Opportunities arising in small resources

Opportunities arising in small resources. Goldman Sachs have identified what they believe is an opportunity in some out of favour junior resource companies. The broker notes that the small resources sector weighting within the small cap index has dropped from a peak of 45% to around 20%. Of that 20% index weighting just 10 companies make up for around half of resources weighting. Goldman notes, At the peak of the miners' weighting in 2012, almost 45% of the resources weight in the small cap index was from non-producing companies. That has now fallen to c.20%. Producers replacing development companies reduces the level of risk in resources weightings. The broker says that the recent weakness has created opportunities in a couple of well established producers. Sirius Resources (SIR) and PanAust (PNA) have both been upgraded from Neutral to Buy.


The Livewire Equities feed brings you a range of insights that relate to Australian equities

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.