Like it or not, it’s 11 o’clock in mining – by Hedley Widdup (Live Wire Markets – May 31, 2021)

Mining is booming: a number of mineral commodities have recently set new records and share prices of major miners have also reached fresh all-time highs. Ultra-accommodative global monetary policy settings have ushered in an era of ‘free money’ which has inflated asset markets.

Liquidity in the form of investor funding is pouring into mining equities, and this has opened a window which only ever occurs in the latter years of a boom – the ability to conduct large mining IPOs.

Large mining IPOs define 11 o’clock on the Lion Clock – a time when liquidity is uber-abundant, the market rewards growth, puts high values on exploration assets, junior companies perform strongly and is the final (often multi-year) episode of the boom.

This might not prove to be a popular conclusion, it hasn’t been when it was 11 o’clock before. And, it is certain to ignite debate which is absolutely welcomed. A personal request – please do not justify any perspectives with the phrase “its different this time…”.

Mining Cycles and the Lion Clock

The Lion Clock depicts the mining cycle according to liquidity indicators that are diagnostic of the different stages of the cycle.

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