Who’s the next Oz Minerals?With BHP, the largest company in Australia and the largest mining company in the world paying a premium to takeout OZ Minerals, the spot light is truly on South Australian (SA) assets.
BHP is now bigger than ever. It could have bought any number of worldwide projects but it chose to invest in SA. This action has brought a lot of global attention to SA yet again. This time to the interpreted Gawler Caldera (See attached).
In the takeover, BHP will acquire not only OZ’s nickel projects but Carrapeteena, Khamsin and Prominent Hill, all 3 big IOCG projects that are notably located just off the Gawler Caldera. Whether BHP will say it or not, the buy is in itself proof that there exists a real appetite and positive investment strategy for South Australian projects. Consequently, investment eyes could also turn to other assets such as Renascor’s Carnding (Soyuz) project. Especially since it is also located on the outer edge of Gawler Caldera. However, the previous drill program aimed to chase the shallow gold potential not, test what could be the source of it and other elements at depth.
While Renascor is focussed on the Siviour Battery Anode Material Project which in itself is a company-maker, there is the potential to excel into the void left by OZ. Losing one truly South Australian mining company leaves a big hole for another mid-tier company to take its place. Renascor could very well step-up into that spot. Afterall, worldwide government incentives and urgencies has given us a tail wind and mega-scaling is how projects appear to be headed.
It could also explain the the relentless large buy orders last week.
Exciting times!
All IMO, DYOR, GLTA(patient)
Source: John Anderson via LinkedIn. My scribblings in red pen show where approximately the Carnding (Soyuz) Project is located.
