Rejuvenated Small Resources Index Up 70%
2016 played host to a significant resource sector rejuvenation – and all indications are that this momentum will be maintained into 2017.
Commodities were up strongly, right across the board in 2016. These include gold (up 17%), silver (up 21%), cobalt (up 32%), copper (up 33%), nickel (up 37), lead (up 47%), crude oil (up 55%), tin (up 62%), iron ore (up 85%), zinc (up 88%), and coking coal (up 250%) - along with lithium and graphite.
High-quality junior companies are once again able to raise funding for exploration,appraisal and development activities, markets are reacting positively to favourable company news, and share prices are continuing to move in the right direction. The proof of the pudding is in the eating - high-quality smaller companies have significantly outperformed the sector’s heavyweights. These smaller independent companies are also much more highly leveraged to the better-performing commodities.This is reflected in the Australian Small Resources Index graph below, which was up by 70% during 2016.