Ecclestone on the lithium phenomenon and the future for uranium
Christopher Ecclestone of London-based Hallgarten & Co is not afraid of bold calls. He was one of the first analysts in 2011 to suspect that the rare earths boom might not last too long. Lately he has made very bullish forecast for zinc, lead and copper.
He will be in Toronto for the Cleantech and Technology Metal Summit May 10th and May 11 — to access the agenda, see below…
Get our daily investorintel update
He hopes we may be seeing the end of many years of gloom that we’ve been having in the mining sector. He was encouraged last week by the fact that gold, silver and base metals all rose in unison. While Christopher is not suggesting the recovery is signed and sealed — too many people have made that mistake before — he is encouraged by the number of positive signals. “So maybe finally we’re breaking out of the swoon,” he adds.
In this interview with InvestorIntel publisher Tracy Weslosky, Christopher discusses his market outlook, especially the lithium phenomenon. He tells us how
- Sees some future for uranium; stocks are tight and all it needs is for China to finish building the many reactors now in construction
- Explains how industrial reactivation, along with severe underinvestment in recent years, is setting the scene for a zinc breakout
Tracy Weslosky: We know you’re following a number of technology metals. Can you give us a little bit of an update on what’s happening in the technology metals?
Christopher Ecclestone: All the focus is now on lithium. It’s almost an obsession with lithium at the moment, which I hope will spinoff — spill over into the other metals. As people make money on one, they’ll start saying, “what’s the next one?” or get the feeling that they’ve missed the boat on lithium. Certainly with some of the moves on the lithium space there is the temptation to think that there might be a pullback there, but people make money on one thing then they look around where to redeploy that money into the next thing. If everything is rising, I mean, that can have like a firestorm effect. It lifts a whole lot of boats at once. It could be interesting to see whether we might actually see some movement in some of these very battered spaces, like rare earths, which runs pretty much 50% on sentiment and 50% on reality. We may see that happen and then there’s uranium as well, which you could argue whether or not it’s a technology metal. It’s definitely an energy metal and is definitely in the dumpster and could well do with a lift. To access this video, click here ….
InvestorIntel is a trusted source of reliable information at the forefront of emerging markets that brings investment opportunities to discerning investors.