MineLife Resource Report

MineLife Resource Report Providing independent coverage of Australian resource stocks, commodities and issues impacting the broader mining and energy sectors internationally.

I have been a resource analyst following the fortunes of the Australian resource scene for the past 25 years in terms of both equities and commodities - working with stockbroker Intersuisse and financial group Fat Prophets, prior to working for myself. I believe the most interesting resource opportunities are typically found at the smaller end of the market - which is the area that I exclusively focus on. Follow us to stay up to speed and informed of the latest in the resource sector.

Not surprisingly, gold has today reacted strongly to the tariff circus - with US$gold reaching a new all-time high at $3...
03/04/2025

Not surprisingly, gold has today reacted strongly to the tariff circus - with US$gold reaching a new all-time high at $3,167/oz, while in A$ terms the price surged to a record above A$5,050/oz.

The market’s immediate reaction has been a widespread shift into defensive mode, with capital flowing out of equities and risk assets and into gold - the traditional safe-haven asset. Major gold ETFs like SPDR have recorded significant net inflows for three consecutive sessions, indicating that investors are buying gold not only due to inflation or interest rate concerns, but also for its role as a systemic risk hedge, similar to past periods of political and economic turmoil.

The bottom-line is that gold prices will not only remain strong, but will likely keep setting fresh records, so the outlook is exceptional. Interestingly though we have seen a divergence in terms of silver, with its decline relative to gold potentially indicating profit-taking and a flight to safety, given it has greater industrial usage.

Coverage stock EcoGraf Limited (ASX:EGR, FSE:FMK) has for a long time now been a story for the patient investor, but it ...
25/03/2025

Coverage stock EcoGraf Limited (ASX:EGR, FSE:FMK) has for a long time now been a story for the patient investor, but it is great to see the company’s development prospects finally receiving proper recognition in the marketplace - with EGR’s share price trebling over the past month.

EGR has for many years remained firmly focused on progressing its Epanko Graphite Project in Tanzania towards commercialisation, and over recent weeks EGR has achieved two major developments: firstly, the granting of a much-anticipated 25-year mining licence by the Tanzanian Government; and secondly encouraging results from an Independent Engineering Study assessing the development of the proposed TanzGraphite Mechanical Shaping Facility.

In terms of next steps, EGR has mandated KfW IPEX-Bank to undertake advisory, structuring and arranging services to obtain import credit cover (UFK Cover) and arrange a senior debt facility (UFK Tranche) of up to US$105 million for the construction of Epanko.

Coverage stock Capricorn Metals Ltd (ASX: CMM) has released outstanding 2025 first-half results, maintaining its operati...
19/03/2025

Coverage stock Capricorn Metals Ltd (ASX: CMM) has released outstanding 2025 first-half results, maintaining its operational consistency in terms of production and profitability, and putting it on track to achieve full-year production guidance of 110,000 – 120,000 ounces and AISC guidance of $1,370 - $1,470 per ounce. The graphic shows CMM's performance since late 2017 versus the A$ gold price.

CMM’s outstanding track record is reflected in its share price performance since our coverage initiation in late 2017 at $0.415, with the stock now up almost 2,000% and likely set for further gains as it is in the process of assessing the economics of bringing a second major gold project into production at Mt Gibson. CMM therefore presents itself as one of the best regarded ASX gold equities, due to the quality of its management team, its long-life/low operating cost assets, and its strong organic production growth outlook.

The Gold to Oil ratio is a historic financial metric that indicates how many barrels of oil can be bought with one ounce...
19/03/2025

The Gold to Oil ratio is a historic financial metric that indicates how many barrels of oil can be bought with one ounce of gold. This ratio serves as a barometer for the relative valuation of the two commodities, providing a degree of insight into economic stability, inflationary pressures, and overall market sentiment. A higher ratio often signals weaker oil prices or stronger gold demand, while a lower ratio can indicate robust oil markets and economic expansion.

The gold-to-oil ratio currently stands at 45 barrels per ounce, a very high level from a historical perspective. The ratio has typically ranged between 10 and 30 in most market conditions, with only a few instances of extreme spikes. The most notable peaks occurred during major economic crises, such as the 2008 financial crash and the 2020 lockdown oil price collapse, when the ratio surged as oil prices plummeted relative to gold.

There is no doubt that there is extremely strong momentum in the gold market that is justified for a multitude of very sound reasons - including escalating global debt levels, currencies losing value, record levels of central bank and investor buying, and global political and financial market uncertainty. However, I think that crude oil prices could be set for a recovery, even if gold prices continue their inexorable climb, due to high levels of geopolitical uncertainty that are unlikely to go away any time soon, and the possibility of stimulus measures in China to boost growth in the world's second-largest oil consuming nation.

Another emerging gold play that is outperforming is coverage stock Rox Resources Limited (ASX:RXL). Over the past 12 mon...
16/03/2025

Another emerging gold play that is outperforming is coverage stock Rox Resources Limited (ASX:RXL). Over the past 12 months RXL is up 111% versus a 44% gain for A$ gold.

RXL's latest update highlights the success of ongoing exploration and appraisal activity at its 100%-owned Youanmi Gold Project, located near Mt Magnet in Western Australia. RXL's latest results from its ~35,000 metre Step-up diamond and RC drill program have returned multiple high-grade gold results, outlining new areas of mineralisation. Youanmi hosts a current Global Mineral Resource of 16.2Mt at 4.4g/t for 2.3Moz of gold, with potential for further expansion with the integration of existing prospects into the Resource and further drilling

The latest results help improve Resource confidence, opening up growth opportunities and refining the geological understanding of the broader Youanmi mineralised system. A revised mine plan from the DFS (currently underway) is aimed at delivering higher ore throughput rates and higher gold production per annum than previously reported, thereby reducing the capital payback period.

Long-standing coverage stock Melbana Energy Limited (ASX: MAY) is making solid progress on two separate project fronts -...
09/03/2025

Long-standing coverage stock Melbana Energy Limited (ASX: MAY) is making solid progress on two separate project fronts - Cuba and Western Australia.

H1 2025 promises to be a pivotal period for the company, as MAY looks to convert its exploration success over recent years within PSC Block 9 onshore Cuba into commercial oil production. MAY’s phased development plan will see the drilling of a series of new Unit 1B production wells using existing 2D seismic control targeting the highest confidence 1C resource of 16 million barrels (100% share, low estimate).

MAY’s primary short-term goal remains the export of a first cargo of oil production to test and analyse the performance of logistics, storage and commercial arrangements.

3D seismic acquisition planned for 2025 will allow subsequent development wells to be more accurately positioned to more efficiently develop the entire recoverable 2C Contingent Resource of 46 million barrels (100% share, best estimate) and pursue the entire 3C Contingent Resource (100% share, high estimate) of 129 million barrels.

MAY has also completed maiden resource estimates for the undeveloped Vesta and Swan gas and oil field discoveries located within AC/P70 (Melbana 100%) offshore northwestern Australia. MAY has outlined a Prospective Resource of 2,754 Bcf and 43 MMbbl (unrisked gross best estimate), and a Contingent Resource of 276 Bcf and 34 MMbbls (unrisked gross best estimate) associated with the undeveloped Vesta and Swan oil and gas fields.

There is a stark disparity in the performances of crude oil and natural gas respectively. Over the past 12 months crude ...
08/03/2025

There is a stark disparity in the performances of crude oil and natural gas respectively. Over the past 12 months crude oil is down 16%, as it is recently impacted by a deluge of negative factors, including China's sluggish economic recovery, OPEC+ plans to raise output in April, and ongoing trade tensions. The production increase could contribute to a bearish outlook for global crude prices. Higher tariffs on key oil suppliers could increase energy import costs, leading to higher fuel prices in the U.S. This inflationary pressure could dampen consumer spending and fuel consumption, adding further strain on global crude prices.

On the other hand, natural gas prices are up 165% over the past year. In Europe, prices have surged as a result of President Trump's threatened sanctions on Russia, raising concerns about energy supply and potential shifts in gas flows to Europe. The situation is compounded by Ukraine’s gas shortages, forcing it to rely on European markets, as well as general market and trade uncertainty.

China now dominates the international nickel market and the situation is reinforced with Anglo American’s sale of its Br...
25/02/2025

China now dominates the international nickel market and the situation is reinforced with Anglo American’s sale of its Brazilian nickel business to China’s MMG. Chinese companies already control around 75% of refining capacity in Indonesia, which has rapidly emerged as the world’s largest supplier. And with two other Western producers looking to offload their nickel operations due to low prices, China’s market dominance could yet grow further.

Gold is trading at fresh record highs and next stop is almost certainly $3000 over the coming week/s of trade. Prices ha...
25/02/2025

Gold is trading at fresh record highs and next stop is almost certainly $3000 over the coming week/s of trade. Prices have risen for the past eight weeks, the longest streak since 2020. Gold ETFs saw an inflow of 52.4 metric tons worth $5 billion last week, the largest amount since the first week of March 2022, when global markets were grappling with immediate consequences of Russia’s invasion of Ukraine. Mounting concerns over President Trump’s disruptive trade and geopolitical agendas are driving demand for gold as a haven asset.

Coverage stock West African Resources (ASX: WAF) is a shining example of a junior gold exploration company that has mana...
27/01/2025

Coverage stock West African Resources (ASX: WAF) is a shining example of a junior gold exploration company that has managed to successfully transition all the way through to production status - with its share price rising from just $0.08 in 2015 to above $1.60 now.

The platform for WAF's achievements was initial exploration success, which then transformed into advanced Resource status, before progressing through successful appraisal studies and then final funding and government approvals. WAF was able to successfully commission maiden gold production at its Sanbrado mine in 2020 and has since managed four consecutive years of meeting production and cost guidance.

WAF has developed a sound track record of meeting market expectations, with Sanbrado establishing WAF’s reputation as a company that can develop mines and deliver reliable production. The company’s second operation, Kiaka, has seen construction, operational readiness and grade control drilling all progressing on-time and on-budget, with production set to commence during Q3 2025, when WAF will become a +420,000 oz p.a. gold producer.

In a testament to persistence in the exploration game, coverage stock AusQuest Limited (ASX: AQD) has this morning relea...
23/01/2025

In a testament to persistence in the exploration game, coverage stock AusQuest Limited (ASX: AQD) has this morning released details of a copper porphyry discovery in Peru.

AQD was attracted to Peru more than a decade ago due to its prospectivity for large-scale copper discoveries, and today's announcement reinforces the hard slog that goes into an 'overnight success story'. AQD's shares are currently trading up 188% at $0.023 in today's trade.

Results are only available for the first two RC holes at the 100%-owned Cangallo Porphyry Copper Project, but multiple wide intercepts of significant copper and gold mineralisation have been confirmed in both holes - comprising 348 metres @ 0.26% Cu, 0.06 ppm Au from 6m (in CANRC001), and 188 metres @ 0.28%Cu, 0.07ppm Au from 214m (in hole CANRC002).

Mineralisation remains open in all directions, highlighting potential for defining a shallow copper oxide resource. Assay results are awaited for a further six drill-holes, which are expected by early February, and with broad zones of continuous visible copper mineralisation evident.

This is the maiden drill program at Cangallo and has only tested a very small fraction of the prospective target area.

Logistically, the project is located within 10km of the coast and therefore has the potential to be a low capital copper development project.

Coverage stock QPM Energy (ASX: QPM) has neatly pivoted to become a leading producer of gas and a budding electricity su...
15/12/2024

Coverage stock QPM Energy (ASX: QPM) has neatly pivoted to become a leading producer of gas and a budding electricity supplier in Queensland's Bowen Basin, at a time of rising energy prices and as the AEMO warns of increased blackout risk in Queensland due to hot weather, high demand, and aging coal plants.

QPM's Moranbah Gas Project (MGP) was originally acquired in August last year in order to secure gas supplies for its then-flagship TECH nickel project at Townsville. However, Moranbah has now taken centre stage in its own right, as a valuable asset where gas production can be boosted and in turn utilised for electricity generation. In order to enhance its objectives, QPM this week announced agreements to utilise the 12.8MW Moranbah Power Station (MPS).

QPM will have operational and dispatch control of the MPS, including the capability to buy electricity directly from the grid at the National Electricity Market (NEM) spot price. This gives QPM the flexibility to buy electricity at low to negative pricing during the day, and to generate electricity for self-consumption and export at other times. QPM also has the option to acquire the MPS at the conclusion of the operating agreement.

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