Resource Sector Strategy – Weekly Investment Report

The commentary in the PortfolioDirect weekly investment report continues to highlight the deteriorating cyclical position confronting the resources sector as prospects of a global growth acceleration appear to diminish. The forecast duration of the current cycle has been revised to take account of the less supportive macro landscape. Impact Minerals (IPT:AU) which has been the subject of a PortfolioDirect rating review has been highlighted in this issue. Impact Minerals is commencing a four week drilling program near Broken Hill to test earlier indications for platinum group and base metals. The company is led by an executive with strong exploration credentials having gained experience with the relevant mineralisation types while leading a discovery team at Western Mining. The company is in the midst of a partially underwritten rights issue. Impact Minerals has retained a '4' rating on the five point PortfolioDirect rating scale for Phase I companies since being first reviewed in July 2014. The PortfolioDirect report is available here (VIEW LINK)