Strong aggregate cashflow will boost Anax's fortunes

It seems like the pack of cards is still being shuffled ahead of Trump's inauguration. The gold price is rising even though the US$ is stronger. Normally there is an inverse relationship. With the A$ falling, we are now seeing the A$ gold price reaching new highs, surging to A$4,375/oz in an uptrend that knows no ceiling. That contrasts with the performance of base metals prices and copper, which was the darling of the market a year ago. Gold is the only game in town. Forget those speciality metals.

Interest rates have been rising in the US over the last month, causing the strength in the US$. This is not what Trump wants to see. His preference is for a lower US$ which would take the gold price even higher. Wall Street analysts have already started calling for prices of US$3,000-$3,500/oz in 2025. China continues to be named as the key driver, both privately and on the government account, as economic uncertainty clouds its future.

When we think of Anax we think of the Whim Creek copper project in the Pilbara. Anax bought an 80% interest a few years back, spending $4m and paying $3m in cash. Whim Creek is a brownfields copper project in the Pilbara. Previously, Straits Resources operated an oxidised ore heap leach copper mine from 2004 to 2009. The deeper primary ore was not mined at the time. Recently there has emerged a new cash flow opportunity for Anax in aggregate production. 

 WeeklyComm11Jan2025.pdf