2016 has played host to a significant resource sector rejuvenation. Quality smaller companies have once again been able to raise funding for exploration, appraisal and development activities, markets are reacting positively to favourable company news, and share prices are generally moving in the right direction. The proof of the pudding is in the eating - high-quality smaller companies have significantly outperformed the sector’s heavyweights. Resource behemoths are forced to live with the consequences of poorly-timed project expansions, expensive corporate deals and exposure to the wrong sorts of commodities. Smaller companies by contrast boast management with significant 'hurt money' invested, meaning they are often run on the smell of an oily rag. Smaller independent companies are also much more leveraged to the strongly-performing commodities of 2016. These include gold (up 13%), copper (up 17%), silver (up 18%), nickel (up 27%), cobalt (up 28%), lead (up 34%), crude oil (up 38%), tin (up 42%) and zinc (up 74%) - along with lithium and graphite. The attached graphic represents the outstanding performance of the Australian Small Resources Index so far this year.