Materials Analyst/Strategist, Janus Analysis

Gaius King

Materials Analyst/Strategist

Janus Analysis

Equity Bottom-Up

<ul class="">
<li>Iron Ore fallen &gt;27% in nine days, trader driven, as opposed to fundamentals</li>
<li>Chinese iron ore consumption growth &gt;4% over the pcp</li>
<li>Supply shortages structural, limited capacity for near-term iron ore expansion</li>
<li>Retain BUY recommendation on FMG, Rio Tinto, BHP</li>
<li>Change SELL recommendation on Vale to HOLD</li>
<li>China actively exploring demand-side solutions, increased infrastructure investment</li>
<li>Yuan devaluation unlikely to adversely impact domestic seaborne iron ore demand</li>
<li>Decline in the LCE (lithium carbonate equivalent) price accelerating</li>
<li>Re-iterate SELL on all Lithium Explorers</li>
<li>
<a href="https://www.smartkarma.com/entities/fortescue-metals-group-ltd" target="_blank" data-smartkarma-citation="entities:41:1" rel="noopener">Fortescue Metals (FMG AU), </a><a href="https://www.smartkarma.com/entities/vale-sa" target="_blank" data-smartkarma-citation="entities:23731:1" rel="noopener">Vale SA (VALE US), </a><a href="https://www.smartkarma.com/entities/bhp-billiton-ltd-adr" target="_blank" data-smartkarma-citation="entities:5424:1" rel="noopener">Bhp Billiton Ltd (Adr) (BHP US), </a><a href="https://www.smartkarma.com/entities/rio-tinto-ltd" target="_blank" data-smartkarma-citation="entities:13:1" rel="noopener">Rio Tinto Ltd (RIO AU), </a><a href="https://www.smartkarma.com/entities/gold-road-resources-ltd" target="_blank" data-smartkarma-citation="entities:6698:1" rel="noopener">Gold Road Resources (GOR AU), </a><a href="https://www.smartkarma.com/entities/lynas-corp-ltd" target="_blank" data-smartkarma-citation="entities:20374:1" rel="noopener">Lynas Corp Ltd (LYC AU, </a><a href="https://www.smartkarma.com/entities/pensana-metals-ltd" target="_blank" data-smartkarma-citation="entities:2106:1" rel="noopener">Pensana Metals (PM8 AU), </a><a href="https://www.smartkarma.com/entities/peel-mining-ltd" target="_blank" data-smartkarma-citation="entities:4111:1" rel="noopener">Peel Mining Ltd (PEX AU), </a><a href="https://www.smartkarma.com/entities/azumah-resources-ltd" target="_blank" data-smartkarma-citation="entities:5124:1" rel="noopener">Azumah Resources (AZM AU), Ausmex (ASX: AMG), </a><a href="https://www.smartkarma.com/entities/navarre-minerals-ltd" target="_blank" data-smartkarma-citation="entities:2688:1" rel="noopener">Navarre Minerals (NML AU)</a><a href="https://www.smartkarma.com/entities/azumah-resources-ltd" target="_blank" data-smartkarma-citation="entities:5124:1" rel="noopener">, Ekorre Resources (ASX: ERX), Bardoc (ASX: BDC), </a><a href="https://www.smartkarma.com/entities/emerald-resources-nl" target="_blank" data-smartkarma-citation="entities:17495:1" rel="noopener">Emerald Resources Nl (EMR AU), </a><a href="https://www.smartkarma.com/entities/vango-mining-ltd" target="_blank" data-smartkarma-citation="entities:19897:1" rel="noopener">Vango Mining (VAN AU), </a><a href="https://www.smartkarma.com/entities/emmerson-resources-ltd" target="_blank" data-smartkarma-citation="entities:18705:1" rel="noopener">Emmerson Resources (ERM AU), </a><a href="https://www.smartkarma.com/entities/firestone-diamonds-plc" target="_blank" data-smartkarma-citation="entities:23522:1" rel="noopener">Firestone Diamonds (FDI LN), </a><a href="https://www.smartkarma.com/entities/alliance-resources-ltd" target="_blank" data-smartkarma-citation="entities:7038:1" rel="noopener">Alliance Resources (AGS AU), </a><a href="https://www.smartkarma.com/entities/blackstone-minerals-ltd" target="_blank" data-smartkarma-citation="entities:28181:1" rel="noopener">Blackstone Minerals Ltd (BSX AU), Spectrum Metals (AS: SPX), </a><a href="https://www.smartkarma.com/entities/atrum-coal-nl" target="_blank" data-smartkarma-citation="entities:9553:1" rel="noopener">Atrum Coal Nl (ATU AU), </a><a href="https://www.smartkarma.com/entities/alkane-resources-ltd" target="_blank" data-smartkarma-citation="entities:19111:1" rel="noopener">Alkane Resources (ALK AU), Blackcat (ASX: BC8), </a><a href="https://www.smartkarma.com/entities/liontown-resources-ltd" target="_blank" data-smartkarma-citation="entities:20488:1" rel="noopener">Liontown Resources (LTR AU), </a><a href="https://www.smartkarma.com/entities/tietto-minerals-ltd" target="_blank" data-smartkarma-citation="entities:28006:1" rel="noopener">Tietto Minerals Ltd (TIE AU), </a><a href="https://www.smartkarma.com/entities/cardinal-resources-ltd-9e1d58d4-8d9b-48dd-a059-3f04f896e3ee" target="_blank" data-smartkarma-citation="entities:28182:1" rel="noopener">Cardinal Resources Ltd (CDV CN), Bellevue Gold (ASX: BGL), </a><a href="https://www.smartkarma.com/entities/breaker-resources-nl" target="_blank" data-smartkarma-citation="entities:19210:1" rel="noopener">Breaker Resources Nl (BRB AU)</a><a href="https://www.smartkarma.com/entities/cardinal-resources-ltd-9e1d58d4-8d9b-48dd-a059-3f04f896e3ee" target="_blank" data-smartkarma-citation="entities:28182:1" rel="noopener"> </a><a href="https://www.smartkarma.com/entities/azumah-resources-ltd" target="_blank" data-smartkarma-citation="entities:5124:1" rel="noopener">      </a>
</li>
</ul>


Iron Ore fallen &gt;27% in nine days, trader driven, as opposed to fundamentals
Chinese iron ore consumption growth &gt;4% over the pcp
Supply shortages structural, limited capacity for near-term iron ore expansion
Retain BUY recommendation on FMG, Rio Tinto, BHP
Change SELL recommendation on Vale to HOLD
China actively exploring demand-side solutions, increased infrastructure investment
Yuan devaluation unlikely to adversely impact domestic seaborne iron ore demand
Decline in the LCE (lithium carbonate equivalent) price accelerating
Re-iterate SELL on all Lithium Explorers

Fortescue Metals (FMG AU), Vale SA (VALE US), Bhp Billiton Ltd (Adr) (BHP US), Rio Tinto Ltd (RIO AU), Gold Road Resources (GOR AU), Lynas Corp Ltd (LYC AU, Pensana Metals (PM8 AU), Peel Mining Ltd (PEX AU), Azumah Resources (AZM AU), Ausmex (ASX: AMG), Navarre Minerals (NML AU), Ekorre Resources (ASX: ERX), Bardoc (ASX: BDC), Emerald Resources Nl (EMR AU), Vango Mining (VAN AU), Emmerson Resources (ERM AU), Firestone Diamonds (FDI LN), Alliance Resources (AGS AU), Blackstone Minerals Ltd (BSX AU), Spectrum Metals (AS: SPX), Atrum Coal Nl (ATU AU), Alkane Resources (ALK AU), Blackcat (ASX: BC8), Liontown Resources (LTR AU), Tietto Minerals Ltd (TIE AU), Cardinal Resources Ltd (CDV CN), Bellevue Gold (ASX: BGL), Breaker Resources Nl (BRB AU)       



New J Hutton – Exploration Report Pt 1 (Weeks Ending 02/08/19)

United Kingdom

Firestone Diamonds plc mines, explores for, and develops diamond assets in Lesotho and Botswana. Its principal asset is the Liqhobong diamond mine located in the Kingdom of Lesotho. The company was incorporated in 1998 and is based in London, the United Kingdom.

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New J Hutton – Exploration Report Pt 1 (Weeks Ending 02/08/19)

Iron Ore fallen >27% in nine days, trader driven, as opposed to fundamentals Chinese iron ore consumption growth >4% over the pcp Supply...

Gaius King