big, it’s time to look at the Seahorse nearology plays.
And finally, it really is time to go large.
“Globesity” is an “expanding opportunity”, said Swiss bank Julian Baer this month, showing us what it did there.
There are now three times more obese and overweight people in the world than in 1980 and investors should be taking note, it said.
We’ve currently got 22 ASX small caps on our list that operate in the “wellness” sector, but to be honest, they’re an underperforming lot as a whole over the past year.
At least they’re going cheap.
But in the US, the Nasdaq-listed ETF SLIM is up 41 per cent over the last three years. Best – it includes two Aussies in its 42 stocks and currencies.
That’ll do pigs. That’ll do.
Enjoy your weekends, and thanks for being a bunch of Stockheads.