What will our next mining boom look like?
Most importantly…
Which relatively obscure, low-level miners today could rise to challenge the current majors?
That’s what I’ll be revealing tomorrow at our ‘New Big 4’ prediction session.
There’s still time to register for it for free. You can do so here.
Why are we holding this summit?
Well, let me take you back to Australia’s most ‘prosperous decade’… From 2004 to 2014.
Australia was cashing in on China’s ambitious plan to bring millions of its citizens into middle-class wealth.
It was a boom with the hallmarks of a 19th-century gold rush.
Yet, this modern-era surge was on a much grander scale…
According to Australia’s Treasury Department, China’s urban population grew by 21 million each year between 2000 and 2014.
That’s around 300 million people… Moving from basic rural subsistence to highly dense city living.
No wonder a massive real estate build-out took place, along with subsidiary things like hospitals, factories, schools, roads, and bridges.
That’s the root of the commodity boom of the early 2000s, which swelled Australia’s terms of trade and turned the country into a powerhouse economy.
But that’s the past; this is the future…
What do BHP, Rio Tinto, Fortescue, and Hancock Prospecting all have in common?
They’re among Australia’s largest companies, which rose to the top thanks to a major surge in iron ore demand. But there’s one other key feature…
Each one of them is pivoting to critical minerals.
You see, BHP, a traditional iron ore miner, is looking to leverage its exposure to copper.
In 2024, it made a multi-billion takeover of the Argentinian-based copper developer Filo Corp [TSX:FIL].
It also committed to spending at least $14 billion to expand the world’s largest copper mine, Escondida in Chile.
Meanwhile, the world’s second-largest miner, Rio Tinto, just committed $9.9 billion to plant its flag in lithium.
The transaction will instantly make this iron ore miner the world’s third-largest lithium producer.
And then we have Andrew Forrest, the founder of Australia’s iron ore disruptor from the early 2000s, Fortescue.
Forrest is embarking on a critical mineral splurge via his family-owned company, Wyloo Metals.
Nickel, platinum, and Rare Earth Metal projects have been the key focus for Wyloo’s recent acquisitions.
Meanwhile, Australia’s richest person, Gina Reinhart, yes, another iron ore magnate, has poured billions into Australian and international rare earth and lithium projects.
So, what’s the point I’m trying to make?
Well, the world’s largest, most connected insiders are investing billions into this emerging mega-theme.
The mega-rich, the ones who got it right 20 years ago, are again dancing to the same tune…
Iron ore heavyweights divesting
into critical minerals
Undoubtedly, the spoils go to those who invest early in commodity trends.
Then, stick with it through the upward leg of the cycle.
20 years ago, that was iron ore.
A commodity that was slow to respond to China’s rampant growth, but once it did, growth was historical!
By 2005, iron ore prices had almost tripled, reaching $US50 per tonne.
Three years later and iron ore was hovering just below $US200 per tonne.
Almost a 10-fold surge in just five years! Yet, the performance of the companies tied to this mega theme did far better…
From its roots in 2003, Andrew Forests Fortescue Metals traded for a measly $0.02.
By 2008, it was almost $10 per share.
A return of around 50,000%!
That’s why iron ore miners were the poster child of the early 2000s China-led commodity rush.
But this coming cycle won’t revolve
around iron ore
Critical minerals are the heart of what I believe will become the next commodity mega-theme.
But rather than share all the details here, I’m getting together with James Woodburn tomorrow to share everything I know and see coming.
Specifically, we’re going to zero in on four junior mining stocks that could emerge as major players in this next commodity mega theme.
The presentation is called ‘The New Big 4.’
I know, it’s ambitious!
But for good reason… Iron ore to critical minerals… This is the most important theme underway in the resource sector.
As I showed you, Australia’s iron ore behemoths understand what’s at stake.
That’s why they’re investing billions toward critical mineral projects!
To register free for tomorrow’s New Big 4 event, just click here.
Enjoy!
Regards,
 |
James Cooper,
Editor, Mining: Phase One and Diggers and Drillers
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