Something that reads as a bit of an 'advertorial' from Mining.com:, January 25:
Last year was a bloodbath for mining stocks tied to the green energy transition. But with markets rallying in the early part of 2024, ‘green miners’ continue to lag.
Unfortunately, that doesn’t bode well for a sharp turnaround in 2024. Dampening that outlook further is the string of negative news over the last week.
Mining billionaire Andrew Forests’ privately owned Wyloo Metals announced a shutdown of its nickel operations in Western Australia due to falling prices. Lithium giant Albemarle (NYSE: ALB) revealed job cuts and a trimming of its capital expenditure. It also unloaded its stake in Liontown (ASX: LTR) after last years’ failed takeover bid. LTR’s stock price has now plunged more than 44% since the new year.
Even the insiders have lost faith. Pilbara Minerals (ASX: PLS) CEO, Dale Henderson, sold around 1.2 million shares following the company’s latest earnings result.
But to get a handle on what 2024 looks like, we should first clarify why green metal stocks sold down so heavily in 2023.
You see, mega renewable energy projects are expensive. So too are the mining developments which supply the raw materials for these metal intensive projects. Given we’ve just embarked on one of the most hawkish monetary regimes in modern history, it explains why the sector plummeted last year.
But according to the former chief of commodities at Goldman Sachs, Jeff Currie, ‘green’ metals could return with a vengeance this year. That’s based primarily on expected rate cuts.
You see, rising rates have diminished the public’s appetite for extravagant renewable mega-projects. It’s perhaps one of the reasons why crude came back into focus last year. Fossil fuels are energy dense, making them a relatively cheap option. We could also add uranium to the list, another energy-packed commodity that can supply reliable, base load power....
....MUCH MORE
If rate cuts are the driver we get into all sorts of effects. Lower costs for large solar and wind arrays also mean lower costs to bring new mines into production - though doing the latter can take ten years just to jump through the regulatory hoops.
Additionally, rate cuts would have an almost instantaneous depressant effect on the currency, a reaction that might be better captured by silver than by copper.
Also, should the grid go down, having a bag of junk silver coins might keep the fam from starving as you ponder your next move toward global domination. And more efficiently than your kilo bars of gold. There's something to be said for divisibility into smaller units of trade.
Finally, it is at this point that the hard-cores chime in with "Lead, go long lead in the form of bullets."
Of course if they were for real and not play-acting they'd be chasing down the quasi-mythical .50 caliber depleted uranium ammo.
Which brings us right back around to green power. CCJ for the timid and "NAC Kazatomprom" for the adventurous. Dually listed LSE (KAP) and Kazakhstan Stock Exchange, Astana (KAZP)
