Isn't it a bit generalist to group all commodities together. I would have thought it would be more relevant to consider say lithium and graphite versus coal and oil. The generalist approach taken fails to consider changing technologies and consumer sentiment and thus how helpful is it other than a 'statement' of history!

Patrick Fresne

I think you make a good point, but keep in mind most of the companies in the sector are junior exploration companies, and in general it isn't too difficult for such companies to shift focus from one out of favour commodity to another one more likely to attract new investors: For example, a large number of former copper/zinc/nickel explorers have joined the search lithium over the past six months. As a result, there are now around 40 companies exploring for lithium, roughly the same as the number of listed companies representing the Australian agriculture sector. Overall it does seem that there are too many listed resource companies given the current level of investor interest, though hopefully this situation will gradually correct over the next couple of years.