Core Insights - Questcorp Mining Inc. and Riverside Resources Inc. reported high-grade mineralization results from the La Union Project in Sonora, Mexico, including 20.2 g/t gold and 226 g/t silver over a 30 m continuous chip channel sample [1][3][4] - The Phase I exploration program has successfully supported the Carbonate Replacement Deposit (CRD) model and identified new sediment-hosted gold mineralization at the Luis Hill target [3][4][21] Exploration Results - The 30 m continuous chip channel sampling at the Union Mine area returned significant grades of 20.2 g/t gold, 226 g/t silver, and 2.7% zinc, indicating strong mineralization potential [1][7][8] - The total gold and silver represented by the sampling is 600 gram-metres gold and 6,780 gram-metres silver, reinforcing the project's viability [4][7] - The drilling program intersected CRD-style mineralization with favorable indications of zinc, silver, gold, and lead, consistent with historical mining in the region [7][19] Geological Context - The La Union Project's geological model is based on the South32 Taylor deposit, with drilling intersecting gold, zinc, and silver indications that suggest a major discovery potential [28] - The Luis Hill target has revealed previously unrecognized Carlin-like sediment-hosted gold mineralization, with a significant interval of 42 m at 0.3 g/t gold [20][21] Future Plans - The companies plan to organize a Phase 2 exploration program in H1 2026, focusing on follow-up drilling and additional geophysical and geochemical studies [30][31] - The encouraging results at both the Union Mine and Luis Hill warrant significant further exploration and drilling efforts [30][31] Company Background - Questcorp Mining Inc. is focused on acquiring and exploring mineral properties in North America, with a particular emphasis on precious and base metals [34] - The company holds an option to acquire a 100% interest in the La Union project, which spans 2,520.2 hectares in Sonora, Mexico [34]

Summary of Key Points from the Conference Call Industry Overview - The focus is on the **Aluminium** and **Copper** sectors within the **Australia Materials** industry, particularly in the context of the global mining sector [1][2]. Core Insights and Arguments - The **copper-aluminium ratio** is currently at approximately **4.1x**, which is two standard deviations above its 10-year average of **3.5x**. This is the highest level since February 2021, when it peaked at **4.3x** [2][3]. - Over the past period, aluminium prices have increased by around **80%**, while copper prices have risen by about **15%**. The rise in prices has been influenced by the **Russia-Ukraine conflict** [2]. - Recent strength in copper due to **supply disruptions**, **US stockpiling**, and **tight inventories** outside the US suggests that aluminium may also see price increases through **substitution** if copper demand remains strong. Substituting copper with aluminium becomes economically viable when the ratio exceeds **3.5-4.0x**, particularly in applications like **heating**, **air conditioning**, and **power transmission** for **electric vehicles (EVs)** [2]. - The commodity team projects aluminium prices to reach **US$3,250/t** by **2Q26**, driven by demand outpacing supply, with China's production cap of **45Mtpa** remaining in place and Indonesian smelters expected to ramp up production slower than consensus due to **power constraints** [2]. - **South32 (S32)** is highlighted as the most preferred investment with approximately **32% FY26e Aluminium EBITDA exposure** at spot prices, and it has moved to the 1 position in overall preference [2]. - **Rio Tinto (RIO.AX)** is rated as **Equal Weight (EW)** with an **18% spot CY26e Aluminium EBITDA exposure**, but is considered fully valued compared to **BHP**, which is rated **Outperform (OW)** [2]. Additional Important Insights - The **FY27/FY28e Free Cash Flow (FCF) yields** for South32 are projected at **3.8%** and **9.7%**, respectively, despite significant capital expenditures at its Hermosa and SG projects [2]. - Production at the **Mozal** facility is expected to continue at approximately **560kt**, counter to consensus expectations, although higher electricity costs are anticipated [2]. - The report includes a detailed **ASX Miners Relative Preference Table**, ranking various companies based on their investment thesis, upside/downside potential, and financial metrics [9]. Financial Metrics and Valuation - The report provides a comprehensive overview of **valuation multiples** and key metrics for ASX miners, including **Market Cap**, **EV**, **P/E**, **EV/EBITDA**, **FCF Yield**, and **Dividend Yield** for various companies [12][14]. - **BHP** and **Rio Tinto** are noted for their strong balance sheets and attractive commodity mixes, with BHP having a projected **P/E** of **14.1** and **Rio Tinto** at **13.5** for FY26 [12][14]. Conclusion - The aluminium sector is poised for potential growth driven by substitution dynamics and supply constraints, while specific companies like South32 are positioned favorably for investment. The overall outlook for the mining sector remains attractive, with various companies showing strong financial metrics and growth potential.

Market Overview - The Australian share market finished up on Friday, with the ASX 200 increasing by 0.5%, or 42.90 points, to 8903.90, marking a weekly gain of 1.6% after five consecutive days of increases, the longest winning streak since May 2025 [1] Technology Sector - Technology stocks performed strongly, driven by Taiwan Semiconductor Manufacturing's forecast of nearly 30% revenue growth in 2026, which exceeded analyst expectations and alleviated concerns regarding AI-related demand. Local tech stocks such as NextDC rose by 3.5% to $13 and Life360 by 1.7% to $29.23 [2] Banking Sector - Major banks contributed to the market rally, with Commonwealth Bank shares rising 0.5% to $154.30 and ANZ shares also up 0.5% to $37.52. National Australia Bank shares increased by 0.7% to $42.67, Westpac shares rose 1.8% to $39.19, and Macquarie shares were up 2.6% to $211.86 [3][2] Mining Sector - Shares in major miners experienced profit-taking after strong gains, with BHP shares falling 0.8% to $48.99 after a weekly rise of over 6%. This decline was influenced by a drop in oil prices following comments from US President Donald Trump regarding Iran [4] Energy Sector - Energy stocks also saw declines, with Woodside shares down 1.4% to $23.68 and Santos shares falling 1.6% to $6.23, reflecting the broader market reaction to falling oil prices [5] Company-Specific News - Capstone Copper shares surged 7.1% to $15.63 after meeting its annual copper guidance of 224,764 tonnes, a company record. Catalyst Metals shares climbed 14.7% to $9 following record quarterly production at Plutonic and positive broker reviews [6] - Conversely, Novonix shares dropped 15.8% to 42.5¢ after delaying the start of mass production of anode material for Panasonic Energy to the second half of 2027 [7] Upcoming Economic Data - The December labour force survey is expected to show an increase of about 35,000 jobs, maintaining the unemployment rate at 4.3% despite a projected rise in the participation rate [8] - In the US, the core personal consumption expenditures (PCE) price index is anticipated to rise by 2.8% year-over-year [9] - China is set to release various economic indicators, with the fourth-quarter GDP growth expected to be around 4.9%, aligning with the government's target of approximately 5% growth [10] - Australia will also see quarterly updates from several mining and energy companies, including BHP and Santos, while Wall Street will report fourth-quarter earnings from major firms like Netflix and Johnson & Johnson [11]

Industry Outlook - Morgan Stanley projects that the MSCI China Materials Index will outperform the MSCI China Index by 65 percentage points in 2025, driven by supply dynamics [1] - The index is expected to continue its outperformance in 2026 due to supply disruptions and increased merger activities [1] - The preference order for the Chinese basic materials industry in 2026 is copper/gold, aluminum, lithium, coal, and steel [3] Company Performance - China Hongqiao's rating is maintained at "Overweight," with the target price raised from HKD 34 to HKD 40, citing its integrated model as a cost advantage [1][4] - Zijin Mining is highlighted as a top pick for 2026 due to its exposure to copper and gold [4] - Jiangxi Copper's rating is upgraded to "Neutral," despite a recent stock price increase of over 40% [4] - Baosteel's rating is downgraded to "Neutral," while Angang Steel's rating is downgraded to "Underweight" due to expected declines in steel profit margins [4] Supply Chain Dynamics - Ongoing supply disruptions include maintenance at South32's Mozal aluminum smelter and a strike at Capstone Copper's Mantoverde copper-gold mine, which is expected to reduce copper supply by 77,000 tons [2] - The lithium market is anticipated to tighten due to strong energy storage demand, with more supply expected to come online in the second half of the year [3]

Core Viewpoint - The Slovak government aims to restart the Slovalco aluminum plant, which was once one of Europe's largest primary aluminum producers, to reduce dependence on non-European imports and address high electricity prices affecting competitiveness [1][2]. Group 1: Slovalco Plant Details - The Slovalco plant has a maximum capacity of approximately 200,000 tons per year and was closed in August 2022 due to high electricity prices that made production uncompetitive [1]. - The plant's carbon footprint is significantly lower than that of some current aluminum suppliers to Europe, being about one-fifth of theirs [1]. - Local management indicated that production could resume as early as summer if all necessary conditions are met [3]. Group 2: European Aluminum Market Context - Europe's primary aluminum capacity has shrunk to about 1.2 million tons annually after the closure of approximately 1.5 million tons of capacity, with 70%-80% of the annual demand of 6-7 million tons relying on imports, mainly from China and Africa [1]. - Recent supply challenges have arisen from production cuts in Iceland and Mozambique, which are significant aluminum import sources for the EU [4]. Group 3: Government Initiatives and Support - The Slovak government plans to sign a memorandum of understanding with Slovalco to ensure at least 10 years of continued aluminum production, which is the minimum timeframe needed for resuming operations [2]. - The government is advocating for EU-level solutions to address high electricity prices, including potential long-term exemptions from carbon emissions quota payments [2]. Group 4: Market Trends and Pricing - Aluminum prices increased by 11.8% from October to December, with the three-month aluminum price on the London Metal Exchange reaching $3,185 per ton as of January 12, reflecting a rise of $170 since the beginning of the year [5].

Core Viewpoint - The international price of aluminum is rising significantly, driven by strong demand as a substitute for copper, alongside concerns about electricity supply for aluminum smelting due to the increasing power consumption of AI data centers [2][4][9]. Group 1: Price Trends and Influencing Factors - The London Metal Exchange (LME) three-month futures for aluminum have shown a clear upward trend, surpassing $3,000 per ton on January 2 and reaching a peak of $3,138 per ton, the highest since April 2022 [4]. - The primary factor for the price increase is the significant rise in copper prices, which have seen a projected increase of 42% by 2025 due to supply-demand tensions [4]. - Investment funds are shifting towards aluminum, which has seen a more modest annual increase of 17% compared to copper [4]. Group 2: Electricity Consumption and Supply Concerns - Producing one ton of aluminum requires approximately 15,000 kilowatt-hours of electricity, equivalent to the annual electricity consumption of 3 to 4 average households [6]. - Concerns about electricity supply are becoming a reality, with companies like Rio Tinto considering shutting down the Tomago aluminum smelter in Australia due to rising electricity costs, which account for 40% of the country's aluminum production [6]. - South32 announced the suspension of operations at its smelter in Mozambique starting March 2026 due to significant increases in electricity supply contract costs [6]. Group 3: Competition for Electricity and Future Outlook - The International Energy Agency (IEA) predicts that global data centers' electricity consumption will more than double by 2030 compared to 2024, creating a competitive disadvantage for aluminum smelting plants [8]. - Major tech companies like Amazon and Microsoft are willing to pay over $100 per megawatt-hour for electricity, while aluminum smelting operations typically secure long-term contracts at around $40 per megawatt-hour [8]. - The environment for the aluminum smelting industry is becoming increasingly challenging, with predictions that aluminum prices could reach $3,200 per ton by 2028, and concerns that maintaining existing smelting operations may become difficult [8].

Core Viewpoint - The domestic electrolytic aluminum price reached 23,300 yuan/ton as of January 5, 2026, marking the highest level since March 2022 [4] Group 1: Price Trends and Market Dynamics - The copper-aluminum price ratio hit 4.49 on December 29, 2025, the highest since 2003, indicating a potential acceleration in aluminum replacing copper in certain sectors, particularly in the wire and cable industry due to its price advantage and favorable physical properties [5] - The domestic aluminum consumption structure is shifting, with transportation and power aluminum usage expected to rise from 19.7% and 15.0% in 2023 to 23.85% and 16.27% in 2025, respectively [7] - The total domestic aluminum consumption is projected to reach 57.37 million tons in 2026, maintaining a year-on-year growth of over 1.7% [8] Group 2: Supply Chain and Production Challenges - Overseas electrolytic aluminum supply is facing disruptions, with Century Aluminum's Iceland production line temporarily halting operations due to equipment failure, reducing its operational capacity from 317,000 tons/year to 105,700 tons/year [6] - South32's Mozal aluminum plant, with a capacity of approximately 600,000 tons/year, is expected to enter maintenance mode by March 15, 2026, due to unresolved power supply agreements [6] - The supply of bauxite remains constrained, with China's reliance on imports from Guinea increasing, which may impact the pricing of alumina in the future [9] Group 3: Policy and Regulatory Environment - The National Development and Reform Commission emphasized the need for better management and optimization in resource-intensive industries like alumina and copper smelting, reinforcing expectations against excessive investment and disorderly construction [9] - The ongoing development of national standards related to aluminum applications, such as the air conditioning heat exchanger standards, indicates a regulatory push towards enhancing aluminum's market position [5]

Group 1 - The copper-aluminum price ratio reached 4.49 on December 29, 2025, marking a new high since 2003, with potential acceleration in aluminum replacing copper in certain sectors [2][3] - In the wire and cable industry, aluminum poses a significant substitution threat to copper due to its price advantage and favorable physical properties [2] - New standards related to aluminum heat exchangers are being developed, indicating a shift towards aluminum in HVAC applications [2] Group 2 - There are disruptions in overseas electrolytic aluminum supply, with limited short-term capacity expansion due to issues like power supply agreements and infrastructure constraints [3] - A production line in Iceland faced a temporary shutdown, reducing its capacity significantly, and another facility in Mozambique is expected to enter maintenance due to unresolved power supply agreements [3] - The aluminum consumption structure is shifting, with increased demand from transportation and power sectors, and new growth points emerging from data centers and energy storage [4] Group 3 - Domestic and international policy expectations are solidifying the bottom for alumina prices, with the Chinese government emphasizing management and optimization in resource-intensive industries [5] - China's reliance on imported bauxite is increasing, with Guinea being the largest supplier, and potential market interventions could impact alumina pricing [5] - The forecast for domestic aluminum consumption in 2026 is 57.37 million tons, reflecting a growth rate of over 1.7% year-on-year [4] Group 4 - Companies to watch include Zhongfu Industrial, Yun Aluminum, and Shenhuo, which are expected to benefit from expanding aluminum profits [6] - China Aluminum and Nanshan Aluminum are highlighted for their potential rebound in alumina prices and high dividend expectations [6]

Group 1 - Venezuelan President Maduro and his wife appeared in a U.S. court, denying all charges and claiming he is still the president of Venezuela [3][5] - The Venezuelan government issued a decree to search for and arrest individuals supporting U.S. military actions, implementing emergency defense measures [7][8] Group 2 - U.S. President Trump threatened to increase tariffs on Indian products if India does not limit its purchase of Russian oil, with tariffs potentially rising to 50% [9][10] - Federal Reserve official Kashkari indicated that the Fed is close to stopping interest rate cuts, emphasizing the need for more data on inflation and the labor market [11] Group 3 - The geopolitical instability following the U.S. control of Maduro has led to a surge in gold and silver futures prices, with gold rising over 3% and silver over 7% [11] - The base metals sector saw significant gains, with copper up 4.19% and aluminum up 2.32%, driven by concerns over resource supply stability due to the Venezuelan situation [12][14] Group 4 - The domestic market for non-ferrous metals showed strong performance post-New Year, with aluminum prices rising due to supply concerns linked to the Venezuelan crisis [14][15] - The tightening supply of electrolytic aluminum is a key driver for rising aluminum prices, with domestic production capacity reaching its limit [15][17] Group 5 - Analysts express optimism for the long-term outlook of the non-ferrous metals sector, citing potential improvements in global liquidity and ongoing supply disruptions [17][18] - Despite the strong performance, there are warnings about potential short-term volatility due to weak demand and seasonal factors affecting aluminum prices [18]

Group 1 - Venezuelan President Maduro and his wife Flores appeared in a U.S. court, denying all charges and claiming they were kidnapped [19][21] - The Venezuelan government issued a decree to search for individuals supporting U.S. military actions, implementing emergency defense measures [6][22] - The decree was signed before Maduro's forceful control by the U.S. [23] Group 2 - U.S. President Trump threatened to increase tariffs on Indian products if India does not limit its purchase of Russian oil, with tariffs potentially rising to 50% [8][25] - The Federal Reserve's Kashkari indicated limited room for further interest rate cuts, emphasizing the need for more data on inflation and labor market conditions [9][26] Group 3 - The geopolitical turmoil from the U.S. controlling Maduro has led to a surge in gold and silver futures prices, with gold rising over 3% and silver over 7% [10][26] - The LME saw significant increases in copper (4.19%), aluminum (2.32%), nickel (1.09%), and zinc (2.17%) prices [10][27] Group 4 - The domestic futures market for non-ferrous metals experienced a strong rally, driven by concerns over resource supply stability due to the Venezuelan crisis [12][28] - The uncertainty in energy supply has heightened concerns in the aluminum industry, particularly for electrolytic aluminum, which is heavily reliant on electricity [29] Group 5 - The supply constraints for electrolytic aluminum are due to high domestic capacity utilization (96.5%) and limited overseas power resources [13][29] - The copper-aluminum price ratio has increased, leading to expectations of aluminum price increases as copper prices rise [30] Group 6 - Despite the strong performance of the non-ferrous metals sector, there are concerns about demand pressures due to high aluminum prices and seasonal consumption declines [15][31] - The future demand for aluminum may be positively influenced by developments in AI hardware, photovoltaics, and energy storage industries [30][31]