Germany Chancellor plans lithium deal with Serbia after Rio ruling
Olaf Scholz plans to visit Serbia this week to secure supplies of lithium that are critical for the nation’s energy transition and auto industry.
Julie Gordon of Gold Matters writes with recession fears weighing on equity markets, resource investors would do well to steer clear of speculative Canadian mining plays and put their cash into producing miners with strong balance sheets.
Leading market indicators are pointing to slowing global growth, which will likely lead to lower demand for resources as the construction and manufacturing sectors pull back.
Add to this, the cost of building and operating a mine is spiraling upward, while recession worries could lead banks and the equity markets to shy away from funding new projects.
This puts junior miners, especially those without any production yet, at a serious disadvantage as they don’t have the cash flows to build a mine, not to mention sustain their business.
It’s enough to make even the most seasoned investors swoon.
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