As the gold price continues to trade at or near record levels, Guy Le Page, director at RM Corporate Finance, said he’s seen a ‘big uptake’ of gold stocks in Australia over the last 12 months.
Interest in lithium has dropped off, but copper, uranium and critical minerals like antimony are gaining attention.
In terms of what his firm is focusing on right now, he highlighted copper and uranium.
‘I think copper and uranium are front of our mind at the moment,’ Le Page said.
Why copper and uranium?
Copper’s importance in Australia is growing as the country focuses on its road to net zero. The red metal is often used for renewable energy innovations such as electric vehicles, wind turbines and solar panels.
Major miner BHP (ASX:BHP,NYSE:BHP,LSE:BHP) is projecting a 70 percent increase in copper demand by 2050, and like other companies is working toward boosting its output of the key commodity.
BHP plans to double its copper production over the next decade via a significant expansion at its Olympic Dam deposit and by developing its Oak Dam deposit in South Australia.
Olympic Dam is among the world’s most significant deposits of copper, along with gold and uranium.
While uranium is not included in Australia’s latest critical minerals list, the country’s output and reserves underline it as a key player in the nuclear energy sector. Data from the World Nuclear Association shows Australia is one of the world’s largest uranium producers, alongside Kazakhstan, Canada and Namibia.
Furthermore, the Minerals Council of Australia states that the country’s uranium reserves are the world’s largest, accounting for approximately one-third of global resources.
Where is RM Corporate Finance focusing?
Le Page also said his firm currently has a particular focus on North America.
He sees RM Corporate Finance filling a gap for companies to raise smaller amounts of money.
‘It’s difficult for companies to raise $1 million to $5 million in Toronto. It’s actually not that hard to raise $50 million to $100 million in Canada, but that smaller end is difficult, and that’s a sort of void that we’re filling at the moment.’
For Le Page, it makes sense for investors to consider cross-border stock opportunities.
‘I’d encourage the investors (in Canada) to branch out and buy some Aussie stocks,’ he said.
Looking more closely at jurisdiction, Le Page said stable geographies are diminishing by the hour.
Still, he explained that choosing where to invest remains a case-to-case basis, mentioning how a few areas in Africa, such as Mozambique, are currently seeing instability when they have been quite secure for a long time.
Le Page also pointed to ‘headaches’ in West African countries like Burkina Faso, Mali and Niger.
Botswana is one African jurisdiction that remains interesting for mining companies. Recently, BHP announced plans to invest up to AU$40 million in Cobre’s (ASX:CBE) Kitlanya East and West copper projects.
In the same week, Globe Metals & Mining (ASX:GBE) signed its second offtake agreement with Myst Trading for the Phase 1 production from its Kanyika niobium project in Malawi.
Australia-Canada government partnerships
Australia and Canada are also working together at the government level.
Last year, the countries announced that they would be working together to improve supply chain transparency and advocate for robust ESG credentials in critical minerals markets.
Shared priorities by the countries include developing supply chain transparency and traceability to ensure fair market practices, supporting bilateral mining and service sector trade and investment and sharing information and best practices for reconciliation and economic inclusion for Indigenous peoples in critical minerals projects.
Even so, in his keynote at PDAC, BHP CEO Mike Henry warned that Canada and Australia could trail emerging mining nations such as Argentina if their governments don’t speed up permitting and lower costs.
Recent developments include a new trial to streamline eligible mining activities in Western Australia, and various commitments from the Canadian government to expedite project development.
Australia and recent trade tensions
As US President Donald Trump continues to impose tariffs, upsetting traditional global trade ties, analysts are saying that it could be the time for Canada to strengthen its relationship with Australia. In recent years, the countries have been regarded as “ideal partners” given that they share similar economic structures and values.
The Australian Strategic Policy Institute notes that Australia and Canada are well positioned to enhance their partnership in the Indo-Pacific region, potentially mitigating risks associated with US trade policies.
Earlier this month, Vasyl Myroshnychenko, Ukraine’s ambassador to Australia, appealed to Australian miners to invest in Ukraine’s resource sector amid heightening tensions between the US and Ukraine.
Myroshnychenko said that rare earths may be of special interest to Australian miners as the country makes moves toward rare earths supply independence.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
