Latest news with #VivekDhar
Mint
27-05-2025
- Business
- Mint
Iron Ore Retreats as Traders Stay Cautious on Demand Outlook
(Bloomberg) -- Iron ore extended its losing streak for a fourth day as traders remained cautious about demand and assessed moves to limit overcapacity in China's steel sector. The steel-making material dropped to a three-week low as industry players, gathered at the annual Singapore International Ferrous Week, weighed expectations for production cuts at Chinese mills. Meanwhile, daily ore flows from Brazil increased from the month before. China's steel industry needs to control capacity expansion to solve the ongoing supply-demand mismatch, Tang Zujun, vice president of the China Iron and Steel Association, said at the Singapore event on Tuesday. Another focus is consolidation in the domestic industry, as it's 'relatively scattered' with about 40% of capacity concentrated in the top ten companies, he added. The industry body said this month the government was 'actively deploying and promoting' its crude steel production mandate. China's steel market — the world's largest — has been grappling with a massive glut and weak profitability at mills. The immediate outlook on China's steel-consuming economy has 'improved' thanks to a detente in the trade war between the US and China, according to Vivek Dhar, an analyst at Commonwealth Bank of Australia. 'But it's hard to see the property or infrastructure sectors recovering meaningfully without policy support' in the form of economic stimulus, which he said is likely to come in the second half of the year. Iron ore futures in Singapore slipped 1.3% to $95.80 a ton as of 11:45 p.m. local time. Steel rebar contracts in Shanghai traded at the lowest since June 2017. More stories like this are available on
Wall Street Journal
22-05-2025
- Business
- Wall Street Journal
Gold to Hit $3,750/oz by 4Q on Safe-Haven Demand, Weakening Dollar
0149 GMT — Gold should gradually rise to $3,750/oz by 4Q on likely safe-haven demand and a weakening U.S. Dollar, says Vivek Dhar of CBA's Global Economic & Markets Research in a research report. 'The threat of military strikes against Iran can't be ruled out and raises the stakes if U.S.-Iran talks remain deadlocked,' the analyst says. Safe-haven demand will probably favor gold more than it has in the past, Dhar says, noting that the precious metal has outperformed both USD and Treasurys following the increase in U.S. tariffs. CBA also sees USD gradually falling through 2H 2025 and 2026. Spot gold is 0.7% higher at $3,339.72/oz. ( 2349 GMT — Gold edges higher in early Asian trade on a possible investor shift away from government bonds into precious metals. Global bond markets are wobbling, with traditional safe-haven assets like gold reasserting their place, says Fawad Razaqzada, market analyst at City Index and in an email. There are also growing worries over the U.S. fiscal outlook, the analyst says. 'All else being equal, it should mean even higher demand for haven assets,' Razaqzada adds. Spot gold is 0.1% higher at $3,321.35/oz. (
The Guardian
07-05-2025
- Business
- The Guardian
Global oil prices have plunged. So when will Australian motorists see cheaper petrol?
Oil prices are at the lowest they've been since early 2021. Globally, brent crude oil prices spiked after Russia's invasion of Ukraine well above US$100 a barrel, before trending lower. They then crashed through the US$60 barrier on Monday. Oil prices over time The recent falls came after the oil-producing cartel Opec+ decided at the weekend to increase production in May and June by more than expected, according to Commonwealth Bank analyst Vivek Dhar. '[That] has been tied to punishing OPEC+ members like Iraq and Kazakhstan that have consistently produced more than their allocated quota,' Dhar wrote in an investment note. As supply expands, demand has also threatened to recede amid a trade war between the world's two biggest economies sparked by Donald Trump's new tariff regime. The US economy shrank for the first time in three years during the first quarter of 2025 and China's factory activity slowed in April, as analysts predict lower growth around the world. Analysts expect petrol prices will fall. Australia's wholesale prices, paid by petrol retailers, are already down to as low as 156 cents per litre for regular unleaded, according to NRMA spokesperson Peter Khoury. That means bowser prices should come down to temporary lows of near 160 cents in the major cities, excluding Hobart, Canberra and Darwin. 'We expect to see average prices in the 160s – possibly even lower, depending on if the trend continues – and that's obviously great news,' Khoury says. 'Heading down, but we don't know how far and how long.' By comparison, average retail prices in major cities were about 180 cents per litre at the end of 2024, according to the Australian Competition and Consumer Commission. Wholesale prices in 2024 were around 170 cents a litre and had peaked at 200 cents in the wake of Russia's invasion of Ukraine in 2022, according to NRMA.
Sky News AU
06-05-2025
- Business
- Sky News AU
Donald Trump wants US oil production to ‘start soaring'
US President Donald Trump has spoken on OPEC Plus to produce more oil to bring down prices which would reduce inflation across the Western world including the US. CBA Energy Commodities Research Director Vivek Dhar claims Mr Trump wants to 'feed that idea'. 'He wanted US oil production to really start soaring,' Mr Dhar said. 'They openly said that this could be the tipping point for US oil production. 'Puts in perspective that where we are right now in terms of US oil … it may be coming to an end because of low prices. 'You can't have both, you can't have low oil prices and then a us oil industry that's booming.'
Courier-Mail
28-04-2025
- Business
- Courier-Mail
Alkane and Mandalay in gold merger
Don't miss out on the headlines from Stockhead. Followed categories will be added to My News. A merger of equals between Alkane and Mandalay will create a powerhouse gold and antimony producer Dart Mining has signed option agreements with Infinity Lithium for two non-core projects in Victoria Western Gold Resources has raised $1.05m to move its Gold Duke project towards production Your standout small cap resources stocks for Monday, April 28, 2025 High prices are seeing an increase in M&A activity in the gold sector with the latest involving the merger of two producers, ASX-listed Alkane Resources and TSX-listed Mandalay Resources. Another gold-related play has seen Dart Mining sign an options agreement with Infinity Lithium for INF to potentially acquire two non-core DTM gold prospective properties in Victoria. The yellow metal has come off its high of US3500/oz early last week and was trading just under $3300 at the time of writing but the market fundamentals remain in place for continued strong prices. Commbank mining expert Vivek Dhar even predicts that gold could rise to US$3750/oz by the end of the year. 'Even though gold prices and central bank gold purchases have shown virtually no correlation in the last two years to the end of 2024, the anticipation of more central bank buying, combined with extraordinary safe‑haven demand, may see gold rise to $US3750/oz by year‑end,' he said in a note. 'The risk that gold rises above our forecast can't be ruled out either but our expectation for price growth to slow relative to what we've seen so far this year is tied to the risk that Trump continues to walk back current trade policy and that gold has already priced in significant uncertainty.' The merger of equals Alkane and Mandalay is set to create a powerhouse gold and antimony producer with three high-performing mines across Australia and Sweden – Alkane's Tomingley in NSW and Mandalay's Costerfield in Victoria and Bjorkdal in Sweden. It will create a billion dollar gold producer that will also bring Australia's only operating antimony mine to the ASX. Costerfield is the only domestic producer of the critical mineral. The combined company will operate as Alkane Resources and will produce an estimated 160,000 gold equivalent ounces in 2025, growing to more than 180,000oz in 2026. There is also the likelihood of plenty more with Alkane's massive, pre-development Boda-Kaiser gold-copper project not far from Tomingley. Mandalay shareholders will receive just under eight Alkane shares for each Mandalay share … resulting in Mandalay and Alkane shareholders owning a respective 55% and 45% of the combined entity. The new Alkane will hold a robust proforma cash balance of $188m as of March 31, 2025. Investors welcomed the arrangement with ALK shares as much as 4.94% higher to 78.7c. From 61c on April 7, ALK shares increased to 83.5c on April 22, a 12-month high. Alkane's managing director Nic Earner will lead the Australian-based executive team while the board will include nominees from both companies, with Andy Quinn as chair. 'The transaction will take Alkane to a new level, bringing together two companies with complementary assets and a shared vision for growth,' Earner said. 'Mandalay's two high-quality mines match the attributes of Tomingley: a proven history of consistent production, cash generation and exploration upside. 'The combination of assets, leadership and supportive long-term shareholders enhances our scale and financial strength, and positions us well to continue to pursue additional growth opportunities.' 'We are excited to have found a like-minded partner committed to the same principles,' Mandalay president and CEO Frazer Bourchier said. 'The transaction aligns with our vision to create a mid-tier gold and antimony producer with mines in premier operating jurisdictions and with our strategy for continued growth.' As it intends to concentrate more fully on gold and antimony in Queensland, Dart Mining has signed option agreements with Infinity Lithium which could see the latter acquire two of its non-core gold-prospective projects in Victoria. The agreements could see Infinity Lithium acquiring 100% of its Mitta Mitta tenement package in eastern Victoria and entering an earn-in joint venture on the Corryong gold-copper-silver-molybdenum exploration project in the same region. Both are in the highly prospective southern part of the Lachlan Fold Belt (LFB), a geological region known for its long history of mineral production, complex geology and potential for new discoveries. The belt is home to more than 105Moz of gold and millions of tonnes of copper. INF has a 60-day exclusivity period in which it can enter into a 100% purchase agreement in respect to Mitta Mitta and a JV to earn up to 80% in Corryong. The agreement has seen INF shares as much as 40% higher to 2.8c and DTM shares up by 11% to 0.5c. DTM executive chairman James Chirnside said the board was delighted to enter into the option agreements with Infinity Lithium. 'The terms of the arrangements allow Dart to continue with its focus on progressing its other projects in Queensland and Victoria,' he said. 'The arrangements allow for Infinity Lithium to rapidly expand its footprint in Victoria – it really is a win for both parties.' For INF, the agreement with Dart follows the acquisition last month of four advanced gold assets in Victoria from Highland Resources, a subsidiary of private company Jubilee Metals. That acquisition comprised multiple drill-ready targets also in the LFB, offering immediate exploration opportunities while it awaits approval of a mining licence application for its flagship San José lithium project in Spain. INF executive chairman Adrian Byass said the agreements gave the company the opportunity to carefully assess its next move. If it decides to go ahead, the Mitta Mitta project adjoins existing INF tenure and would consolidate prospective geological host rocks as well as historical goldfields that have produced in excess of 160,000oz gold. 'That some project tenements under option immediately adjoin recently acquired existing tenure provides outstanding synergies,' he said. 'The opportunity to potentially expand our existing gold-copper-silver portfolio with opportunities such as walk-up drill targets extending high-grade results in the Lachlan Fold Belt and combine our immediate exploration focus is highly attractive.' Professional and sophisticated investors have demonstrated confidence in the push by Western Gold Resources to move its Gold Duke project towards production by supporting a $1.05m capital raising. Funds raised through the placement of 24.78 million shares at 4.25c each will be used to finalise negotiations and select a gold processing option, update the September 2024 scoping study, and finalise stage 1 grade control and infill drilling plans. Gold Duke is a shovel-ready project with a resource of 3.25Mt at 2.1g/t for 214,000oz of contained gold. WGR's planned stage 1 development will focus on the production of 34,000oz of gold from the Eagle, Emu, Gold King and Golden Monarch deposits. Based on the gold price of ~$3500/oz in September 2024, this would generate an estimated undiscounted accumulated cash surplus of $38.1m with capex estimated at between $2.1m and $2.5m. This could be hugely conservative as the combination of rising gold prices and the weakness of the Australian dollar against the US dollar has nudged the Australian price of the precious metal up close to the $5150/oz mark. Managing director Cullum Winn said the capital raise significantly strengthened the company's financial position and enhanced its ability to progress Gold Duke through its initial stage 1 development. 'The timing is particularly favourable, coinciding with strong gold market conditions as we advance discussions on gold processing and we welcome to the register the strongly performing Investius Microcap Fund,' he added. Shares have increased 14% to a daily high of 5.7c. (Up on no news) Metal Bank, which holds a portfolio of advanced copper, cobalt and gold exploration projects in Australia and in the Middle East, has advanced 30% to 1.3c. Earlier this month the company was granted $275,000 as part of the Queensland Government's critical minerals Collaborative Exploration Initiative program to further assess the graphite potential at the Millennium cobalt-copper-gold-graphite project near Cloncurry in the state's northwest. Grant-supported work will include additional diamond drilling, re-assaying of previous drill samples and preliminary metallurgical work. MBK has a 51% interest in Millennium and the right to earn up to 80%. Thick high-grade graphite intersections were returned in late 2024 within and adjacent the existing JORC 2012 inferred resource at Millennium of 8.4Mt at 0.09% Co, 0.29% Cu and 0.12g/t Au. The work programs will aid in understanding of the scope, distribution and economic implications of the graphite at Millennium that has now been defined over 2km of strike and has returned considerable grades in drilling up to 56m at 18.29% TGC. MBK has a 75% interest in the advanced Livingstone Gold Project in WA which holds a JORC 2012 resource estimate of 2.81Mt at 1.36g/t Au for 122,500oz along with the 8 Mile, Wild Irishman and Eidsvold gold projects in South East Queensland. It also holds the Wadi Al Junah project and exploration licence applications in Saudi Arabia along with three granted copper projects in Jordan A big mover has been Tambourah Metals, up as much as 54% to 4c on volume of more than 34 million after extending gold mineralisation at the high-grade Tambourah King lode system within its namesake project in WA. All 11 holes in an RC drilling program intersected the ~10m wide Tambourah King structure that extends over a strike distance of 200m and remains open to the north and south. Results include: 3m at 2.99g/t gold from 36m and 2m at 3.68g/t from 47m; 3m at 2.93g/t Au from 73m; 5m at 1.35g/t Au from 92m; 2m at 1.25g/t Au from 93m and 5m @ 1.46g/t Au from 100m. An EIS drilling grant of up to $180,000 to co-fund drilling of historical high-grade gold targets at Tambourah will start this quarter. The project is within the Tambourah Goldfield, is 85km southwest of Marble Bar and comprises a series of shallow workings developed on north-south oriented quartz lodes over 3km of strike. 'We're pleased with these results that have continued to identify extensions to the Tambourah King gold mineralisation,' Tambourah Metal's executive chairperson Rita Brooks said. 'We are now preparing the next part of the drill program to confirm and model a preliminary inferred gold resource.' This article does not constitute financial product advice. You should consider obtaining independent financial advice before making any financial decisions. While Western Gold Resources is a Stockhead advertiser, they did not sponsor this article. Originally published as Resources Top 5: Alkane and Mandalay to merge as gold activity heats up
