Anybody investing in base metals/speculative micro caps mining in the asx?

This post has been edited by tomatotomatomy: Sep 25 2021, 07:42 AM

You get 50% discount on CGT if you hold a stock more than 12 months.

Currently iron ore companies are suffering, but I personally don’t think it’ll be long term. Australi a is positioned very nicely for the net zero emissions/renewables/electrification theme.

We have plenty of lithium, rare earth elements, copper to supply for the future. miners like VUL ran more than 1000% in less than a year for having projects like zero carbon lithium.

I missed the boat with A2M a few years ago, watched it go from 1.30 to 20.00. But COVID hit and it turned to shit.

This post has been edited by tomatotomatomy: Sep 30 2021, 11:56 AM

Investing in mining is a whole new learning curve for me.

I started doing some reading end of last year on mining investment, and it certainly opened a whole new perspective in this industry.

Yes there are many mining explorers that are drilling for resources and not making money, and also mining is cyclical, so look for a miner that can ride out low commodity prices.

If you have a chance read up on Bill Beament the ex boss of NST, and how he transformed a shell company worth $200k to a $10billion gold producer in 9 years.

If you had invested $10k into the NST in 2010, your stock would be worth more than $1.5 million at its peak last year and collecting more than $100k of interest a year. Can really retire on one stock.

My goal is to hopefully find another stock that could replicate NST on the ASX.

Tip: Bill is the new CEO of his next project VXR.ASX

This post has been edited by tomatotomatomy: Sep 30 2021, 01:38 PM

With northern hemi winter looming and wars and cold wars, I’ve just bought shares in coal producer.

Many countries are in an energy crisis now, as the political push for carbon neutral intensifies, less companies are investing in new coal mines. This is going to create a severe supply shortage as the governments discover they couldn’t transition into clean energy quick enough. (Germany, India Japan, even Australia are close to having their lights out)

I foresee months or even years of high prices for coal. Coal has already risen 200% this year.

While most coal transactions are done on futures contract, the spot price is also at all time high.

I think it’s a good time to take a position in ASX coal producers now.

A few that come to mind are TER, WHC,etc are printing money at these prices.

Note that there are 2 types of coal, met coal is used for making steel and thermal coal is used for energy

Not financial advice, do your own research

This post has been edited by tomatotomatomy: Jul 29 2022, 12:16 PM

Most coal stocks up about 30% since this post.

YAL, TER, NHC, WHC all paying 10%-40% dividends.

Europe is in an energy crisis, Germany firing up the coal plants after Nord stream gas pipeline from Russia is turned off.

Energy security is utmost importance now. The push for renewable energy is creating more shocks to the energy prices. Greenies do not know how the world’s energy-economy functions, shooting themselves in the foot.

Coal prices predicted to remain elevated for years to come

Interesting. Is this sort of like an index fund?

Would consider this maybe in the future.

Right now I’m more into speculative mining stocks

My portfolio which consisted of mostly battery materials (lithium nickel copper rare earths) were up 70% in the beginning of the year, then beaten down when Ukraine war broke out and fed started raising interest rates.

Sold everything in April to recover my costs.

Will start investing in those again when the dust settles, maybe after next year after a mini recession.

Australian miners are in the box seat for the transition to renewable energy. There will be decades of boom when that happens. Once in a lifetime chance to invest in that boom is happening soon. Australia has almost everything the world needs, and in huge quantities.