Two things I’m thinking about today…

1) All year I’ve been saying the same thing.

The Aussie share market is heating up in terms of deals, takeover and capital raisings.

This week Virgin Australia and Greatland Gold have got on to the bourse and are on the up, at least initially.

Yesterday, one of my recommendations, copper producer Develop Global ($DVP), went into a trading halt.

The reports say this morning that the company is going to raise $180 million to fund further capital development at its next project.

I made the initial buy case for DVP in January of this year. Look at how it’s doubled in the following months…

You can see that DVP got clobbered in April too…

In hindsight, that was a humdinger of an opportunity to get in at the best possible price.

Here’s what I wrote to my subscribers at the time…

“Has anything really changed with the core case of the stock? Not to me. Bill Beament will continue driving this into production.

“Sure, the price of copper will swing around as we go along the journey.

“Nobody said it would be a smooth ride. The main thing is Develop hit their targets on a 6-18 month time frame.

“We’re riding the ‘Lassonde Curve’ here…and the ride goes on for months. It doesn’t end today or next week.”

In fact, I wouldn’t change much even today.

The “easy” money in DVP is gone now. But it still has a multiyear runway ahead of it.

Right now, it’s brining a copper-zinc mine in NSW into production. That will bring in cashflow, as long as commodity prices hold up.

Management are already moving on their next project. This one is in WA.

DVP is now a classic case of letting a known wealth creator (Bill Beament) get on with what he does best. You can ride along as a shareholder for years.

That brings us back to the capital raising. The share market is now prepared to support growth in a way that it wasn’t back in 2022 and 2023.

A supportive capital market means more investing and wealth creating opportunities for you and me!

Take the gold sector…

2) Right now, DVP is a bit of an outlier in the mining space. That’s because it’s not in the gold sector. This is where most investor capital is going.

Now, let’s think about this in the context of the ‘Lassonde Curve’ I allude to in the quote above.

Theoretically, the best place to make money in a junior mining stock is at either end of the curve.

That’s either the exploration/discovery part…or the shift into production after the deposit is identified, permitted and infrastructure built.

DVP is an example of the latter.

The former looks like this…

Back to those capital raisings.

We can now expect the junior gold miners to fund exploration drilling all over the country.

The investor support is there to make it happen. Bigger gold stocks will need more production down the road. They’ll support it too.

This is putting the first phase of the Curve into play in multiple stocks.

You can only get humdinger drilling results if you’re actually drilling a target.

That’s not happening in lithium or nickel currently. But it is in gold.

Expect more capital raisings and drilling campaigns from the junior gold sector. It’s another example of things heating up.

Are you watching this? I think you should be.

Best wishes,

Callum Newman,
Editor, Small-Cap Systems and Australian Small-Cap Investigator

Murray’s Chart of the Day –
Iron Ore

By Murray Dawes, Wednesday, 25 June 2025

While all eyes have been on bunker busting bombs, Australia’s gift that keeps on giving, iron ore, is looking particularly weak.

After holding above US$100/t since September 2024, the iron ore price has been under consistent selling pressure for the past few months on large volume.

The current level of US$94.00/t is just a few dollars above the low hit last September of US$90.00/t.

If US$90.00/t can’t hold I don’t see much support until the major low hit in 2022 of US$75.00/t.

The iron ore price has been in long-term downtrend for a year. But there has still been good support around US$100/t. That level has now given away, and the selling volume is increasing.

My guess is that we will see some fireworks once the price heads below US$90.00/t.

Regards,

Murray Dawes,
Editor, Retirement Trader and Fat Tail Microcaps