Zinc, tin, nickel, platinum evoke most optimism at Junior Indaba – by Martin Creamer (MiningWeekly.com – June 8, 2017)

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JOHANNESBURG (miningweekly.com) – UK market intelligence firm CRU is most optimistic about the prospects for zinc, tin, nickel and, to a certain extent, platinum over a 12-month time horizon and named copper, bauxite, nickel and gold as good commodities to be in over the longer term.

CRU principal consultant Ben Jones told the Junior Indaba in Johannesburg on Thursday that he expected a divergence across bulk commodities and base metals. Jones formed part of a panel discussion led by Standard Bank mining head Sandra du Toit and participated in by Regarding Capital Management chairperson Piet Viljoen and Standard Bank mining research head Tim Clark.

Clark said heart had to be taken from the mining industry finding the bottom, after a period of cost cutting, and experiencing a rebound and a restart because the waning of supply had brought it into the present healthier state.

“We’ve seen the bottom, we’ve seen very bad days and it’s unlikely that we’ll see those bad days again, simply because companies are a lot more sensitive now about their balance sheet position and growth,” he said.

He described capital expenditure as being at a record low and spoke of a dearth of growth projects at a time when global urbanisation was creating a natural demand.

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