Commodities Rip Higher on China Stimulus

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Righto money miners, welcome
back to another week.

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The flu's finished.
But yeah, caught up with the UNI

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mates, you know I did Mustang
bar Friday and Saturday night.

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What a business development
innings from.

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That is one sponsor I want to
get.

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That is the greatest place on
earth.

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Good.
Venue oh so good.

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It's a lot of.
But our goods are frigging iron

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ore price, buddy.
What up 13%?

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13% on open up the Shanghai
exchange I think.

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Yeah, mate, it's just, well,
that's pretty.

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Good.
The majors RIP higher, all of

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them.
Large cat watch list.

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Oh my energy is up a minimum 13
1/2 percent everyday when I just

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before I RIP and access mine and
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Just makes you feel good.
Oh makes.

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Go access.
You want to feel good, give them

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a call, but you'll feel great.
Your energy will be up 20%,

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right?
China stimulus, big, big news.

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This could be, as you said,
trap.

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Is this the start of a commodity
super cycle?

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He said it just like that.
No, no mail at all.

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It's a big U turning policy,
right?

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Like this is, yeah, like we're
seeing it in the in the, in the

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stocks, we're seeing it on the,
you know, in the futures

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markets.
It's like this is kind of the

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only story that really matters
right now in the markets that we

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all care about is the policy
environment in Beijing, which is

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maybe that's always been the
case to be honest.

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But you know, it's certainly
right now feels like an elevated

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time of importance on on this.
I just can't believe how quick

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things have changed.
Like we were talking about min

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rez at 30 bucks the other day
and they're bloody 52 again but

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it's just.
Min rez is definitely definitely

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getting a mention but yeah, I
think you're dead right Trav.

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This is this is the thing we've
we've got to talk about.

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Obviously a lot of the news
started dribbling out late

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Tuesday, Wednesday and it's just
sort of shaken commodities as

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well as, you know, heaps of
other markets.

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You can see the the sort of
ramifications in European

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markets you can look at like the
the luxury stocks, they get a

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pick up when Chinese buyers want
to buy more.

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So I reckon we should sort of
run through it in, you know, the

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best, the best way we kind of
can.

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And then in the background,
we're going to keep working on

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getting some China experts on
the show.

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So if you've got any
recommendations for people, just

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flick us an email, put a comment
or just let us know and we will

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try get them on the show.
But.

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If you live in Singapore, get in
touch with All the gurus are in

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Singapore it appears.
Good time zone as well.

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So to start with, let's let's
run through like what's kind of

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gone on.
Oh yeah, we got, we got Long

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Town in Kingston as well.
But but China, we do China.

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Don't forget about that.
All right, so, so everyone sort

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of knows that the the the
property market in China has

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been under a bit of a drag for
four years.

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I want to say we started, you
know, hearing about Evergrand

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and some of these other
companies in China really

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starting to slow down in 2020
through 2021.

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So it's been going on a while
and China's kind of policy has

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been pretty different, like
pretty Needless to say, the way

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they operate is very different
to the West.

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Not these massive rounds of
stimulus and you know, on the

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right side of things, they've
been actually cutting for a

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while.
So they're in a a bit of a

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different sort of sink to what
we are in Australia to what

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they're in in the US and all
these sorts of things.

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They've also kind of steered
clear of this individual

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stimulus just kind of handing
out money to individuals for

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kind of ideological type reasons
as well.

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But like you said, Trav, a lot
of this kind of changed last

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week.
They announced big measures

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which were kind of run through
the the kind of key points on,

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but the the pretty clear results
of all of this can be seen in

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the stocks.
So the Shanghai index had its

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best week in 16 years.
And if you look at the Hong Kong

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index, the Hang Seng, that had
its best week since 1998.

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So absolutely flying.
You have to caveat this with the

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point that the Chinese real
economy is very firmly different

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from the stock market that they
have.

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So there is not the same
correlation between the real

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economy as there is perhaps
between the, the S&P and the,

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the broader U.S. economy.
So that's something you really

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need to note because the the
Chinese first and foremost, they

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want to stimulate the the real
economy.

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They want people to feel richer,
spend more, all these sorts of

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things as opposed to just see
them the stock market go up

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today.
Well, this is this is a big, you

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know, policy difference between
the the largely the Western and

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China is like a lot of the the
policy settings that we see in

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the West are actually more
accommodative of just of just

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higher asset prices rather than
rather than being more in touch

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with the real economy.
A. 100% that's, that's been a

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feature since the the global
financial crisis in particular

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since 2008, a lot of the policy
that we've seen has just seen

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inflation in asset prices across
the, the Western world.

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So to get into what the Chinese
have done in the past week or

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so, the the highlights are that
they have cut some interest

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rates.
These, like I mentioned before,

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have been cut in the past, but
they did a bit more of a

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substantial cut.
They lowered the bank reserve

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requirement ratios, essentially
meaning that banks need to hold

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a bit less capital to again,
stimulate liquidity throughout

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the economy.
Then to boost the stock market,

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this is a bit of a different
one.

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Again, they've done things like
this, but not to this degree in

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the past.
They're going to help firms buy

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back their own shares by
refinancing bank loans that

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they've got essentially this
this kind of helps leverage

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investment.
I think that the kind of

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takeaway is that they don't like
the sentiment that is present in

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China.
When people see the stock

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market, they see it continuously
going down.

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They feel, you know, less
inclined to invest in assets

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like the like the stock market
because they just feel like

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they're losing wealth.
So they kind of want to put a

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put a hold to that.
They've never been outwardly

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massively supportive of just
saying the, the stock market RIP

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higher, but they kind of want a
bit of put a bit of a pause on

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it just trending downward and
downward over time.

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But the signalling is super
vital.

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And we see that in the West as
well.

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You know, the signalling around
the the central bank

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discussions, the Fed, the RBA
here in Australia, what they

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kind of signal is super, super
important.

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And some of the messaging they
were giving is that they would

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be comfortable and it's a
possibility that they would

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double or even triple the limits
on some of these packages of

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stimulus, for example, the the
stock stimulus there.

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Isn't that, isn't that the whole
stock stimul?

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I mean, it's like there is a big
difference between like, you

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know, stimulating the real
economy and then like letting,

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letting companies effectively
borrow more and have more

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fragility in your in your
financial system in order to

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just buy back stock.
That's not buying back stock is

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well capital allocation that
doesn't go to the real economy.

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It just goes to sort of the
wealth effect to the extent that

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exists.
Yeah.

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And it it seems from the outside
much more sort of short term in

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nature just to put a bit of a a
bit of a halt on the decline.

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But you can see because they had
a Politburo meeting at the end

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of last week, this was sort of
seemed to be pulled forward a

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month from when it otherwise
would have happened.

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And some of the wording stopping
the decline and stabilising the

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property market, that was
mentioned as a goal for the

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first time.
That sort of explicit wording

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hasn't kind of been used before.
And there's still questions

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about how they're going to kind
of execute that and put it into

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implementation.
But the, the fact that that is

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like the the first ticket on the
menu there is, is pretty

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telling.
They're also talking about

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issuing bonds to the equivalent
of 1.5% of its GDP to kind of

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raise capital again.
That's interesting.

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That's a pretty big number.
It's nowhere near the biggest

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that China has done in the past,
but it is a very, very big

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number.
But this whole stimulus package

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it, it's not necessarily
massive, but the the wording

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that they will do more of it and
that they're open to doing more

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of it.
I think it's just got everyone

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super excited out there.
Isn't it?

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Isn't it funny how the the this
is all about China stimulating

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China, but how it actually just
stimulates the world because the

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the fact that they are just a
buyer of so much stuff?

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Raw material which?
You're gonna go into.

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Totally, yeah.
And I'm, I'm no macro expert,

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I'll be the first to admit that
I still clear of it as much as I

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possibly can, but I do love
following the views of of some

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of the the large money managers
that have a firm view on China.

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I don't know if you caught the
commentary from David Tepper

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just a couple of days ago.
JD David Tepper, he's a, he's a,

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he's a billionaire fund hedge
fund manager.

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He runs Appaloosa management,
which I think over the last few

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years has, has been kind of
returning it's external funds

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and it basically managers mostly
tap his own capital these days,

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which is just a casual $14
billion or their thereabouts.

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He, he went on CNBC at the end
of last week.

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And I, I, I cut out a little bit
and I'm keen to just sort of to

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play it.
So you guys get get a bit of a

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you know, and and the listeners
get get get an indication of

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what these like large head funds
managers are making this like U

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turning policy from China.
Because the undervaluation as

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you, you know, listen, you can
look at your chart and look at

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the chart above on your on your
screen right there, whatever

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stock you like in China, they
are even with the decent moves,

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they're like on a flat line low
compared to where they have been

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in the past.
And you're sitting there with

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single multiple PES with double
digit growth rates for the big

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stocks that trade over here.
That's kind of versus what, you

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know, the value.
You're 20 plus on the S&P.

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OK.
And then you have.

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So the question was, was China
going to do the things that you

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want them to do?
OK.

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Are they going to do the easy
measures they they that you want

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them to do?
So yeah, they came the other

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day.
And what's his name?

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Pan Pan Gong Chang.
And I apologise because I can't

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even speak English.
Well, you know, he came out and

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he was like jovial.
It's like whoa.

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Jovial saying we're going to cut
and we're going to and we'll

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give you more.
And he said we'll do more and

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more if needed.
Now, the Chinese to say we'll do

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more and more if needed.
They don't say that because it's

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not been healthy to say those
sort of things in China.

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But they said that the other
night.

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And I've listened very carefully
what government officials say.

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So I took it that they did a
lot.

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They exceeded expectations.
And he promised to do more and

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more and more.
OK.

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And that's very strange
language, especially for, you

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know, any central banker, but
especially over there.

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So that was the first thing that
happened.

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And last night, you know, they
we heard that they were going to

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have some kind of meaning, but
they kind of blew away

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expectations on the physical
stimulus, you know, that they

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were going to do now physical
stimulus, if you look at your

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charts, if you like charts
because you used to be a broker.

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And that was a good way to do
things fast.

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What can happen around the world
when they do that?

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That's what you have to ask
yourself now.

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So now you have the Fed.
So just a backdrop again, the

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feds easy.
And you know, you have a few

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more easing coming.
The Japanese, they don't know

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00:11:14,600 --> 00:11:16,920
what they want to do right now.
But it doesn't matter what

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00:11:16,920 --> 00:11:18,440
people think.
They're going to be forced into

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00:11:18,440 --> 00:11:19,880
things.
And I can talk about that in a

230
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second.
The Europeans are lowering rates

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00:11:23,800 --> 00:11:26,120
and now the Chinese are lowering
rates, OK.

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00:11:26,120 --> 00:11:28,120
And they're going to be they're
aggressive and how they're going

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00:11:28,120 --> 00:11:30,600
to do it.
And they're also believe this or

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00:11:30,600 --> 00:11:33,400
not, swap facilities to buy
stocks.

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00:11:33,640 --> 00:11:38,120
What encouraging buyback of
stocks, encouraging buybacks of

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00:11:38,120 --> 00:11:41,000
stocks.
OK, this is China, all right.

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00:11:41,360 --> 00:11:45,200
This is box stock buybacks, not
only encouraging it, lending you

238
00:11:45,200 --> 00:11:48,440
money to do it.
And they're giving money like

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00:11:48,440 --> 00:11:50,840
health money where you can put
money out and you have no

240
00:11:50,840 --> 00:11:53,280
losses.
If you want to do it, you have,

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00:11:53,280 --> 00:11:55,080
you know how that thing works.
You have what only the money you

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00:11:55,080 --> 00:11:56,800
put up and you can don't lose
money.

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00:11:57,200 --> 00:11:59,480
That's a great deal for me.
I want to be over there bar for

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00:11:59,480 --> 00:12:01,360
some of this stuff.
The other thing I thought you

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00:12:01,360 --> 00:12:04,040
were going to ask us about
tariffs and stuff like that.

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00:12:04,080 --> 00:12:08,320
I do not care.
This is internal stimulus there

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00:12:08,520 --> 00:12:10,360
in the physical stimulus that
did last night.

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00:12:10,360 --> 00:12:13,240
They're going to encourage
consumptions directly saying it.

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00:12:13,680 --> 00:12:16,480
So they're really doing all the
things that people have asked

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00:12:16,480 --> 00:12:21,000
them to do over these years.
Good to say jd.com was up 9%.

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00:12:23,640 --> 00:12:26,480
What do you guys make of that?
Well, it's a bit of sounds like

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00:12:26,480 --> 00:12:28,760
a bit of a perfect storm.
I like if you've got like

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00:12:29,000 --> 00:12:31,920
interest rates going down in the
US and everything, and then

254
00:12:31,920 --> 00:12:34,040
you've got China's stimulus,
it's a bit of a double whammy,

255
00:12:34,040 --> 00:12:36,800
isn't it?
It's such a, it's such a yeah,

256
00:12:37,000 --> 00:12:42,520
the entire government regime
globally now is, is a line to

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00:12:43,160 --> 00:12:46,480
focus on these, these
stimulatory kind of like market

258
00:12:46,480 --> 00:12:50,240
stimulus activities, which by
their very nature kind of create

259
00:12:50,240 --> 00:12:52,560
more fragility in the, in the
financial system.

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00:12:52,560 --> 00:12:54,960
Like you heard, China's banking
sector is now going to have

261
00:12:55,280 --> 00:12:57,240
lower reserve ratios.
Well, that definitionally makes

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00:12:57,240 --> 00:13:01,960
the banking sector more fragile.
But it's, it's kind of crazy as

263
00:13:01,960 --> 00:13:03,400
well.
Like you, you see, you know, you

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00:13:03,400 --> 00:13:06,320
hear it in, in Tepper's voice,
who's talking, who's been what,

265
00:13:06,320 --> 00:13:07,680
who's been a China watcher for
so long.

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00:13:07,680 --> 00:13:10,480
And this is just like a, this a
really kind of unexpected and

267
00:13:10,480 --> 00:13:13,000
serious kind of U turn in what
the, what the policy regime has

268
00:13:13,000 --> 00:13:16,280
been there in relation to the,
the downturn they've experienced

269
00:13:16,280 --> 00:13:17,840
over the last sort of, you know,
18 months.

270
00:13:18,440 --> 00:13:22,640
I think historically stimuluses
are you you think of JFC the

271
00:13:23,280 --> 00:13:26,400
that was like a stimulus, like
they're trying to stimulate the

272
00:13:26,600 --> 00:13:29,520
economy to bloody everyone to
own their own house and that

273
00:13:29,760 --> 00:13:34,280
obviously went to shit, but.
Yeah, it does seem in the, in

274
00:13:34,280 --> 00:13:38,040
the short term it's very
encouraging for for asset prices

275
00:13:38,160 --> 00:13:42,360
exactly like as as he outlined
there, all the measures kind of

276
00:13:42,360 --> 00:13:46,680
put forward a positive in the
short term for whether that be

277
00:13:46,680 --> 00:13:49,120
you know, stocks, houses, any of
these kind of things.

278
00:13:49,120 --> 00:13:53,160
But you, you kind of got to bear
in mind that the reason it's

279
00:13:53,160 --> 00:13:56,800
done is because things haven't
been looking so healthy.

280
00:13:57,040 --> 00:14:01,280
So that's that's one to keep in
the back of back of our mind.

281
00:14:01,280 --> 00:14:04,840
Yeah, I think in like a, the way
I, I, I internalise these

282
00:14:05,000 --> 00:14:08,520
activities is you, you encourage
your, your banking sector to

283
00:14:08,520 --> 00:14:12,800
make riskier and riskier loans
or, or you know, or have like

284
00:14:12,800 --> 00:14:16,320
lower reserve ratios or whatever
the, the greater proportion of

285
00:14:16,320 --> 00:14:20,560
those new loans result in, you
know, kind of can't, can't be

286
00:14:20,560 --> 00:14:22,240
paid back.
And that's when you have kind of

287
00:14:22,240 --> 00:14:25,480
the, the you, you grow your,
your credit, you grow your debt

288
00:14:25,480 --> 00:14:28,400
and then it kind of compresses
because at some point the

289
00:14:28,400 --> 00:14:32,280
marginal kind of like, you know,
person you lend money to can't

290
00:14:32,280 --> 00:14:33,960
pay back.
Yeah, I was.

291
00:14:34,000 --> 00:14:34,920
I was going to.
Yeah.

292
00:14:34,920 --> 00:14:37,840
A. 100% I was going to mention
something further down, but it

293
00:14:37,880 --> 00:14:39,680
it's appropriate to kind of pull
it up here.

294
00:14:40,000 --> 00:14:43,240
A lot of the liquidity measures
the the lowering of the interest

295
00:14:43,240 --> 00:14:48,160
rates throughout China, you know
that that has been done to

296
00:14:48,160 --> 00:14:50,800
stimulate the economy in China,
kind of Needless to say.

297
00:14:50,800 --> 00:14:53,240
But there hasn't actually been
the appetite to borrow.

298
00:14:53,240 --> 00:14:55,520
These rates have been coming
down since 2023.

299
00:14:56,120 --> 00:15:00,120
And just, you know, reading,
reading people who watch this

300
00:15:00,120 --> 00:15:04,040
stuff religiously, they're
saying that there hasn't been

301
00:15:04,040 --> 00:15:06,800
that sort of appetite for
businesses, for households,

302
00:15:06,800 --> 00:15:09,480
whoever, to kind of borrow
despite the cost of capital

303
00:15:10,120 --> 00:15:14,240
declining over that period.
So, you know, whether we see it

304
00:15:14,240 --> 00:15:17,520
again after this sort of bigger
drop down in interest rates kind

305
00:15:17,520 --> 00:15:20,440
of remains to be seen.
But there is super weak

306
00:15:20,440 --> 00:15:23,240
sentiment both in the corporates
and the households there.

307
00:15:23,760 --> 00:15:26,640
And you know, in, in simple
terms, if you don't want to

308
00:15:26,640 --> 00:15:29,560
borrow a cheaper rate doesn't
really matter.

309
00:15:29,600 --> 00:15:33,520
So you know, it's, it's just
something to kind of bear in

310
00:15:33,520 --> 00:15:35,520
mind.
And it kind of stood out very

311
00:15:35,520 --> 00:15:38,080
interestingly that another
reason why they're trying to do

312
00:15:38,080 --> 00:15:42,440
this is turn the the sentiment
around in China to encourage

313
00:15:42,440 --> 00:15:45,760
people to invest and do these
sorts of things that lead to

314
00:15:45,760 --> 00:15:49,800
growth over the longer term.
Yeah, to focus on what like

315
00:15:49,800 --> 00:15:52,640
Teppers, you know, he
highlighted this is just a long

316
00:15:52,640 --> 00:15:55,760
term chart of Ali Baba, a little
spike at the back end there.

317
00:15:56,200 --> 00:15:58,480
It's up 30% less than a week,
but you can still see it's like

318
00:15:59,000 --> 00:16:02,600
it's pretty subdued relative to
the, the highs that reach sort

319
00:16:02,600 --> 00:16:05,000
of, you know, leading up to to
2021 there.

320
00:16:06,480 --> 00:16:08,760
I, I don't have the numbers on
me, but you know, I think it

321
00:16:08,760 --> 00:16:11,080
still trades at a single digit
multiple of earnings.

322
00:16:11,080 --> 00:16:14,280
Like it trades Alibaba this
phenomenal kind of, you know,

323
00:16:14,640 --> 00:16:18,200
Amazon equivalent, you know, can
actually trades on some

324
00:16:18,200 --> 00:16:20,200
instances instances of lower
multiple of earnings and some of

325
00:16:20,200 --> 00:16:22,320
the mining companies we we we
talk about and.

326
00:16:22,440 --> 00:16:25,760
Tepa you don't think Sorry,
Yeah, I don't think Jack Jack Ma

327
00:16:25,840 --> 00:16:28,240
talking I'll of the the CCP
helped his and Tepa.

328
00:16:30,400 --> 00:16:31,960
Is not the only one that thinks
this way.

329
00:16:32,200 --> 00:16:34,600
This is from Shanghai Macro on
Twitter.

330
00:16:35,560 --> 00:16:37,720
In short, I'm aligned with David
Tepper by China by everything.

331
00:16:37,720 --> 00:16:42,800
Since the July Politburo meeting
of 2023, I've been unequivocally

332
00:16:42,800 --> 00:16:44,360
bearish.
China On Tuesday, I ban in that

333
00:16:44,360 --> 00:16:46,920
bearish view and shifted to a
tactically bullish stance due to

334
00:16:46,920 --> 00:16:49,120
significant shifts in Beijing's
communication strategy evidenced

335
00:16:49,120 --> 00:16:51,280
by the financial regulators
press conference.

336
00:16:51,280 --> 00:16:54,560
Then, after Thursday's Politburo
meeting, I immediately sent out

337
00:16:54,560 --> 00:16:58,120
a note titled By China, where I
turned out right, Bullish over a

338
00:16:58,120 --> 00:17:00,640
cyclical time horizon.
Fresh off the press today,

339
00:17:00,640 --> 00:17:02,360
here's a tweet I thought was
worth sharing.

340
00:17:02,840 --> 00:17:07,520
Beijing Stock Exchange 50 index
soars over 14 1/2 percent.

341
00:17:07,640 --> 00:17:09,400
You record for the largest
single day gain.

342
00:17:10,359 --> 00:17:12,240
So there's a couple of stocks
mentioned to you.

343
00:17:12,480 --> 00:17:14,400
China extra is more than 10%.
Cattle.

344
00:17:14,480 --> 00:17:18,440
Cattle rose more than 5 1/2
percent despite the HQS

345
00:17:18,440 --> 00:17:21,040
production site catching big
fire on Sunday.

346
00:17:21,280 --> 00:17:24,640
The picture of the fire.
So it's kind of crazy, isn't it?

347
00:17:24,960 --> 00:17:26,599
Yeah.
Wow.

348
00:17:27,599 --> 00:17:30,320
Yeah, that I mean the, the
common feature there of all the

349
00:17:30,320 --> 00:17:34,000
commentary I've seen is people
saying short term, they are not

350
00:17:34,000 --> 00:17:37,760
out and out long term bullish
Chinese equities or any other

351
00:17:37,760 --> 00:17:41,800
sort of such Chinese assets.
It's kind of 1 to one to very

352
00:17:41,800 --> 00:17:43,880
much keep front and centre.
They they're sort of betting on

353
00:17:43,880 --> 00:17:46,520
a a shorter term reflation if
you like.

354
00:17:47,080 --> 00:17:49,040
So where's this?
Where's this stimulus kind of

355
00:17:49,200 --> 00:17:50,160
come through?
Like what?

356
00:17:50,200 --> 00:17:53,120
What's the biggest sector talk
in China?

357
00:17:53,760 --> 00:17:56,480
But the housing sector is one
that I want to talk about Maddie

358
00:17:56,480 --> 00:17:59,960
for, for a number of reasons,
mainly because it is the, the

359
00:17:59,960 --> 00:18:02,360
key asset for household wealth
in China.

360
00:18:02,360 --> 00:18:06,440
So roughly like 70% of a, a
household's wealth is tied up in

361
00:18:06,440 --> 00:18:10,600
the house in China.
So the, the simple, in simple

362
00:18:10,600 --> 00:18:13,720
terms, the negative wealth
effect that we've kind of spoken

363
00:18:13,720 --> 00:18:18,360
around is that when your house
price declines and your overall

364
00:18:18,840 --> 00:18:22,040
net worth declines because most
of your wealth is tied up in it,

365
00:18:22,080 --> 00:18:24,120
Yeah, less inclined to go and
spend throughout the economy.

366
00:18:24,120 --> 00:18:27,080
So it's not kind of great.
But you need to bear in mind in

367
00:18:27,080 --> 00:18:29,640
China, like this was very much
intentional.

368
00:18:29,640 --> 00:18:33,360
They they started this four and
four or three kind of years ago

369
00:18:33,880 --> 00:18:36,240
and they wanted to do it because
they didn't want the property

370
00:18:36,240 --> 00:18:39,720
sector to make up such a large
portion of the economy.

371
00:18:39,720 --> 00:18:43,400
They let Evergrande kind of
collapse essentially country

372
00:18:43,400 --> 00:18:46,480
garden.
It's not completely bankrupt,

373
00:18:46,480 --> 00:18:48,200
but it's a shell of what it kind
of used to be.

374
00:18:48,840 --> 00:18:51,960
The leverage in China sits
within these developers, not the

375
00:18:51,960 --> 00:18:55,800
same as it does say in the US
before the the financial crisis

376
00:18:55,800 --> 00:18:57,800
where it's all the, the
individuals who have all the

377
00:18:57,800 --> 00:18:59,440
leverage.
It sits much more in these

378
00:18:59,440 --> 00:19:02,320
developers there.
And the, the Chinese Communist

379
00:19:02,320 --> 00:19:06,600
Party was happy to see that kind
of deleverage to become a much

380
00:19:06,600 --> 00:19:11,200
more kind of normalised, if you
like, size relative to the other

381
00:19:11,200 --> 00:19:14,080
sectors within the economy.
Now that the messaging they're

382
00:19:14,080 --> 00:19:17,120
putting out is very much around
stabilising this, because if

383
00:19:17,120 --> 00:19:20,320
everyone thinks that the house
prices are just going to decline

384
00:19:20,320 --> 00:19:24,400
massively, then they're going to
run and sell and it's not going

385
00:19:24,400 --> 00:19:26,840
to be good for anyone.
So they're going out there,

386
00:19:26,840 --> 00:19:30,440
they're trying to stabilise this
and they're doing these by

387
00:19:30,440 --> 00:19:32,800
releasing all these measures,
letting people buy more, letting

388
00:19:32,800 --> 00:19:37,920
people invest in property, all
these kind of things to to

389
00:19:38,760 --> 00:19:41,560
counteract that negative wealth
effect that we're seeing.

390
00:19:41,880 --> 00:19:43,360
Right.
So if you're going to make it

391
00:19:44,160 --> 00:19:49,800
money of mine pertinent with the
mining right talk medals and

392
00:19:49,800 --> 00:19:53,760
miners for me, Jodie.
I know mate, first and foremost

393
00:19:53,760 --> 00:19:54,880
that's the one we've got to talk
about.

394
00:19:54,880 --> 00:19:57,920
So they had a huge week last
week and as we just said before,

395
00:19:57,920 --> 00:20:03,680
today has been a massive day.
So US like roughly 110 bucks a

396
00:20:03,680 --> 00:20:05,120
tonne.
Again, we'll flash up a chart

397
00:20:05,120 --> 00:20:08,840
here.
That shows FM, GB, HB, Rio and

398
00:20:08,840 --> 00:20:12,760
Min's year to date performance.
So still sort of down, not been

399
00:20:12,760 --> 00:20:16,840
a, a great year, but you can see
that kick up in the last week.

400
00:20:16,840 --> 00:20:19,880
It's, it's pretty enormous.
If you look wider across the

401
00:20:19,880 --> 00:20:23,160
other metals, copper, met coal,
even lithium, they're all sort

402
00:20:23,160 --> 00:20:26,280
of moving in the in the right
direction.

403
00:20:26,280 --> 00:20:29,520
And as a bit of a side note, Jim
Chama's the Treasurer was in

404
00:20:29,520 --> 00:20:34,120
China just last week.
And interesting to note, there

405
00:20:34,120 --> 00:20:36,400
was a lot of question marks
about whether there'd be sort of

406
00:20:36,400 --> 00:20:39,680
tariffs put on the EVs that
we're importing here that you're

407
00:20:39,680 --> 00:20:41,480
seeing more and more on the
streets here in Australia, the

408
00:20:41,480 --> 00:20:45,240
Byds and those sorts of ones.
And kind of good to see from my

409
00:20:45,240 --> 00:20:47,720
perspective that he didn't put
any tariffs on them.

410
00:20:47,720 --> 00:20:51,440
We don't have a car sector to
protect or anything like that.

411
00:20:51,440 --> 00:20:54,920
So sort of starting a trade war
with China again over, you know,

412
00:20:54,960 --> 00:20:57,840
slapping tariffs on their EVs
would have been kind of shooting

413
00:20:57,840 --> 00:21:00,600
ourselves in the foot.
Pointless, really.

414
00:21:01,920 --> 00:21:05,000
You, you mentioned those BIG4 on
all miners, like look at look at

415
00:21:05,000 --> 00:21:06,920
how they opened this morning on
the Spark chart.

416
00:21:07,040 --> 00:21:10,560
Like at one point today min res
was literally 10% up sort of,

417
00:21:10,560 --> 00:21:13,440
you know, peeled back down to 4%
intraday.

418
00:21:13,440 --> 00:21:17,720
But and the others all similar
just yeah, huge volume on open

419
00:21:18,040 --> 00:21:21,080
in response to the commodity
moves that kind of unfolding in

420
00:21:21,080 --> 00:21:22,320
real time thanks to the
stimulus.

421
00:21:24,760 --> 00:21:27,560
Yeah, I mean, mins is a really
interesting example.

422
00:21:27,560 --> 00:21:30,240
Obviously we've, we've spoken
about them a bunch lately guys.

423
00:21:30,240 --> 00:21:33,880
But you can see it will, will
flash up the the the short man

424
00:21:33,880 --> 00:21:35,600
chart here.
And you can see just the kick up

425
00:21:35,600 --> 00:21:40,440
in short interest from sort of
mid September, sort of 10th of

426
00:21:40,440 --> 00:21:42,000
September through to like the
20th.

427
00:21:42,560 --> 00:21:47,760
And it's jumping from 7 1/2% of
the shares outstanding to 12

428
00:21:47,760 --> 00:21:51,880
1/2% in the same time that the
stock's gone from about 30 bucks

429
00:21:51,880 --> 00:21:54,720
to to 51 bucks.
So that's a pretty short and

430
00:21:54,720 --> 00:21:58,480
sharp nasty burn for a lot of
those people just sort of piling

431
00:21:58,480 --> 00:22:02,520
on as they kind of I guess
anticipated the writing being on

432
00:22:02,520 --> 00:22:04,600
the wall for for mins a bit.
Hey.

433
00:22:05,640 --> 00:22:07,720
Yeah, it's, it's so interesting,
right?

434
00:22:07,720 --> 00:22:11,000
Like the policy setting was a
bit of AU turn and then yeah,

435
00:22:11,320 --> 00:22:13,640
like those people kind of double
down on their existing shorts

436
00:22:13,640 --> 00:22:15,480
when when you had the share
price come off.

437
00:22:15,480 --> 00:22:18,400
And then because it's so levered
as well as a hypersensitive

438
00:22:18,400 --> 00:22:22,680
stock to the commodity price
deviations which flipped on the

439
00:22:22,680 --> 00:22:25,120
stimulus sides.
Hawk was there?

440
00:22:25,160 --> 00:22:28,920
Was there was there any inkling
or Goss that this was going to

441
00:22:28,920 --> 00:22:31,400
happen or coming out very
abruptly?

442
00:22:31,400 --> 00:22:33,680
The China stimulus.
I didn't hear anything, Yeah.

443
00:22:34,440 --> 00:22:38,640
There had been sort of rumours
or I guess more hopes that this

444
00:22:38,640 --> 00:22:41,680
would happen for years.
Like I remember listening to to

445
00:22:41,680 --> 00:22:45,280
sort of podcast back in 2022,
people sort of thinking, yeah,

446
00:22:45,280 --> 00:22:47,960
you know, it's it's sort of time
China's going to light a big

447
00:22:47,960 --> 00:22:49,360
stimulus.
If you remember, they, they sort

448
00:22:49,360 --> 00:22:52,520
of suffered from COVID a bit
longer with these stronger

449
00:22:52,520 --> 00:22:55,680
lockdowns that they're kind of
implemented and people have been

450
00:22:55,680 --> 00:22:59,920
anticipating this sort of
stimulus for a long, long time.

451
00:22:59,920 --> 00:23:03,360
But you know, the, the timing
always kind of takes people by

452
00:23:03,360 --> 00:23:06,320
surprise as well as the, the
sort of intensity of it.

453
00:23:06,320 --> 00:23:08,200
You know, they've, they've
really locked this one in their

454
00:23:08,200 --> 00:23:10,840
gaze now.
I remember like, I don't know,

455
00:23:10,880 --> 00:23:13,720
less than a month ago,
obviously, but the iron ore was,

456
00:23:13,720 --> 00:23:16,720
I think it was just above 100.
It was like at 1:05.

457
00:23:16,760 --> 00:23:20,680
And the Chinese media is calling
that irrational like that, you

458
00:23:20,680 --> 00:23:24,040
know, the, the, the spark above
100 is a rational and then iron

459
00:23:24,040 --> 00:23:26,960
all kind of obviously fell
pretty rapidly and now it's

460
00:23:26,960 --> 00:23:31,760
bounced back again.
Yeah, I mean, you got to give a,

461
00:23:31,800 --> 00:23:34,680
a shout out to La Shrub.
I reckon he, he was mentioning

462
00:23:35,440 --> 00:23:40,160
a, a potential sort of catalyst
at the, you know, the back end

463
00:23:40,160 --> 00:23:44,920
of his mind of China stimulus.
You know, he, he had been long

464
00:23:44,920 --> 00:23:48,960
energy, long commodities more
more broadly because they were

465
00:23:48,960 --> 00:23:52,120
just so beaten up.
And I think the, the best way to

466
00:23:52,120 --> 00:23:54,080
kind of visualise this in
Australia is just think about

467
00:23:54,080 --> 00:23:56,360
the relative sort of value of
the big four banks versus the

468
00:23:56,360 --> 00:23:58,680
big miners here.
The performance in the banks

469
00:23:58,680 --> 00:24:00,280
have been so much sort of
stronger.

470
00:24:00,640 --> 00:24:04,520
So if you just kind of put on a
a relative type kind of bet that

471
00:24:04,520 --> 00:24:07,000
they would normalise that kind
of ratio between them would

472
00:24:07,000 --> 00:24:09,720
normalise a bit more.
I mean, the, the big four banks

473
00:24:09,720 --> 00:24:12,040
were just powering higher and
higher and higher over the past

474
00:24:12,040 --> 00:24:14,720
year.
And the last week or so has been

475
00:24:14,720 --> 00:24:16,360
a pretty nasty one.
They've sort of corrected a

476
00:24:16,360 --> 00:24:18,720
little bit and it's been the the
complete opposite.

477
00:24:18,720 --> 00:24:23,720
So that's pulled way more into a
kind of normalised, you know,

478
00:24:23,840 --> 00:24:27,800
relative valuations for, for the
two of them.

479
00:24:28,560 --> 00:24:32,440
The last point I think is, is
worth noting on this kind of

480
00:24:32,440 --> 00:24:36,320
China stimulus is that a, a lot
of it has been financial kind of

481
00:24:36,320 --> 00:24:39,080
related.
It's not necessarily stimulating

482
00:24:39,080 --> 00:24:40,680
demand for commodities
themselves.

483
00:24:40,680 --> 00:24:45,320
It's not as if China announced a
massive infrastructure plan that

484
00:24:45,320 --> 00:24:48,600
is going to soak up a whole lot
more commodities.

485
00:24:48,600 --> 00:24:50,640
So it'd be sort of interesting
to see if it gets to the point

486
00:24:50,640 --> 00:24:51,840
where they'd do something like
that.

487
00:24:51,840 --> 00:24:54,760
Like they're they're addressing
homes that have already been

488
00:24:54,760 --> 00:24:57,800
built that are kind of there
these kind of things.

489
00:24:57,800 --> 00:25:00,240
They're not talking about
building a heap more houses.

490
00:25:00,560 --> 00:25:05,920
So it'd be interesting if that
takes on another sort of form or

491
00:25:05,920 --> 00:25:09,720
is expanded if they really need
to address this in a bigger way

492
00:25:10,200 --> 00:25:13,040
down the track.
And kind of lastly, China has

493
00:25:13,040 --> 00:25:15,160
announced packages like this in
the past and just not

494
00:25:15,160 --> 00:25:18,680
implemented it.
So kind of worth keeping an eye

495
00:25:18,680 --> 00:25:21,920
out on whether they actually put
this into practise in in the

496
00:25:21,920 --> 00:25:24,680
future.
So what's the sum up?

497
00:25:27,080 --> 00:25:29,360
Real assets, you know, you'd,
you'd think they're in a kind of

498
00:25:29,360 --> 00:25:31,920
good spot despite all the bad
stuff out there for the

499
00:25:31,920 --> 00:25:34,520
remainder of the year, like at
least at least in the short

500
00:25:34,520 --> 00:25:37,720
term, you know, oil prices are
low that that helps a lot of

501
00:25:37,720 --> 00:25:41,000
people out there. the US is into
a cutting cycle.

502
00:25:41,000 --> 00:25:44,280
China's kind of stimulating all
these things around the world

503
00:25:44,280 --> 00:25:45,960
despite all the challenges out
there.

504
00:25:46,520 --> 00:25:48,760
They're just given a, a good
tailwind.

505
00:25:48,760 --> 00:25:53,680
So that's the sort of way the
the funds have been flowing in

506
00:25:53,680 --> 00:25:55,880
the past couple weeks.
And you'd kind of imagine like

507
00:25:56,360 --> 00:25:59,280
the US smashing through records
on the S&P, the NASDAQ, all

508
00:25:59,280 --> 00:26:01,520
these kind of things.
But this one's a bit out of my

509
00:26:01,520 --> 00:26:04,120
pay grade, Maddie.
So we'll get on some some good

510
00:26:04,120 --> 00:26:06,200
guests to to run through what
they're kind of thinking, I

511
00:26:06,200 --> 00:26:08,360
reckon.
Yeah, well, as you said, Trav,

512
00:26:08,360 --> 00:26:11,360
like buddy iron ore and Metcal,
you think China stimulus they're

513
00:26:11,360 --> 00:26:14,560
the first two things you you
think of that start flying.

514
00:26:14,560 --> 00:26:16,600
Steel mills.
Yeah, steel mills, as long as

515
00:26:16,600 --> 00:26:22,440
old President Z Jay knows like I
guess the pecking order of where

516
00:26:22,440 --> 00:26:25,560
that steel has to go, like, you
know, the housing market, it's a

517
00:26:25,560 --> 00:26:27,600
big market that's second
preference.

518
00:26:27,600 --> 00:26:30,440
But as long as he knows the
first preference, it goes to the

519
00:26:30,840 --> 00:26:36,240
the Sandvik Grand Sport division
for the lot that's that's up

520
00:26:36,240 --> 00:26:37,560
here.
Or maybe he's all, I hope he's

521
00:26:37,560 --> 00:26:40,960
all onto it.
I think it appears that Sandvik

522
00:26:40,960 --> 00:26:45,360
have possibly noticed the like
this meteoric rise of the DSI

523
00:26:45,360 --> 00:26:49,880
brand on the back of us vouching
for them for the for the whole

524
00:26:49,880 --> 00:26:51,080
past year 100.
Percent.

525
00:26:51,720 --> 00:26:55,480
And thought we'd better get it
on the back of this and great

526
00:26:55,480 --> 00:26:58,400
thinking.
Sandvik, it's DSI Underground is

527
00:26:58,400 --> 00:27:02,080
now branded as the Sandvik
Ground Support Division.

528
00:27:02,440 --> 00:27:07,680
It's all been swallowed up.
I actually feel it quite an

529
00:27:07,680 --> 00:27:09,200
honour.
One of the most honourable

530
00:27:09,200 --> 00:27:12,920
things since this podcast has
started to display the Sandvik

531
00:27:12,920 --> 00:27:17,040
logo on money of mine.
I never thought it had happened,

532
00:27:17,440 --> 00:27:21,880
but just he.
Used to he used to have great a

533
00:27:21,880 --> 00:27:23,160
great relationship with the
Sandvik.

534
00:27:23,160 --> 00:27:25,400
Jumbo, well, I had a great
relationship with both.

535
00:27:25,400 --> 00:27:29,800
I'll use like you jam ADSI split
set into the ground with the

536
00:27:29,800 --> 00:27:32,960
Sandvik Jumbo.
But now operators can use the

537
00:27:32,960 --> 00:27:35,640
Sandvik Jumbo to jam in a
Sandvik bowl.

538
00:27:35,880 --> 00:27:37,880
I think it's just great for the
industry.

539
00:27:38,400 --> 00:27:41,760
But look, don't feel, ladies and
gents, Derek Hurd is still

540
00:27:41,760 --> 00:27:45,880
running the shot.
I pack CEO for the same same big

541
00:27:45,880 --> 00:27:48,640
ground sport division.
Go Derek Hurd, go Sambic.

542
00:27:49,000 --> 00:27:50,840
Go ground sport.
Love it.

543
00:27:51,480 --> 00:27:52,840
Oh, beautiful.
Right.

544
00:27:52,840 --> 00:27:57,800
Speaking of, probably a medium
amount of ground sport going in.

545
00:27:58,040 --> 00:27:59,760
Yeah, good ground, apparently.
Lawn tear.

546
00:27:59,760 --> 00:28:03,440
There's news out.
First shipment how of Spodcon

547
00:28:03,440 --> 00:28:07,400
has been sent.
Got in a bloody buddy.

548
00:28:07,400 --> 00:28:08,640
Oh it's different to gold, isn't
it?

549
00:28:08,640 --> 00:28:11,360
I remember, I remember, I'm
holding the spot in the photos.

550
00:28:11,360 --> 00:28:13,880
But like God, the amount of time
it takes to frigging get it on

551
00:28:13,880 --> 00:28:16,600
the ship and everything.
Bit different to sending it to

552
00:28:16,600 --> 00:28:19,080
the men.
The joys of bulk commodities.

553
00:28:19,640 --> 00:28:26,400
So what a let's go through it.
So 11 and a half, 11,855 wet

554
00:28:26,400 --> 00:28:33,200
metric tonne of 5.2% spodumene
concentrate was on the on the

555
00:28:33,200 --> 00:28:36,120
water going to an existing off
take customer.

556
00:28:36,120 --> 00:28:40,200
So they're saying at the moment
Kathleen Valley they've produced

557
00:28:40,200 --> 00:28:43,600
28,000 wet metric tonnes of
concentrate to date from first

558
00:28:43,600 --> 00:28:46,400
production that was announced
31st of July.

559
00:28:46,560 --> 00:28:50,080
Yeah, so and they've also
commenced selling into the spot

560
00:28:50,080 --> 00:28:52,880
market for.
Uncontracted.

561
00:28:53,000 --> 00:28:55,680
Uncontracted products.
So they said there was a spot

562
00:28:55,680 --> 00:29:01,320
sale of 10,000 tonnes sold to a
Singapore based trader at a

563
00:29:01,320 --> 00:29:04,840
premium.
The spot actually US $802.00 per

564
00:29:04,840 --> 00:29:07,760
dry metric tonne at SC six
equivalent.

565
00:29:07,960 --> 00:29:11,720
Now we're going to talk about
this SC six in a bit, but so

566
00:29:11,720 --> 00:29:14,800
that's considering the spot
prices currently sitting the two

567
00:29:14,800 --> 00:29:17,360
numbers I saw this morning 7:50
to 786.

568
00:29:17,360 --> 00:29:22,360
So I look for around 5.2% it's
about quite still about 10

569
00:29:22,360 --> 00:29:24,880
million Aussie bucks outside of
their off takes.

570
00:29:24,880 --> 00:29:28,720
So scheduled to be shipped early
next quarter that bit.

571
00:29:28,720 --> 00:29:33,920
So yeah, I'm might be a bit of a
informative week on the line

572
00:29:33,920 --> 00:29:37,520
town front, I think because I
think we might say something

573
00:29:37,520 --> 00:29:41,160
from out soon around this sort
of mine review.

574
00:29:41,160 --> 00:29:42,960
We're all waiting for, for, for,
you know?

575
00:29:43,000 --> 00:29:47,680
Costs, costs are one thing, some
guidance like probably and

576
00:29:47,680 --> 00:29:51,600
guidance and timing of the
guidance hopefully recoveries

577
00:29:51,600 --> 00:29:55,280
maybe but probably clear sight
also of whether this 4 million

578
00:29:55,280 --> 00:30:01,280
tonne expansion in 2027 is still
in the pipeline on ice or if

579
00:30:01,280 --> 00:30:04,240
they're going to commit to that
or not, that's another thing so.

580
00:30:05,280 --> 00:30:07,960
Remind me again, 'cause I lost
track at one point it was gonna

581
00:30:07,960 --> 00:30:09,000
be 6,000,000 tonnes and then
they.

582
00:30:09,000 --> 00:30:12,240
No, no, no, it was only ever
gonna be, it was, it was gonna

583
00:30:12,240 --> 00:30:14,760
be 4-4.
But then when they when they did

584
00:30:14,760 --> 00:30:17,840
the yeah, the funding and
everything they sort of and with

585
00:30:17,840 --> 00:30:21,080
the lowering the prices, they
sort of put the four on ice just

586
00:30:21,080 --> 00:30:24,440
said we're gonna go for 3/3 the
four's and the four's still an

587
00:30:24,440 --> 00:30:26,200
optional thing.
They just weren't firmly

588
00:30:26,200 --> 00:30:28,000
committing to it like they were
previously.

589
00:30:28,000 --> 00:30:31,280
Yeah, Yeah.
And probably another one about

590
00:30:31,280 --> 00:30:35,560
what the, the product product
spec is going to be.

591
00:30:35,560 --> 00:30:38,040
So, and I'll get into that a bit
later.

592
00:30:38,040 --> 00:30:41,320
So because to my knowledge, like
we don't really definitively

593
00:30:41,320 --> 00:30:43,800
know yet when Lawn Town are
going to sort of get to this

594
00:30:43,800 --> 00:30:47,120
3,000,000 tonne per run, right.
And look how many tonnes of

595
00:30:47,120 --> 00:30:49,920
Spodcon that will entail.
So I think there was some

596
00:30:49,920 --> 00:30:54,440
comments around it being about 6
to 8 months or something after

597
00:30:54,760 --> 00:30:57,800
first production, which would be
sort of Q1 next year because I

598
00:30:57,800 --> 00:31:00,120
haven't started stopping yet.
I don't believe they're still

599
00:31:00,640 --> 00:31:02,880
doing all the development and
getting it all ready.

600
00:31:02,880 --> 00:31:07,120
So I think it's looking to be
the back end of the year when

601
00:31:07,120 --> 00:31:10,920
they start stopping or like
maybe yeah, like AQ four thing.

602
00:31:10,920 --> 00:31:14,600
So that'll obviously say the
bloody tonnes really lift

603
00:31:14,600 --> 00:31:16,280
towards that 3,000,000 tonne run
rate.

604
00:31:16,280 --> 00:31:18,200
So I've heard, I've heard they
might be able to get there

605
00:31:18,200 --> 00:31:21,880
earlier than Q1 next year.
So that'll be.

606
00:31:22,880 --> 00:31:25,520
Impressive like.
Yeah, and I think it helps with

607
00:31:25,520 --> 00:31:30,680
the because it's big and bulky.
Like as long as they got the

608
00:31:30,680 --> 00:31:33,160
frigging part, there'll be that.
There's that many headings

609
00:31:33,160 --> 00:31:35,560
there, I think because it you go
and there's just fucking

610
00:31:35,560 --> 00:31:38,480
spodumain everywhere.
So it's and once you get it

611
00:31:38,520 --> 00:31:41,080
bloody get enough to develop
like you'll be able to RIP a bit

612
00:31:41,080 --> 00:31:44,120
out pretty quickly.
So and look, since that day of

613
00:31:44,120 --> 00:31:47,440
fast, there's anything I think
it was 2021.

614
00:31:48,200 --> 00:31:52,720
I think so much has changed when
we talk spodumain concentrate

615
00:31:52,720 --> 00:31:55,280
like for the status quo.
So because you know, back then

616
00:31:55,280 --> 00:31:58,320
it was everything was like
right, SC six equivalent.

617
00:31:59,080 --> 00:32:01,560
Most companies other than green
bushes were sort of aiming for

618
00:32:01,560 --> 00:32:07,720
that 5 1/2 SC 5.5.
But now you see sort of SC 5.2

619
00:32:08,120 --> 00:32:10,840
becoming what you consider
normal.

620
00:32:10,840 --> 00:32:12,680
Like that's what Pilgrim
Minerals is selling.

621
00:32:12,680 --> 00:32:15,640
So and this is what Lion Town
have sold in this.

622
00:32:15,640 --> 00:32:20,480
So I think Lion Town will be
weighing up the trade off of

623
00:32:20,480 --> 00:32:26,360
producing an SC 5.2 product,
which I assume has a lot more

624
00:32:26,360 --> 00:32:30,320
processing flexibility, probably
less margin for error versus

625
00:32:30,320 --> 00:32:35,320
having to fuck around to try and
get an SC 5.5 or better.

626
00:32:36,720 --> 00:32:40,080
And depend like and if people
wanting to buy the 5.2 and you

627
00:32:40,080 --> 00:32:44,120
can push more through and it's
easier and and you might you

628
00:32:44,120 --> 00:32:46,840
might get a better recovery.
Yeah.

629
00:32:46,840 --> 00:32:49,480
So it'd be interesting to see if
we get a bit of commentary

630
00:32:49,480 --> 00:32:50,680
around that.
So I.

631
00:32:50,880 --> 00:32:53,560
I heard Maddie that the the
benchmark, the fast markets

632
00:32:53,560 --> 00:32:57,280
benchmark is, is going to be
changed to SC 5.

633
00:32:57,400 --> 00:32:59,200
Yeah, that makes sense, doesn't
it?

634
00:32:59,400 --> 00:33:03,800
Yeah, because like why have a
benchmark that only one mine or

635
00:33:03,800 --> 00:33:08,240
sometimes 0 mines is producing?
They're easier on the maths.

636
00:33:08,240 --> 00:33:10,000
So.
So, yeah.

637
00:33:10,000 --> 00:33:12,600
So that, that'll be interesting
to see how that all works

638
00:33:12,640 --> 00:33:16,680
because you know, it does.
That does throw out all the, you

639
00:33:16,680 --> 00:33:19,240
know, from their DFS figures,
the amount of concentrate

640
00:33:19,240 --> 00:33:22,160
produced on their old numbers.
Because if you look at, I'll

641
00:33:22,160 --> 00:33:24,480
bring up the charts here, if you
look at the DFS figures, like

642
00:33:24,480 --> 00:33:28,400
two and a half million tonne per
annum gave around 540,000 tonne

643
00:33:28,400 --> 00:33:31,880
of dry metric tonne SC 6
equivalents.

644
00:33:31,880 --> 00:33:34,040
I remember, I, I think it was in
a fortnight today.

645
00:33:34,040 --> 00:33:38,600
So the wet metric tonne contains
about I think it's like 9.3%

646
00:33:38,600 --> 00:33:40,760
moisture.
So that's right.

647
00:33:40,760 --> 00:33:42,960
When you convert it back to dry
metric tonne, that's how it

648
00:33:42,960 --> 00:33:45,040
works.
So I look 3,000,000 tonne should

649
00:33:45,040 --> 00:33:49,560
give around 650,000 tonne per
annum of SC six equivalent.

650
00:33:49,560 --> 00:33:54,520
But if they're selling 5.2%
instead of 650,000 tonne, you'd

651
00:33:54,520 --> 00:33:58,760
need 750,000 tonne to be sort of
in line with those DFS numbers.

652
00:33:58,760 --> 00:34:01,440
So I'm sure there's a bit of a
balance and act I'll be

653
00:34:01,440 --> 00:34:04,240
interested to say if the once I
start punching through all the

654
00:34:04,520 --> 00:34:07,800
the underground feed like from
the honeypot areas, which is

655
00:34:07,800 --> 00:34:12,520
probably high grade, what effect
that has on the whole, you know,

656
00:34:12,520 --> 00:34:17,000
recoveries in the spodumain
concentrate grade, if that's a

657
00:34:17,360 --> 00:34:21,000
if that's a thing or not.
So because if you go off what

658
00:34:21,000 --> 00:34:25,960
they've produced so far, 28,000
wet metric tonnes since 31st of

659
00:34:25,960 --> 00:34:28,880
July.
So that's 25,000 drive metric

660
00:34:28,880 --> 00:34:31,840
tonnes in two months, about 12
1/2 thousand tonne a month so

661
00:34:31,840 --> 00:34:33,920
far.
They're in ramp up, obviously in

662
00:34:33,920 --> 00:34:37,159
ramp up with the open pit feed
because the run rate they'll be

663
00:34:37,159 --> 00:34:40,840
chasing, they'll need to be
around above 50,000 tonne per

664
00:34:40,920 --> 00:34:42,440
month.
So about four times what they're

665
00:34:42,440 --> 00:34:45,880
currently doing.
But I feel and but I feel like

666
00:34:45,880 --> 00:34:50,239
if they're already committing
spod into the spot market, you,

667
00:34:50,840 --> 00:34:52,960
you would, you would think
they'd be confident enough that

668
00:34:52,960 --> 00:34:55,280
they're going to be able to
fulfil their off take

669
00:34:55,280 --> 00:34:58,160
requirements if they're already
selling into the spot market as

670
00:34:58,160 --> 00:34:59,600
well.
So because if you look at the

671
00:34:59,600 --> 00:35:03,680
amount they have contracted to
LG, Tesla and Ford, looks like

672
00:35:03,680 --> 00:35:06,560
their minimal contractual
commitment for year 1 is about

673
00:35:06,560 --> 00:35:10,400
265,000 tonnes of spodcon.
There was there was another off

674
00:35:10,400 --> 00:35:13,280
taker that came in late as well.
I think it's a Chinese entity

675
00:35:13,280 --> 00:35:15,440
that took a little.
Bit a little bit extra during

676
00:35:15,440 --> 00:35:19,640
ramp up, yeah, Yeah.
So it looks like, so pretty much

677
00:35:19,640 --> 00:35:23,680
double what they're pumping out
now for this first two months is

678
00:35:23,680 --> 00:35:25,680
what's actually contracted,
right.

679
00:35:26,360 --> 00:35:28,640
So they're obviously must be
pretty confident they're going

680
00:35:28,640 --> 00:35:32,840
to be able to fulfil all that by
that, Cos I think there's a 10%

681
00:35:32,840 --> 00:35:39,240
variance on, on the, on the LG
one and the Ford 1.

682
00:35:39,520 --> 00:35:42,720
So they can go 10% under those
numbers if they need to.

683
00:35:42,720 --> 00:35:46,480
So it'll be once this all comes
out, it'll be like it'll be

684
00:35:46,480 --> 00:35:49,120
interesting to see all the sell
side models being updated with

685
00:35:49,120 --> 00:35:52,000
the cost guidance at these
prices.

686
00:35:52,360 --> 00:35:55,960
Like, you know, because always
plenty of rumours were

687
00:35:55,960 --> 00:35:59,160
circulating in the past like
month, month or so, and probably

688
00:35:59,160 --> 00:36:02,680
before the cattle announcement
of the Lupita like mine shutting

689
00:36:02,680 --> 00:36:04,520
down.
But like thinking like God is,

690
00:36:05,120 --> 00:36:07,400
are we going to see any further
curtailments?

691
00:36:07,400 --> 00:36:10,720
So I think on the back of, you
know, that cattle announcement,

692
00:36:10,720 --> 00:36:14,760
probably this updated mine plan
probably should house away those

693
00:36:14,760 --> 00:36:17,240
rumours for them hitting the
pause button.

694
00:36:17,240 --> 00:36:22,520
I would imagine I because I get
in terms of the finance side of

695
00:36:22,520 --> 00:36:25,720
things, when that LG convertible
note was announced, so it said

696
00:36:25,720 --> 00:36:30,040
they had like $381 million of
liquidity after another 120

697
00:36:30,040 --> 00:36:34,040
million remaining capital costs.
So and they've got, they do

698
00:36:34,040 --> 00:36:37,440
obviously they've got the $550
million of debt with Ford and LG

699
00:36:37,440 --> 00:36:40,200
convertibles.
So you'd think, I think they can

700
00:36:40,200 --> 00:36:43,240
call on another 100 mil of debt
from LG if needed.

701
00:36:43,240 --> 00:36:47,520
So but you'd, yeah, obviously
got a bit of cash to say them

702
00:36:47,520 --> 00:36:48,400
through.
They're not even bloody.

703
00:36:48,400 --> 00:36:50,960
It's not that we've got 50
million bucks left or anything,

704
00:36:51,160 --> 00:36:53,200
just a real shit time to start a
Lithium 1.

705
00:36:53,280 --> 00:36:56,360
Yeah, it's it's like, you know,
they're going to have like while

706
00:36:56,360 --> 00:36:59,040
the market is where it's at,
they're going to have a period.

707
00:36:59,040 --> 00:37:01,040
It's just like how long is the
period going to be where the

708
00:37:01,040 --> 00:37:04,640
costs are going to be greater
than what they they're able to

709
00:37:04,640 --> 00:37:07,080
sell their product for, right.
And it's like that's the whole

710
00:37:07,080 --> 00:37:10,760
equation for for Lion Town is
like, you know, how long is that

711
00:37:10,760 --> 00:37:13,040
period going to be?
Yeah, I suppose.

712
00:37:13,640 --> 00:37:16,040
I suppose you want, yeah, it's a
tough one.

713
00:37:16,040 --> 00:37:18,000
You don't.
You want high prices when it's

714
00:37:18,000 --> 00:37:19,200
low.
But if you're going to pick a

715
00:37:19,200 --> 00:37:20,840
time to have low prices, you
want to.

716
00:37:21,160 --> 00:37:23,000
You probably want them when
you've got the least amount of

717
00:37:23,000 --> 00:37:26,160
product coming, being produced,
if you've got enough money to

718
00:37:26,160 --> 00:37:28,960
see you through.
Yeah, the the the best, the best

719
00:37:28,960 --> 00:37:31,560
thing is having.
Early cash flows, yeah, outweigh

720
00:37:31,600 --> 00:37:34,440
a lot.
Pay back your debt and all that

721
00:37:34,440 --> 00:37:35,600
sort of stuff.
Riskier, but.

722
00:37:35,720 --> 00:37:39,680
It'll be better later on, Yeah.
So that'll be good.

723
00:37:39,680 --> 00:37:42,640
I'll be interested to see if
that I don't know if it's coming

724
00:37:42,640 --> 00:37:45,120
out next week, but I don't think
it's this week or better.

725
00:37:45,240 --> 00:37:48,400
I don't think it's too far away
and especially on the back of

726
00:37:48,400 --> 00:37:53,360
sort of Y JS comments in in the
last week, which is probably the

727
00:37:53,360 --> 00:37:57,640
first sort of semi bullish
episode we've done around

728
00:37:57,640 --> 00:38:01,400
lithium in in recent times.
Yeah, it'd be good to say a bit

729
00:38:01,400 --> 00:38:03,760
of a turn around it'd.
Be great.

730
00:38:03,760 --> 00:38:08,800
I think like, yeah, calling,
calling lithium market has

731
00:38:08,800 --> 00:38:12,160
bottom versus calling like, you
know, it's gone parabolic again,

732
00:38:12,160 --> 00:38:14,680
a very different sort of calls.
Just because the lithium

733
00:38:14,680 --> 00:38:17,320
market's bottom doesn't mean
that lithium prices go to the

734
00:38:17,320 --> 00:38:19,240
moon again.
It just sort of things can

735
00:38:19,520 --> 00:38:21,800
things can stay bottomed out for
a while and it's just sort of

736
00:38:21,800 --> 00:38:25,320
grind sideways slightly higher
over over an extended period of

737
00:38:25,320 --> 00:38:25,680
time too.
Oh.

738
00:38:25,760 --> 00:38:30,360
Mate, that just take that take
1200 yeah like invited that all

739
00:38:30,680 --> 00:38:33,200
all they wants.
They just want lithium to go up

740
00:38:33,200 --> 00:38:36,200
50% effectively.
Not asking for a lot.

741
00:38:36,200 --> 00:38:38,800
Not asking for much.
We just want it up 50%.

742
00:38:39,080 --> 00:38:41,560
But yeah, but that isn't that an
amazing thing to say.

743
00:38:41,560 --> 00:38:44,600
Like, yeah, it doesn't sound
like much that it has to get

744
00:38:44,600 --> 00:38:47,440
back to 1200, but that is 50%
higher than what it is now.

745
00:38:47,440 --> 00:38:49,560
It's kind of crazy.
The idea is like to ask a

746
00:38:49,560 --> 00:38:51,280
commodity price to do that.
Yeah.

747
00:38:51,280 --> 00:38:54,560
It's like saying rare earths, we
needs to go back to 60 or 70.

748
00:38:55,360 --> 00:38:58,680
But yeah, it'll be like saying
iron ore should go to plus 200,

749
00:38:58,680 --> 00:39:01,080
yeah.
Yeah, yeah, it's, yeah.

750
00:39:01,160 --> 00:39:05,280
But the the as you said, it's
just that historic anchoring to

751
00:39:05,280 --> 00:39:12,480
those to the mania prices.
So, yeah, but I'm in terms of I

752
00:39:12,480 --> 00:39:16,680
guess doubts and sort of like
the confidence in what they're

753
00:39:16,680 --> 00:39:19,800
doing there.
Grainlands are on site there.

754
00:39:20,560 --> 00:39:23,440
They've done some work there.
Are they Grainlands equipment?

755
00:39:23,680 --> 00:39:27,560
Yeah, so mate, it's all good.
You got water specials there,

756
00:39:27,560 --> 00:39:30,960
like Greenlands equipment, like,
whoa, Jesus Christ, like having

757
00:39:31,000 --> 00:39:35,360
a comfortable blanket put over
your proverb proverbially.

758
00:39:35,360 --> 00:39:37,480
So what did they make everything
safe now?

759
00:39:37,680 --> 00:39:40,120
What did they do?
I think they're doing some bit

760
00:39:40,120 --> 00:39:43,440
of Poly work, yeah.
So yeah, right.

761
00:39:43,600 --> 00:39:44,640
Bloody.
I wouldn't.

762
00:39:44,640 --> 00:39:45,840
I don't have any doubts about
the Poly work.

763
00:39:45,960 --> 00:39:48,560
Ohh right not not at all.
The amount of the amount of MD's

764
00:39:48,560 --> 00:39:51,280
I'm speaking to lately after
listening to when they listen to

765
00:39:51,280 --> 00:39:53,800
the Greenlands, I'd say like
Jesus cross.

766
00:39:53,800 --> 00:39:56,520
They sound like a perfect fit
for our operation.

767
00:39:56,680 --> 00:39:58,240
Yeah, but they were the exact
words.

768
00:39:58,240 --> 00:40:01,960
That's because they are.
So turnkey mine water management

769
00:40:01,960 --> 00:40:04,600
specialist, when I say turnkey
mine water management, I don't

770
00:40:04,600 --> 00:40:07,680
have to go through the website
each individual thing.

771
00:40:07,680 --> 00:40:10,320
It just means everything.
Yeah, everything water.

772
00:40:10,400 --> 00:40:13,520
Like name a random water thing
that you would require on your

773
00:40:13,520 --> 00:40:14,920
mind site.
A Mount Franklin vending

774
00:40:14,920 --> 00:40:16,040
machine.
Yeah, they do that.

775
00:40:16,480 --> 00:40:21,080
Yeah, guaranteed it's turnkey.
So look, look at the clients,

776
00:40:21,080 --> 00:40:23,520
Genesis, Minres, Pantoro,
Northern Star.

777
00:40:23,520 --> 00:40:26,280
And Speaking of Northern Star
mate, they've done 3 separate

778
00:40:26,280 --> 00:40:28,920
sites there, Karasuddin, Moon
Pit and Thunderbox.

779
00:40:29,120 --> 00:40:32,880
So it obviously they've done one
job and Northern Star were like,

780
00:40:32,960 --> 00:40:35,040
shit, how good were they?
Let's get them back for another

781
00:40:35,040 --> 00:40:36,440
one.
They've done the second one.

782
00:40:36,440 --> 00:40:37,840
They're like holy snap and duck
shit.

783
00:40:37,840 --> 00:40:39,760
They did the second one better
than the first one.

784
00:40:39,920 --> 00:40:41,320
We'll get them in for a third
one.

785
00:40:41,640 --> 00:40:43,040
Like what?
A customer review.

786
00:40:43,760 --> 00:40:47,600
Beautiful mate.
The Cobar comeback kid.

787
00:40:48,080 --> 00:40:51,080
Kingston resources show The
Cobar.

788
00:40:51,480 --> 00:40:53,400
I was keen to have a chin wag
brief.

789
00:40:53,400 --> 00:40:56,320
Cobar is the family.
Kingston is a child, you'd say.

790
00:40:57,040 --> 00:40:58,800
Yeah, yeah, I suppose you could
say that.

791
00:40:59,760 --> 00:41:03,400
Yeah, right.
So this morning, Kingston, they

792
00:41:03,400 --> 00:41:06,000
came out with an, an updated
kind of mine plan.

793
00:41:06,040 --> 00:41:08,680
I'm I'm getting curious about
Kingston for a couple of reasons

794
00:41:08,680 --> 00:41:10,080
#1 Cobar.
We just.

795
00:41:10,160 --> 00:41:13,360
We love talking about the cobar
#2 was, I remember our chat with

796
00:41:13,360 --> 00:41:17,160
Dan Porter last year and his his
Pure Resource Fund has they've

797
00:41:17,160 --> 00:41:20,680
kind of lent this company $15
million now.

798
00:41:20,680 --> 00:41:23,280
So Kingston's going to have to
pay that back and.

799
00:41:23,280 --> 00:41:25,320
Kind of lent it or like
literally lent it.

800
00:41:26,000 --> 00:41:28,320
No, they've lent it.
They've lent it yeah, they,

801
00:41:28,440 --> 00:41:30,360
they, they don't con notes
though.

802
00:41:30,360 --> 00:41:32,360
So what they do is they lend
them money which needs to be

803
00:41:32,360 --> 00:41:35,480
prepaid, but they'll get a
truckload of out of the money

804
00:41:35,480 --> 00:41:37,800
options too.
Yeah, yeah, yeah.

805
00:41:37,800 --> 00:41:40,800
And the third reason is our good
friends of the show at Delphi or

806
00:41:40,800 --> 00:41:42,120
Deutsche Ballot.
And you might know the most

807
00:41:42,120 --> 00:41:45,560
they've they've kind of etched
up their their shareholding from

808
00:41:45,560 --> 00:41:47,680
12 1/2 to 15% on the register
too.

809
00:41:48,400 --> 00:41:51,400
So today, like this funky
announcement that they they put

810
00:41:51,400 --> 00:41:53,480
out together with a bit of a
Schmicko presentation.

811
00:41:53,600 --> 00:41:57,080
It's essentially a reserves
update, but the gist of it is

812
00:41:57,080 --> 00:42:01,200
spun like a a mine life update
for their Mineral Hill project,

813
00:42:01,720 --> 00:42:03,360
Kingston.
They they acquired Mineral Hill

814
00:42:03,800 --> 00:42:06,000
in 2022.
They they processed the tailings

815
00:42:06,000 --> 00:42:08,960
through the plant as they were
sort of wrapping together a mine

816
00:42:08,960 --> 00:42:10,840
plan for the for the rest of the
resource.

817
00:42:11,520 --> 00:42:14,240
Two months ago they started
running open pit material

818
00:42:14,480 --> 00:42:17,600
through the mill and they
reckon, they reckon, you know,

819
00:42:17,600 --> 00:42:19,920
the mill kind of hit full
capacity there two weeks ago.

820
00:42:19,920 --> 00:42:23,720
It's a, it's a small meal.
But under the, the updated mine

821
00:42:23,720 --> 00:42:26,760
plan drop today, they suggest
open pit material will run

822
00:42:26,760 --> 00:42:29,400
through the mill until the back
end of FY20 6.

823
00:42:29,760 --> 00:42:31,240
That's when Underground will
take over.

824
00:42:31,520 --> 00:42:33,240
So there you go, Maddie,
there's, there's an underground

825
00:42:33,320 --> 00:42:34,880
contract that's going to be up
for grabs.

826
00:42:34,880 --> 00:42:37,240
Development, development work.
Development work's going to kick

827
00:42:37,240 --> 00:42:40,000
off on the underground next year
there.

828
00:42:40,360 --> 00:42:42,160
But I know there's not, not too
many of them coming up.

829
00:42:42,160 --> 00:42:45,960
So people want to watch out for,
it's a, it's a, it's, it's only

830
00:42:45,960 --> 00:42:47,920
a 400,000 tonne per annum meal.
So it's, it's kind of

831
00:42:47,920 --> 00:42:52,040
interesting how the reserves
update today, it included this

832
00:42:52,160 --> 00:42:56,920
production target based on only
51% of the reserves as I've

833
00:42:56,920 --> 00:43:00,520
highlighted here, 51% of
reserves, 11% M and I and then

834
00:43:00,520 --> 00:43:03,120
38% inferred.
I think a lot of companies to

835
00:43:03,120 --> 00:43:06,240
get pulled up by ASX for they
put a mine scenario up that has

836
00:43:06,240 --> 00:43:09,200
too much inferred in the mine
plan and then ASX says you can't

837
00:43:09,200 --> 00:43:11,960
do this.
So I imagine when I see this

838
00:43:11,960 --> 00:43:15,320
sort of thing, I imagine that's
why this announcement doesn't

839
00:43:15,320 --> 00:43:18,400
include any NPV for this six
year mine plan.

840
00:43:18,600 --> 00:43:21,560
If you look at the fine print,
they, they do say that they ran

841
00:43:21,560 --> 00:43:24,760
a version of their financial
model which included only the

842
00:43:24,760 --> 00:43:26,880
reserves.
So none of none of the you know,

843
00:43:26,880 --> 00:43:31,480
none of their their resources,
just the reserves case in which

844
00:43:31,480 --> 00:43:35,040
they say was NPV positive,
demonstrating economic

845
00:43:35,040 --> 00:43:37,720
viability.
So if that fills you with

846
00:43:37,720 --> 00:43:41,080
confidence on just the reserves
NPV positive, they don't put a

847
00:43:41,080 --> 00:43:44,440
number there, but.
I think everyone's just trying

848
00:43:44,440 --> 00:43:47,680
to find where the ASX line is.
Let's just Chuck keep a

849
00:43:47,680 --> 00:43:49,200
different shit in and see what
it.

850
00:43:49,200 --> 00:43:51,840
Depends who your advisor is like
that you have there.

851
00:43:51,840 --> 00:43:55,240
You can't argue with ASX, but
there's a lot of different ways

852
00:43:55,240 --> 00:43:59,320
that, you know, the companies
are trying to, yeah, convey what

853
00:43:59,320 --> 00:44:01,800
they want to convey on the work
they've done at these like

854
00:44:01,800 --> 00:44:05,800
projects within the the confines
of what the ASX home permits.

855
00:44:06,360 --> 00:44:09,800
Need to get all the MD's in a
WhatsApp chat just to bloody so

856
00:44:09,800 --> 00:44:12,960
they can share what they what
what they got pulled up on Tron

857
00:44:13,120 --> 00:44:16,040
Tron the WhatsApp ASX line they.
Probably.

858
00:44:16,040 --> 00:44:19,080
They probably exists.
Yeah.

859
00:44:19,080 --> 00:44:21,840
Anyway, this is this is where
kind of Kingston I I think where

860
00:44:21,840 --> 00:44:24,440
Kingston fits into the regional
things and the cobar is the more

861
00:44:24,440 --> 00:44:26,480
interesting sort of story for
me.

862
00:44:26,480 --> 00:44:28,800
You see, like Talisman is is
next door.

863
00:44:28,800 --> 00:44:32,000
They had they've had expiration
success this year, AGC another

864
00:44:32,000 --> 00:44:35,480
exploration story this year.
See Alchemy on this map.

865
00:44:35,680 --> 00:44:38,520
Today they announced an earning
agreement with JOGMEC for their

866
00:44:38,880 --> 00:44:44,440
kind of lithium gold tenure in
near near Manor in WA mostly

867
00:44:44,600 --> 00:44:46,080
mostly focused on the lithium
for Jogmec.

868
00:44:46,920 --> 00:44:50,480
But there's like with with that
sort of in their pipeline now,

869
00:44:50,480 --> 00:44:52,800
does that mean that that, that,
you know, Kingston could

870
00:44:52,800 --> 00:44:56,760
potentially do a, a deal with
Alchemy's overflow tenure, which

871
00:44:56,760 --> 00:45:00,200
has a 342,000 oz gold equivalent
resource?

872
00:45:00,560 --> 00:45:04,160
I don't know.
The other 20% owner of that is

873
00:45:04,160 --> 00:45:08,480
develop mining, which is
interesting.

874
00:45:08,480 --> 00:45:10,240
There's there's a bit happening
in the region.

875
00:45:10,240 --> 00:45:14,360
Kingston's meal is pretty small
and like with, with $15 million

876
00:45:14,360 --> 00:45:18,680
in, in drawn debt, I'm, I'm
following it closely just to see

877
00:45:18,680 --> 00:45:22,440
how their cash position trends
because their CapEx isn't, you

878
00:45:23,000 --> 00:45:24,840
know, it's not, you know,
completely finished with the

879
00:45:24,840 --> 00:45:27,120
CapEx when you've still got, you
know, underground development

880
00:45:27,120 --> 00:45:28,800
that needs to be done in due
course and all that sort of

881
00:45:28,800 --> 00:45:31,160
stuff.
But hopefully they're making

882
00:45:31,160 --> 00:45:33,960
money on the open cut material
going through the mill at the

883
00:45:33,960 --> 00:45:36,080
moment.
They're they're also looking to

884
00:45:36,080 --> 00:45:40,080
get some coin in the door for
the sale of of Misima, which is

885
00:45:40,080 --> 00:45:42,400
the gold project in PNG.
But I remember them running a

886
00:45:42,400 --> 00:45:46,240
sale process on that in 2022,
which seemingly didn't amount to

887
00:45:46,240 --> 00:45:48,520
a deal.
I think like the best case for

888
00:45:48,600 --> 00:45:51,760
for Kingston, is it their kind
of cash flow positive already

889
00:45:51,760 --> 00:45:54,080
based on, you know, the, the
open pit material they're

890
00:45:54,080 --> 00:45:55,880
putting through the mill.
And that'll be, that'll be great

891
00:45:55,880 --> 00:45:58,760
for them because they could use
that money to do the underground

892
00:45:58,760 --> 00:46:01,000
development plus pay back the
debt and all that sort of stuff.

893
00:46:01,000 --> 00:46:03,840
But but until kind of the
quarterly comes out, which

894
00:46:03,840 --> 00:46:06,160
should be out in about a month's
time, it's pretty hard to get a

895
00:46:06,160 --> 00:46:09,920
read on on what the economics of
the sort of the mining scenario

896
00:46:09,920 --> 00:46:12,960
is at the moment.
It seems like you look at that

897
00:46:12,960 --> 00:46:17,440
map log, especially Mac.
Mac have named renamed to Mac

898
00:46:17,440 --> 00:46:19,840
copper.
Yeah, you'd think, you know,

899
00:46:19,840 --> 00:46:24,040
they're obviously looking.
I think every pill mining is

900
00:46:24,040 --> 00:46:27,080
probably the logical one there.
Like this is obviously gold.

901
00:46:27,080 --> 00:46:28,880
Predominantly gold.
Gold.

902
00:46:28,880 --> 00:46:30,440
Copper, yeah.
Little bit of copper, yeah, it

903
00:46:30,440 --> 00:46:32,280
looks like more gold miner you'd
say?

904
00:46:32,280 --> 00:46:35,680
Like is that an Aurelia thing on
the back of the lot once Darks

905
00:46:35,680 --> 00:46:38,640
has finished now, are they going
to be looking to get a bit of a

906
00:46:38,640 --> 00:46:39,840
rebirth or something?
Well.

907
00:46:40,640 --> 00:46:44,400
Came to see how I really get get
federation going now that that's

908
00:46:44,400 --> 00:46:50,400
all you know in motion.
Yeah, there's, there's, there's

909
00:46:50,400 --> 00:46:54,200
heaps in this region and not a
lot of MNA, sadly.

910
00:46:54,400 --> 00:46:56,640
I love to see a bit more MNA in
this region.

911
00:46:57,560 --> 00:46:59,560
It's long region's long
infrastructure.

912
00:47:01,120 --> 00:47:03,240
Yeah, a lot of short quality
projects though.

913
00:47:03,280 --> 00:47:04,920
Yeah.
And the the projects are all

914
00:47:04,920 --> 00:47:08,120
kind of sort of subscale ish.
So, you know, it's the whole

915
00:47:08,120 --> 00:47:11,080
kind of hub and spoke thing,
which is of a maligned, you

916
00:47:11,080 --> 00:47:14,360
know, model for as a mining
company in the 1st place.

917
00:47:14,360 --> 00:47:16,920
But there's, you know, there's
opportunity for the, for the

918
00:47:16,920 --> 00:47:19,840
lean kind of operators who who
sort of think differently and

919
00:47:19,840 --> 00:47:23,120
can kind of just get, you know,
get, get value additive deals

920
00:47:23,120 --> 00:47:25,800
done with neighbours who have,
who have resources and all that

921
00:47:25,800 --> 00:47:28,240
sort of stuff too.
Yeah.

922
00:47:28,280 --> 00:47:31,240
You have to sort of be
convincing and charismatic to

923
00:47:31,240 --> 00:47:33,240
get a few of those deals over
the line, I'd imagine.

924
00:47:33,440 --> 00:47:37,760
Yeah.
Yeah mate, bloody plenty of

925
00:47:37,760 --> 00:47:41,120
balls in the air at the moment.
Yeah, there are.

926
00:47:41,120 --> 00:47:42,640
It's a, it's a really
interesting time.

927
00:47:42,640 --> 00:47:46,400
I reckon like everything,
everything going on the the last

928
00:47:46,400 --> 00:47:50,080
few weeks in particular, I think
hopefully a bit more of a

929
00:47:50,080 --> 00:47:53,760
tailwind through our kind of
neck of the woods until until

930
00:47:53,760 --> 00:47:55,480
the end of 2024.
We'll kind of see.

931
00:47:55,520 --> 00:47:57,880
It's all the stuff that you
forget about that you don't

932
00:47:57,880 --> 00:47:59,520
expect.
Well, you know, you never know,

933
00:47:59,520 --> 00:48:02,320
we might just see a massive gold
M and a deal coming out in the

934
00:48:02,320 --> 00:48:04,360
next month.
Who knows?

935
00:48:04,360 --> 00:48:06,360
I.
Mean gold just in the background

936
00:48:06,360 --> 00:48:08,360
just keeps going from strength
to strength, hey?

937
00:48:09,280 --> 00:48:14,760
Yeah, let's not forget that.
Hey, Jodie.

938
00:48:15,560 --> 00:48:18,400
That's it.
Right, I haven't forget that.

939
00:48:18,400 --> 00:48:21,240
Oh haven't forgotten Axis Mining
technology.

940
00:48:21,240 --> 00:48:25,000
Love your bloody work and our
great friends of the rest of the

941
00:48:25,000 --> 00:48:28,800
bloody Partners.
Mineral Mining Services Verify

942
00:48:29,120 --> 00:48:30,840
Adia.
Get your trip tickets for Drill

943
00:48:30,840 --> 00:48:34,760
24.
Everyone don't forget previously

944
00:48:34,760 --> 00:48:38,000
DSI Underground, now the CNB
Ground Support Division,

945
00:48:38,280 --> 00:48:42,240
Silverstone, CRE Insurance,
Greenland's Equipment, K Drill

946
00:48:42,680 --> 00:48:44,400
and here goods a Bloody Spark
chart.

947
00:48:45,360 --> 00:48:47,920
Hello to row fellas.
Hello to Row Money Miners.

948
00:48:49,240 --> 00:48:51,760
The information contained in
this episode of Money of Mine is

949
00:48:51,760 --> 00:48:53,960
of general nature only and does
not take into account the

950
00:48:53,960 --> 00:48:57,560
objectives, financial situation
or needs of any particular

951
00:48:57,560 --> 00:48:59,600
person.
Before making any investment

952
00:48:59,600 --> 00:49:02,680
decision, you should consult
with your financial advisor and

953
00:49:02,680 --> 00:49:05,800
consider how appropriate the
advice is to your objectives,

954
00:49:06,000 --> 00:49:08,000
financial situation and needs.