Ground Breakers: Luck runs out for the big boys but Core Lithium hits new all time high
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The luck has run out for the big boys as dips in major commodities iron ore, copper, gold and aluminium came off overnight.
It saw the materials sector, up 4.75% for the week, dip 0.35% along amid a generally weak day for the ASX 200.
It ends a big upswing powered by rising commodity prices facing supply disruptions like floods in Brazil (iron ore) and potential strikes at mines (copper).
BHP’s performance will be watched closely ahead of a vote on unification of the separate British and Australian companies it has operated since BHP took over Billiton in the early 2000s.
It stands to make up 10% of the ASX 200 if the motion passes the 75% threshold required to succeed, a move that will prompt buying from index linked active and passive funds.
Nickel prices rose again overnight to extend 11 year highs to US$22,300/t amid stainless steel shortages and increased demand for nickel in batteries.
With a lot of the price rises already spurring nickel stocks to multi-year or all time highs only IGO (ASX:IGO) was significantly in the green.
Core Lithium (ASX:CXO) is one of the few lithium miners with an operation expected to come into production this year, a big deal given the massive supply deficit emerging in the lithium space.
Core shares were up 12.4% this morning on no news, rising above 90c for the first time.
Given the company has its head down building its Finniss lithium mine in the NT, the first in Oz outside of WA, the radical buying of its stock this month has been noteworthy and revealing into investors’ enthusiasm for the energy metal.
Investors did exercise 1,541,970 unquoted options at 45c a share, the company revealed today. Lucky them.
Core began construction of Finniss in October last year, with 80% of its production sold under four year deals to Chinese lithium giants Ganfeng and Yahua.
The $89 million mine is expected to hit first production in the December quarter, producing at a rate of 175,000tpa.