WA Footy Metal Index
So it would seem, that the clock has ticked into a new phase of the mining boom and bust cycle that seems to be with a feeling of optimism washing over the industry ...
I was thinking the other day about the "good old days" when the super cycle was in full swing, and contrasting that against times in my life when my footy team that I support, the mighty West Coast Eagles where at the top of their game. In recent weeks the West Coast Eagles have strung together a massive 10 straight wins, something not seen since 2007. Back when names like Cox, Kerr, Cousins and Judd rocked the midfield. They won the flag the year before in 2006. Back in those days Iron ore was booming too, with 2007 came the start of the super cycle and terms like "Stronger for Longer". So it was with my two passions in mind, being footy and mining I decided to see if there was any direct correlation to my euphoric state of mind at present and tipping the West Coast Eagles to win the flag in September this year.
I found to my surprise that the Iron ore price % change in AUD terms tracks reasonably well with the number of wins that West Coast have had. Perhaps some might go as so far to say that the West Coast wins premediates what the Iron ore price is. The mighty West Coast Eagles are price makers, not price takers. "We're the big birds, kings of the big game".
Not to leave out the cross town rivals the Fremantle Dockers, whom haven't had the same level as success as the Eagles. I decided to apply a bit more of a "hot and cold" metal, Nickel. Using the same process of tracking the number of Dockers wins and the Nickel price % change in AUD terms. I found that indeed the hot and cold Fremantle Dockers tracks very well with the change in Nickel price.
So with the Eagles 10 straight wins, my tip is that the Iron ore price is set to rise again in the next year. The Dockers on the other hand having 4 wins to date this season, my prediction is that the Nickel price is set to remain flat in the short term, but volatile in the long term.
Perhaps you might have some suggestions about the Western Force, Perth Glory, Lithium and Diamonds?
Happy footy tipping this week!
Regards
Moxy
Senior Mining and Construction Leader | Developing Critical Minerals Resources Across the Globe.
4 年Wildcats and Bauxite!!
Peter
6 年Go Crows!
Business Growth & Marketing Manager at Watco
6 年Neil Hamel thought you would like this one mate
Environment Manager / Director @ SignificantENV (Mining Industry clients)
6 年Can’t put Eagles and Dockers in the same basket - the later is a rubber product
Miner Extraordinaire
6 年Vanadium and Western Force. They are built into a world class act, only to then be bought out and literally dismantled by corporate ie Xstrata and Windamurra.