‘Junism’ and economic cycles h commodity prices

Junior miners are ruing ‘Junism’. They are largely yet to recover from the ‘sell’ sentiment that hits just before the end of financial year as shareholders off-load to realise losses. This year it was complicated with cycles that are set in the mindset and market and can be banked upon to have some inertia said managing director of Brisbane-based Superior Resources, Peter Hwang. Superior Resources has been active including drilling copper projects near Greenvale north west of Charters Towers. They also have the Nicholson and Victor projects north west of Mount Isa. Just to complicate things, there are other factors which he calls ‘global ambitions and interests’ that may reset and reshape future cycles said Mr Hwang. Related: Superior gets the drills spinning at Greenvale Major market disruptions had become focused this year as shares in junior gold stocks failed to reflect the strong price for the metal said Mr Hwang. “Yes across the board, generally speaking, the markets have been difficult to predict. The markets have followed trends that are difficult to predict globally as well. Managing director Superior Resources Peter Hwang “It is frustrating to see that we have a very, very heightened record gold price and lack-luster response on the markets here, at least on the domestic market.” Reports from the Australian Bureau of Statistics (ABS) of a 20 percent dollar drop in gold exploration investment in the year to March were not surprising said Mr Hwang. The ABS statistics showing an increase in ‘other’ exploration including critical minerals reflected Mr Hwang’s sentiments the market was following explorers in the renewables and EV sectors, he said. “Together with that is at the very moment there's been a very hot market in terms of the lithium explorers,” he said. “So I think the general market's contracted certainly this year, and, it’s partly explained at least by a diversion of a more limited pool of funds towards lithium and a couple of others.” Copper prices struggling The copper sector also struggled to meet its promise in front of a long touted market demand upswing said Mr Hwang. “When it comes to copper exploration, particularly with the big tier-one potential projects, they do take commitment. They do take time and the patience in the market is currently not there. However, we expect it to improve later this year. “No matter which way you look at it and no matter what your opinion is about what's driving copper, the global ambitions for net zero (carbon) targets, the most fundamental commodity is copper. “And that's irrespective of, of what battery technology and what energy storage and energy transportation technology will be the ultimate technology. One thing's for sure is that copper is fundamental for the achievement of current global ambitions.” “We at Superior Resources, we certainly do have a fundamental belief in copper. We have a current focus on copper and we are building our inventory and our portfolio in the copper space. So we are waiting for the tide to turn.”

‘Junism’ and economic cycles h commodity prices

Industry Queensland

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