Resources outlook for 2016

Morgans Financial Limited

Morgans Financial Limited

While bulk commodities such as iron ore and coal continue to face headwinds from slowing growth in China and new production coming online, we see growth for some more niche commodities. The areas we are seeing rapid growth is in some of the less common metals or elements that are used, and the demand for lithium is one of these. Lithium consumption generally is increasing, and lithium consumption for batteries is increasing quite dramatically. Most commodity commentators are talking about a demand increase of 20%. We also see potential in the Australian gold sector. In Australia, even with a US price under $1,100 an ounce, the Australian dollar price is a touch over $1,500 which gives most Australian producers a good margin. In this video, we highlight 2 stocks with attractive assets and dividend policies which could perform well in the current environment.


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Morgans Financial Limited
Stockbroker
Morgans Financial Limited

Morgans is Australia's largest national full-service retail stockbroking and wealth management network with over 240,000 client accounts, 500 authorised representatives and 950 employees operating from offices in all states and territories.

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