Far East Capital Newsletter
Could we be having a "Syrah Scenario" in Niobium?
6 May 2024

In This Issue

Could we be having a "Syrah Scenario" in Niobium?

US markets have been trending downwards over the last three week as investors are realising that their simplistic expectations of falling interest rates through 2024, require some adjustments. While good economic news is usually welcome, the implications for persistent inflation has a dampening effect on market enthusiasm. So, it has been a time of profit taking and market easing, and that has applied to the gold price as well. Markets will improve again, but perhaps not this week.

The sharper operators in the junior mining sector are already on the hunt for niobium stories with the pied piper in this chapter being WA1 Resources (WA1). That company's share price has skyrocketed from 11c to a recent peak of $19.32, taking the market capitalisation above the $1bn figure. You can work out the percentage move for yourself. It is ridiculous. Nevertheless, it is today's reality. Good promotion, when well orchestrated, can take shareholders into fairyland.

Now people are starting to think that if they have a niobium play they can join the party. Don't worry about project economics. They are irrelevant at this point of the bubble. Right now it is about getting onto a new niobium play that is yet to unfold. 

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