Was bored tonight so I've been checking some mining stats. I plotted the total metres drilled from new and existing mineral deposits in Aus, excluding oil and gas, from the year 2000 until now.
There's been a good uptick the last couple of years which is good to see. It just reflects Aus and I'm aware BLY drills mainly in USA but it's still a good macro indicator, and probably includes BLY's WA operations. As expected the chart is correlated with commodity prices.
I'm bearish about world growth due monetary policy and political risk, however the market is having a correction and has not committed to a sustained downtrend just yet. The positive for BLY is gold and copper. Gold has been looking ominous for a while and may boom if the US dollar weakens with a weakening US economy. Copper could really surprise. Copper has been holding pretty strong amidst the recent volatility, and mass production of electric cars is ever closer, so copper could boom sooner than we think...
Could be worth a punt now @R21. Now having said that, I'm off to wash my mouth with soap.
Image Data Source: http://www.abs.gov.au/Mining.
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