Following five grim years for the resources sector, with relentless negativity interrupted only by a few false dawns, it looks like we are now set for a multi-year grind back up. After the extraordinary run up from 2002, a hangover was inevitable while cost structures adjusted and the fundamentals reasserted themselves. The sharp bounce in Small Resources since the start of calendar 2016 was a rebound from an oversold position, though it doesn’t mean we should necessarily extrapolate that trajectory. More likely we will simply see a more constructive environment for the miners, without it being spectacular. Despite the operating costs tailwinds the miners are currently enjoying, in terms of people, equipment and consumables costs, managements are also actually just doing a good job. This is laying foundations for future performance.