Lecture Notes: Mining and Investment Discussion

Introduction

• Discussion on short interest in mining stocks and potential investments.
• Focus on uranium, copper, lithium, and graphite stocks.

Uranium and Politics

• Speaker announces consideration of entering federal politics to push for nuclear energy in Australia.
• Participates in Twitter spaces discussing uranium.

Mining Stock Short Interest

• Importance of monitoring short interest in mining stocks.
• Global Diversified Miners:
  • FMG has 1% short interest.
  • Rio Tinto has nearly 5% short interest, possibly due to arbitrage between London and Australian listings.
  • South 32 is 2.5% short; BHP is 0.35%.
• Uranium:
  • Boss Energy has 4.5% short interest, likely due to director selling.
  • Paladin has 2.8% short interest.
• Lithium:
  • High short interest in Pilbara Minerals (21.4%) and others like Core Lithium (~9%).
• Graphite:
  • Sary, Talga, and Renascor have >2% short interest.

Chinese Tariffs and EU Protectionism

• US increased tariffs on Chinese goods: lithium batteries, solar cells, EVs.
• EU also imposes tariffs on Chinese EVs to protect local industry.
• Discussion on how European car manufacturers struggle to compete with cheaper Chinese EVs.

Key Investment Themes

• Discussion on potential acquisition of Spartan by Ramelius Resources.
• Spartan’s market movements and potential for development or acquisition.

MMG and Sandfire

• MMG plans to increase copper production investment in Congo.
• Comparisons between MMG and Sandfire's financial strategies and acquisitions.

Mining Project Challenges

• Galena Mining's Abra Project:
  • Entered voluntary administration; creditors involved.
  • Sale and recapitalization process underway.
  • Management challenges and financial difficulties.
• Hastings Technology Metals:
  • Struggling to complete funding for rare earths project.
  • Capital structure issues involving debt and project financing.

Conclusion

• Current market trends indicate a shift towards more equity-based financing in mining projects.
• Ongoing challenges in maintaining competitiveness and managing investments in the global mining sector.