TLG - Media, page-14645

A note on Next Investors Sat morning update.

Lithium and nickel appear to be taking a breather for the moment as spot prices go through a period of weakness - possibly due to temporary flooding of spot markets by China and Indonesia respectively to maintain their top exporter positions.

Graphite sentiment has been increasingly positive over the last few months and looks like it may be entering its time in the sun this year.

Fossil fuels are coming off a long period of underinvestment, with many having over estimated the speed with which renewable energy would come online as a replacement.

Nuclear energy is suddenly having a run of positive sentiment and we expect capital to cycle into uranium projects in the near term and hopefully into the medium term as well.

And once all these new energy sources come online and electric cars make up more of the global fleet, existing power grids are going to need an upgrade and new transmission lines will need to be built - that’s going to need a lot of copper and steel (iron ore).

It’s hard to pick when and for how long sentiment and capital will cycle into a particular segment of the energy transition, so we maintain long term positions across all segments of the “electrification” thematic.

We fully expect capital to cycle in and out of the different areas as and when sentiment dictates.