Cash news, rather than exploration news, commanded the most interest on the Australian stock market over the past week with a flood of pre-Christmas capital raisings as small miners rushed to capitalise on strong investor-interest in the resources sector.
Battery metals, including nickel, a born-again base metal which has found a new meaning to life, starred on the Australian stock market last week, but the big news for mining investors was actually occurring 15,000km away in London.
Explorers and mine developers rushed to fill their Christmas stockings with cash this week as investor enthusiasm for resources continued to grow, perhaps aided by the return of a widely discredited term: “super-cycle”.
It was a tale of two markets in the resources sector of the Australian stock exchange this week with the top end sagging and the bottom end on fire, especially battery metals, where cobalt burned brightest.
The Pilbara gold rush reached fever pitch this week with some explorers exposed to the “conglomerate nugget” theory doubling in a day, perhaps influenced by a well-timed television promotion at the annual Denver Gold Forum in the US.
Battery metals provided the positive spark for investors in mining stocks over the past week, neutralising to some degree the negative effect of a sharp fall in the price of gold after the US central bank signalled the start of a period of rising interest rates.