BOAB METALS LIMITED When investors think ofASX mining stocks, they often think of iron ore, gold and lithium. Lead traditionallyhasn't been the hot favourite- but that could all be changing!
Lead prices hit a four-year highin August 2022, nudging close to $3,800 (USD2,500) per tonne before stabilising around the $3,000 (USD1,985) mark. Lead futures, meanwhile, are on the up and up.
The promising price performance was buoyed by increased demand as the global economy picked up speed. And although there's talk of a recession overseas, Australian lead miners have remained largely unaffected by any short-term fluctuations.
Lead will be added to the Bloomberg Commodity Index benchmark next year. This is an exciting development for lead traders. The funds that trade the Bloomberg Commodity Index will now be able to get involved in trading in lead.
What's driving the lead price recovery? Industrial applicationsLead is a crucial ingredient in Australia's green energy future. Its use in battery storage technology, LCDs, cabling, and the medical sector is expected to increase demand in the coming years.
Global production is picking upChina, the world's largest lead consumer, looks set for a long-overdue economic rebound. The OECD predicts the country's growth will reach 4.9% in 2023. Boab Metals (ASX: BML) has a Joint Venture (JV) agreement with China's largest lead smelter, putting us in a uniquely favourable position among ASX lead miners.
Narrowing surplusAccording to the International Lead and Zinc Study Group (ILZSG), the global surplus of lead willshrink to just 17,000 tonnes this year, down from 69,000 last year. The tightening surplus is due mainly to slower output growth, with Russia's lead exports sanctioned by the EU and US lead production down 4% in 2021.
For the first time, China became a significant exporter in 2021. Thanks to ourJV partnership with Henan Yuguang Gold and Lead Co., Ltd, some of Boab Metals' lead will travel to China to meet increasing demand.
Snapshot of lead mining in AustraliaAustralia has37 million tonnes of lead reserves, making us the largest holder by a long way. China is second with 18 million tonnes.
So much metal means there are inevitably several lead miners on the ASX anda wealth of diversified mining stocksto choose from.
Australia is an attractive investment destination because of our political stability, strong safety record, andreputation as a global leader in mining technology. Altogether, it means more investors (both institutional and retail) are looking to ASX-listed lead miners.
3 reasons Australian lead could be one of the best ASX stocks to buy now 1. Strong outlookAlthough a price rise is never guaranteed, thelevel of investment flowing into lead futuresis a signal that many in the industry expect the recent momentum to continue.
2. ResilienceAustralian lead production was largely unaffected by the COVID-19 pandemic. So as the world emerges into a production phase, we're well-placed to meet demand.
3. Projects coming onlineSorby Hills is the largest undeveloped lead-silver deposit in Australia. More than 475,000 tonnes of payable lead reserves are expected to flow into the global supply over the mine's lifetime.
Boab Metals Limited aims to be the #1 choice for lead miners on the ASXBoab Metals Limited (ASX: BML) is poised to become the most exciting lead miners on the ASX andone of the talked-about mining stocks of 2023.
There's a lot to look forward to:
- High-grade lead-silver-zinc deposit
- JV partnership in place
- Offtake agreements expected soon after the definitive feasibility study
- Experienced and committed leadership team
- Clean power supply agreed
- The largest undeveloped mineral deposit among lead miners
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Boab Metals Ltd. published this content on 12 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 December 2022 13:22:10 UTC.
