DoD securing tungsten supply chain, page-3

Welcome to Ten-Bagger, where Lowell Resources Fund chief investment officer John Forwood gives us his take on a sector of the ASX resources market full of value.

This month, John looks at how corporate activity shows long term confidence in the sold off resources sector from the big end of town.

Sans gold, silver and bauxite, prices may be down across the commodity complex in 2024 with lithium, nickel and other battery metals in a hole and uranium failing to live up to its promise.

The obvious conclusion to draw for retail investors is a negative outlook on resources, which have been heavily sold off by the market in a rally that has favoured banks and tech to the point of absurdity.

But digging a bit deeper, corporate activity suggests a belief from the smart, established money at the big end of town that a revival is on it’s way, it’s just a matter of when.

Take the evidence from law firm Allens, for example, which revealed the value of critical minerals dealmaking had lifted, extraordinarily, from $14.8 billion, compared to only $5.3 billion in 2023, even though the volume of deals in the Australian market more than halved from 49 to 24.

It’s commonly noted by fundies that where corporate money leads, equity follows, with cashed up majors and strategics filling the void created by risk adverse capital markets.

Lowell Resources Fund (A