Last Price:
Date of Initial Coverage
02-Feb-21
Initial Entry Price
$0.075
Returns from Initial Entry
-89%
For NES to make a gold discovery at its Woodline Project, near to the 7.6Moz gold deposit, Tropicana.
The results from the drilling campaign were not enough to warrant any more significant exploration expenditure by NES at Woodline. We are holding on to our NES shares in the hope that the company finds another project of interest OR makes an unexpected discovery. We may sell out of our NES position to free up capital for other investments
✅ Initial Investment: @7.5c
🔲 Top Slice
🔲 Free Carry
✅ Initial Investment: @0.94c
🔲 Free Carry
🔲 Take Profit
🔲 Price increases 300% from initial entry
🔲 Price increases 500% from initial entry
🔲 Price increases 1000% from initial entry
✅ 12 Month Capital Gain Discount
🔲 Hold remaining Position for next 2+ years
Date | Share Price $ | Title |
---|---|---|
21-Aug-2021 | $ 0.042 | Market fluctuations and portfolio news and quick takes |
18-Aug-2021 | $ 0.043 | The hunt for Tropicana lookalike continues |
02-Feb-2021 | $ 0.079 | $11M Capped NES is Hunting the Next Tropicana - Drilling to Start in Days |
Sep 20, 2022
Macro: Commodities
Readers who follow our Investment Portfolios will know that we have been making strategic Investments in commodities that have made critical minerals lists for the EU, USA, Japan, India and Australia.
These minerals are considered critical to the digitisation and decarbonisation macro thematic and include lithium, graphite, cobalt, nickel and PGE’s, to name a few.
Over the weekend, the following speech from the president of the European Commission, Ursula von der Leyen, gave a speech announcing that the EU would look to pass a “European Critical Minerals Act”.
The aim is to avoid the position Europe finds itself in with oil and gas, where it relies on a single trading partner like Russia.
The act would see the EU put in place:
All of this bodes well for our Investments across commodities identified as “critical minerals” giving these projects strategic importance on the world stage.
To see a list of all the critical minerals in the Australian Critical Minerals strategy document, check out the following link.
Here is a snippet from that speech:
Jul 22, 2022
Macro: Commodities
Spanning three days on the pristine Sunshine Coast of Queensland, the Noosa Mining Investor Conference kicked off its 12th year on Wednesday. Attracting a diverse and large spread of corporates, brokers, retail and institutional investors, this year’s event featured over 60 companies presenting and over 1,000 people in attendance, all hosted within the coastal town's Peppers Resort.
At the event, we caught up with a number of executives from our Investment companies (including AKN, AOU, BPM and PFE) as well as companies of interest, either as potential additions to one of our Portfolios, or to gain expert insight to macro and regional headwinds impacting the markets.
The conference is held in the ideal location to mix work with pleasure, and meet a host of CEOs of ASX juniors. Each day ends with a short ‘business at the bar’ session that quickly morphs into talking tactics about where to eat and drink. On Thursday and Friday nights, many head to the Noosa Surf Club for its networking sessions, enjoying its glassed indoor area and open deck to the beach.
We look forward to providing updates on companies we met with down the road.
Jul 15, 2022
Macro: Commodities
China plans to make up to US$1.1 trillion in financing available for infrastructure spending, which we think will increase commodity demand. Read the following Bloomberg article for details.
Read the full article here.
Below are our key takeaways:
The Bloomberg article touches on the impacts of China’s COVID induced lockdowns on the domestic economy.
With economic growth tipped to slow, the Chinese government is getting ready to lean on fiscal stimulus through infrastructure investment to spur economic growth.
We think this type of fiscal stimulus is likely to become a common theme in China and the West, with macro themes like decarbonisation requiring massive CAPEX.
This infrastructure spending forms part of our “commodities supercycle” investment thesis, where we see increased fiscal stimulus and CAPEX investment spurring higher demand for commodities already facing supply shortages.
Jul 08, 2022
Macro: Commodities
The following Bloomberg article highlights China’s plan to spend up to US$220 billion to spur economic growth through infrastructure spending.
All of this new infrastructure will require more commodities.
Read the full article here.
Below are our key takeaways:
For over two years, we have been writing about an upcoming commodities supercycle brought about by infrastructure spending, following decades of underinvestment in the “real economy”.
All this investment in the “real economy” requires raw materials, which is why we think the macro backdrop for commodities over the next decade is strong.
The Bloomberg article highlights the readiness of the Chinese government to lean on fiscal stimulus to spur economic growth at a time when the Chinese economy is slowing down.
Generally, governments would try to respond to slowdowns in economic growth by cutting interest rates. With this tool exhausted after the COVID pandemic, we think infrastructure spending will become the new policy of choice for governments worldwide.
Again, this infrastructure spending will increase demand for commodities which we expect will take commodity prices higher.
Jul 08, 2022
Macro: Commodities
The following Bloomberg article showcases the moves major carmaker Volkswagen is making in the batteries industry.
Read the full article here.
Below are our key takeaways:
The news is just another sign that downstream investment in battery supply chains is showing no signs of slowing down.
VW is one of the world's largest carmakers and is heavily investing in downstream production capacity. It expects this part of its business to generate over €20 billion in revenues by the end of the decade.
This is a situation where investment in midstream/downstream (manufacturing/battery industry) is far ahead of upstream investment (mining), this leads to the supply/demand imbalances for the raw materials required to produce batteries only becoming worse.
The imbalance comes from the timing of these mega projects. Building a downstream / midstream facility could take 1-4 years whereas it takes around 7 years on average to bring a new resource discovery into the production stage.
As a result, we think that raw materials prices will remain high for at least the next decade whilst the mining industry catches up to demand.
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