Sectors: Resources
I would like your opinion as to why FMG has crashed – was forecast to be in the mid $20s by MM now around $16
ALB is the world’s largest listed lithium producer and is leading the way in 2026, breaking to new lows overnight, having more than halved from its May high. The recent news and underlying weakness in the stock are causing MN to reconsider our position.
LTR has looked after our Emerging Companies Portfolio over the last year, but our August purchase at $1.19 is looking concerning after initially rallying more than 12%. Similar to our holding in PLS, we are now questioning if we still want to own LTR as the news flow goes from bad to worse.
Another similar picture, IGO may be a very low-cost lithium producer benefiting from Greenbushes’ exceptional ore grade, but it will still struggle if Li prices continue to slip lower.
Mineral Resources isn’t a pure play Li stock but its where the company’s growth is perceived to come from; hence, it’s dancing to the same tune as PLS. It’s easy to think that MIN has simply come down to 3-month support, but the downside momentum combined with the 3-pronged negative news makes us feel it is likely to break lower.
Contemporary Amperex Technology Co. Ltd. (CATL) is the world’s largest EV battery manufacturer and a major player in the lithium supply chain. It is principally listed in Shenzhen (300750 CH) and Hong Kong (3750 HK), with its shares also traded in Vienna (CATL AV). CATL supplies many of the world’s largest automakers, including BMW, Mercedes-Benz and Volkswagen, while Tesla also uses CATL batteries in a number of models.
Uranium has increasingly become a second-order AI trade as investors position for the enormous electricity requirements of data centres. The likes of Paladin Energy (PDN), Deep Yellow (DYL), and NexGen Energy (NXG) therefore carry indirect exposure: slower data-centre construction could temper expectations for incremental nuclear-power demand. Their weakness on Monday alongside Asian semiconductor stocks illustrates how closely the market has linked the themes.
Copper stocks are increasingly caught in the AI-slowdown crossfire as they’ve evolved from a pure commodity trade into an AI-infrastructure trade. The copper bull case has been increasingly underpinned by expectations of enormous demand from data centres, power grids and electrification, helping drive strong gains across miners such as BHP and Sandfire. Consequently, any suggestion that hyperscalers could slow their AI build-out naturally raises questions over the timing of that incremental demand and gives investors another reason to take profits after a powerful run.
Hi MM,
We’ve selected the OZR ETF as it currently carries the lowest energy weighting of its peers, i.e. less than 13%. As is common with the cyclical resources space, this can be a volatile ETF, but we remain bullish into 2027, especially towards copper, which is a dominant influence on the OZR, with BHP and RIO making up over 45% of its holdings at this stage. While we would simply prefer buying BHP into a steep pullback, for ETF-focused members, the OZR makes sense to us, although it’s not cheap (0.34%) considering it holds simple ASX miners.
