SeguraCapitulation is ocurring across resources ahead of Chinese...

Segura

Capitulation is ocurring across resources ahead of Chinese GDP data tomorrow. Comments as made by David Robb from Iluka add to concerns that China is slowing.

Markets have become obsessed with an extended period of low growth.

The last month has seen an extended sell off from miners in favor of stable defensive stocks such as CCL, RHC, WOW, CSL etc.

I bought more PNA today. It may go lower but i see little risk building a position - debt is negligable, margins are solid, increased exposure to gold, reduced Capex going forward, PK and surrounds have production and life expandibility etc.

Resources have become unloved but Copper fundamentals still appear ok to me. Exploration is yielding smaller lower grade resources and substitution still looks limited.