Gavin Wendt

Someone famously once said, “The best qualification of a prophet is to have a good memory.” When trying to identify potential opportunities within the resource sector, it’s always handy to have some grasp of history. In the case of our vanadium call about 12 months ago, we utilised our awareness... Show More

Gavin Wendt

Given recent headlines and speculation with respect to commodity prices, I thought it worthwhile to outline my views on the near-term picture. Overall, I remain very optimistic with respect to prices and demand. In particular, recent positive Chinese commodity demand data and outcomes from the recent Chinese Communist Party Congress,... Show More

Gavin Wendt

Commodity prices have defied pessimism and rallied solidly over recent months on the back of improved Chinese economic prospects, stability on the European political front, some degree of acclimatisation to Trump-related government volatility in the USA - and a weaker US dollar. Show More

Gavin Wendt

It's worth reflecting upon the staggering level of international debt. Financial crises are invariably caused by debt. The Bank of International Settlement (BIS) has recently warned that a new financial crisis is looming. Part of this is simply its job and it's routinely warning against this. But it does have... Show More

Gavin Wendt

Gold’s best friends at present are the US Federal Reserve and Donald Trump. The US dollar is weakening as the opposition of two more Republican senators to the US healthcare bill this week meant the measure is effectively dead in its current form. Show More

Gavin Wendt

Anyone even remotely associated with the resource sector is well acquainted with the concept of patience. One interesting quote that probably sums up what’s required is as follows: “Patience is not the ability to wait, but the ability to keep a good attitude while waiting.” Nowhere is this more relevant... Show More

Gavin Wendt

Despite the skeptics, OPEC is doing exactly what it said it would do – which was to dramatically rein in oil production. Global oil output plunged during January as OPEC and non-OPEC producers curbed supply to accelerate a market rebalancing, according to the International Energy Agency (IEA). Oil supplies fell... Show More

Gavin Wendt

It’s worthwhile reflecting on the impact of Donald Trump’s election victory on commodities so far. In the immediate aftermath, we witnessed a surge in commodity prices pretty much across the board, with the obvious exception of gold – viewed by some as a likely laggard investment in the growth-fuelled Trump... Show More

Hi Joe, the bottom line is that there is a growing number of ASX-listed vanadium opportunities in the micro-cap space. There are risks associated with all of these companies, not so much in terms of their resource, but more to do with how their projects will ultimately be funded and where the vanadium (if it's mined), will end up. Furthermore, some companies like AVL are quite advanced in terms of a vertically-integrated strategy, as well as discussions with end-user groups of various types. Others aren't so well advanced. Some companies also promote themselves better than others too. It's a market, so there's always a discrepancy in respective values.

On 3 microcaps with energy to burn -

Hi Paul, the Triton story is an interesting story, but they have had their fair share of issues over recent years, but are looking to turn things around under new leadership.

On 3 microcaps with energy to burn -

Largo Resources is a TSX-listed vanadium producer with a market cap of $1.6b. My research focuses only on ASX-listed juniors, typically with a market value under $100m with emerging projects. Largo has performed very well share price wise, so it's story is being well received in North America.

On 3 microcaps with energy to burn -

The just commenced drilling program at the Obelisk prospect in WA will be well worth watching.

On Sipa - Delivering the goods -

Hi Alex, it's an important commodity that's lived in the shadow of graphite, lithium, vanadium for some time. A lot of it is produced as a by-product from copper and nickel operations, whilst there are a few dedicated cobalt operations - but typically in higher sovereign risk places like Uganda.

On The Trump Factor - Commodity Scorecard So Far -

Hi Alex, it seems to be pretty much related to a strong market move in all actual uranium-producing stocks, including ERA for example on the domestic market, plus a host of overseas players. You're right re uranium - no one will believe it until they see it - it's been in the doghouse for so long.

On Three Junior Equities Benefitting from Uranium's Recovery -

Orion is a great story - especially given how relatively advanced things are, but still with a lot of exploration upside. I believe the MD Errol Smart is presenting at Africa Down Under on Thursday.

On Orion acquiring exposure to quality zinc assets -

I agree to some extent with your near-term forecast. Nothing goes up in a straight line and the likelihood always was that Brexit wasn't going to be as scary for markets as the pessimists made out. However, whilst traders might look to exit or reduce gold positions near-term, I think any pullbacks will be viewed as a buying opportunity by longer-term investors. With interest rates likely to stay low (at zero or even negative levels) then gold will perform solidly.

On US dollar and receding Brexit fears place pressure on gold. Gold stocks are a short-term sell. -

It reminds me of all the hullabaloo surrounding ‘The Y2K bug’ – lots of hysteria at first, but in the end it all passed without any lasting consequences....a storm in a teacup ultimately....

On Does Brexit matter? -

Thank you for your kind words Patrick. Yes, it's important to distinguish between the commodities and their various outlooks. The big picture for most commodities looks quite positive, but the bulks are a different story.

On Base Metals Outlook - Is the Worst Behind Us? -

James, the deposits at Yamarna are likely to be large, so there will be the economies of scale necessary for a remote project like this. Bear in mind though that there are different scales of remote - we're not talking about deepest, darkest Africa here. I believe GOR will initially announce a Gruyere resource of between 1.5M - 2.0M oz grading 1.1g/t - 1.5g/t Au, which in turn could potentially support a 150,000 oz p.a. production scenario. The key here is scale and it's likely that this will end up being a +5Moz gold belt. The company already has Sumitomo as a JV partner, so in effect it already has a major on board for half its project.

On Gold Road (ASX:GOR) up 2c to 22c following yesterday's commentary after today releasing further outstanding results -

Not just Japan but the world over, easy money from central banks has spurred record sharemarkets and over-valued property, as speculators chase returns. The innocent victims being left behind are the mums and dads that did the right thing and saved and put their money into the bank. The scary stat out of the US is that it's taken $5 of stimulus to generate $1 of growth.

On There are no one-way bets in global finance, but Japan's stock market comes close -

Interesting reading and thanks for sharing. A significant proportion of shale oil production in the US is economic only if base-case oil prices remain high. It's certainly added to production volumes but it requires a robust price to be viable. Predictions in some quarters of oil prices falling to $60 or even $40 a barrel won't happen.

On The oil price spike of 2008, as economic theory would suggest, has delivered a supply response: US shale has been significant, proven oil reserves (globally)... -

James, Jameson Resources appears to be very well run and importantly its projects are coking coal (not thermal coal), so hence more attractive from a price and market perspective. The projects are also close to essential infrastructure, which is a huge plus for any bulk commodity project - and this sets it apart from most of its peers. Lots of project activity too which should help drive market interest.

On My preferred emerging exploration plays from Resources Rising Stars on the Gold Coast last week are FAR and Jameson... -