Finding Reasons to Buy as the Market Moves Higher

We have had the Trump-inspired panic concerning the tariff war that scared the hell out of investors, but as usual it was the sensationalising showmanship that people focused on, not the substance. That drama flushed out many weak holders of equities at the time, but these people have started to come back as Trump has moderated his stance.

We have been recently witnessing continual improvement in the sentiment amongst junior mining stocks in particular, with companies in uptrend exceeding those in downtrend. The RIU Resources Roundup in Sydney last week provided good evidence of improving activity. It is not yet boom time, but there was an appetite for new and interesting stories. That is the stage of the cycle right now and we expect it will continue to improve from here.

The strength in the gold price continues to be a major theme. Even lithium stocks are looking to trade up to that metal, which is the strongest commodity. It will remain so for the foreseeable future with US$5,000/oz not an impossible target within 1-2 years. This is a once in a generation opportunity for juniors to go into gold production and generate substantial cash flows, and be self funding in a short period of time. Whether companies can build on near term success to provide a longer term future will depend on many factors, but it is a great starting point. 

 WeeklyComm10May2025.pages.pdf