Hey hey! May is bringing even more buzz to the ‘copper revival’. Building upon what we saw during April, the red metal even generated an arbitrage opportunity between two different markets as Comex traded at a premium versus the comparable LME contract.
Insane!
The metal looks poised to close with some red days, but overall, a strong month.
Last month we also wrote about the expected new wave of M&A and the BHP-Anglo saga. We expect lots more before 2024 is done.
Of course, no one is surprised to see that the story here is not finished as a second and third bid were rejected (completely expected given both still carried an uncomfortable condition for Anglo, divestment of their platinum, iron ore and other assets). But on the plus side, Anglo announced a strategic review that proposes to restructure its portfolio and divest some of the ‘less appealing’ operations, and above all, is now ready to sit at the negotiating table.
Gold continues to enjoy a great run (its role as haven seems pretty safe, pun intended), and analysts believe it has room to soar even higher. Timely, the In Gold We Trust report was released and is a great read for anyone looking to expand their understanding (and portfolio exposure) of the precious metal.
Earlier this month we attended the RIU conference in Sydney. Over 50% of exhibitors were focused on gold, which is rarely shocking for Australia. But this was a surprise: I met in person with 2 new companies with operations in Argentina, Greenwing and Belararox (that hasn’t happened in a while). Perhaps many more people are following Musk’s advice?
FYI, we are actively seeking acquisition targets in the country, if you happen to know of any. You can submit yours for review here.
Lithium continues to underperform but is now off lows, so it seems the expectation that we had reached the bottom was right. As I’ve said before, patience is crucial here as the long-term bull case remains. To weather the storm, lithium miners are resorting to auctions to better reflect market dynamics.
Meanwhile…
Here’s what you may have missed on this blog
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