While the program focusses on the groovy end - Li Co REE - the pressures for new supply are equally profound for the suite of minerals S32 produces. Al Cu Ni Mg Zn Ag will all be in high demand - likely even to demand destruction, meaning not all manufacturers for the electrical revolution will get metal.
We can puff out our chests about Australia becoming a mining powerhouse, point to the major upswing in exploration and the welcome economic activity. I want to point out this will be hard, with difficult trade-offs and real environmental costs.
We will need geologists, large new electricity generators, good regulation and extensive automation. The biggest leap is in assembling and intelligently using risk capital on a scale never seen before.
S32 is exquisitely placed to flourish through this, to build and buy mines. GK & team should raise the price they are prepared to pay for projects, though not to relax the Tier 1 quality criteria.
The $7 optimistic posters have been muttering about is not far away.
GLTAH
Ash
S32 Price at posting:
$4.63 Sentiment: Buy Disclosure: Held
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