Every four years, two of the world’s biggest events take place simultaneously: the Olympic Games and the Diggers and Dealers Mining Forum.
The similarities are hard to dismiss: competitors vying to take out the top position, an intense focus on gold, and plenty of performance comparisons to prior years.
With dozens of presenters, hundreds of booths, and thousands of delegates hitting the ground in Kalgoorlie on Monday, the competition will be intense: not dissimilar to that in Paris currently.
Three days of companies jostling for the attention of brokers, bankers and investors, while showcasing their latest deals, acquisitions, production and exploration results to journalists and media outlets.
Last year, Azure Minerals (ASX:AZS) took out the top place as one of the most celebrated companies leading in to the 2023 event, due to headline-making drilling results which saw its share price skyrocket.
Azure quickly became the envy of other lithium-focused companies, so much so, that less than a year later the company was acquired by SQM and Hancock Prospecting for $1.7 billion.
This set the stage for lithium to be the commodity of choice for 2023, with three awards at the Diggers and Dealers WesTrac Gala given to lithium-focused entities including Pilbara Minerals (ASX:PLS) and Patriot Battery Metals (ASX:PMT).
The third award winner was Allkem: another Australian lithium company that in January 2024 merged with Livent in a US$10.6 billion deal to become a wholly owned subsidiary of US-headquartered Arcadium Lithium.
Unlike Olympic medallists who are forever etched into Australia’s history (think Kathy Freeman, Ian Thorpe, even Stephen Bradbury), lithium has lost its shine in the market.
This is despite Australia delivering 45% of the world’s lithium supply with production averaging at 21.3 kilo tonnes per year, and demand for electric vehicles, and the lithium-ion batteries needed to power them, continuing to grow as the pace of electrification speeds up.
Nickel’s performance on the track (or in this case, the global market) was not much better, to the point that some key players in the nickel production game are out of competition.
There’s no doubt the fall of BHP’s Nickel West and suspension of many nickel producing operations will be a hot topic at Diggers. Its mothballing has changed the odds for local nickel explorers and producers, with many looking to morph into multi-commodity players.
But it appears the Big Australian has quickly put Nickel West’s loss behind it, turning its focus to copper. BHP’s recent acquisition with Lundin Mining of South American copper company Filo Corp, worth US$2.9 billion, could result in the commodity emerging as a front runner for discussion at Diggers.
Much like the Olympic Bronze Medal, made of more than 90% copper and worth roughly US$13, the commodity’s value was higher than forecast for the first half of the 2024 calendar year, but like other battery metals, copper prices have since retracted in recent weeks.
This undulation of attraction to critical minerals is why it’s no surprise gold has emerged a frontrunner for investors. The precious metal is known as a bastion of stability and reliability during times of market turbulence.
Gold prices have enjoyed an upward trajectory through the Olympic cycle, currently peaking around US$2,300 an ounce. That’s nearly 20% higher than its peak price during 2021: the last year the Olympics were held.
As we edge closer to the conference starting line, conversation around gold is taking the lead and with 2024 still considered a M&A year, there is potential for big deals to be on the negotiating table at Diggers.
One to watch will be the back and forth between Spartan Resources (ASX:SPR) and its neighbour Ramelius Resources (ASX:RMS), which has steadily driven up its stake in the gold company this year.
With a 16.1 million tonne resource at an astonishing grade of 4.79 g/t gold, Spartan is becoming a podium topping competitor in the Australian gold exploration industry, as well as an attractive takeover option.
At a conference known for handshake agreements and closed-door deals, let’s see who takes out the gold for 2024.