The Drill Down
Monday 1 June 2026 · Part 2
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Presented By
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ASX: KAO
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Namibia's Copper Belt.
Ready to Drill.
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69.6%
Peak Cu Grade
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40km
Mineralised Trend
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89%
Cu Recovery
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Two fully permitted copper projects in Namibia, an emerging exploration jurisdiction on the radar of global miners. The Chalkos Project carries peak surface grades of 69.6% Cu and 2,030 g/t Ag across a 40km mineralised trend. Drilling commences soon.
Discover Kaoko
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Lead Insight
WA Resources Sector Delivers Decade-High Investment
Western Australia's resources sector recorded $226 billion in mineral and petroleum sales across 2025, alongside more than 136,000 full-time equivalent on-site jobs. Investment in the state's mining and petroleum industries hit $34 billion, the highest in a decade, while mineral exploration expenditure reached a record $2.7 billion. Iron ore led the sector with $126 billion in sales and an all-time export volume high of 889 million dry metric tonnes, while gold delivered record revenue on the back of strong global prices and production of 6.7 million ounces.
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Our Take
A $34 billion investment year with record exploration spend is the kind of number that resets the baseline. The question is whether the pipeline behind it, particularly in critical minerals, can sustain the momentum as lithium and nickel pricing recovers. Iron ore and gold carried 2025. The next decade needs a broader bench.
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Commodity Prices
Precious Metals (USD/toz)
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Gold
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$4,520
-0.45%
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Silver
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$76
+0.69%
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Platinum
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$1,946
+1.29%
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Palladium
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$1,375
+1.37%
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Base Metals & Commodities
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Copper USD/t
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$14,292.25
+0.91%
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Nickel USD/t
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$18,918.00
-0.69%
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Zinc USD/t
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$3,547.49
+0.21%
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Lead USD/t
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$2,016.70
+0.72%
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WTI Crude USD/bbl
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$90.03
+3.06%
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Prices updated as of 1 June 2026, 3:48 pm AEST
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Market Movers
Winners & Losers - ASX Markets
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Venus Metals Corporation Limited
Venus sold its 1.0% NSR royalty over the Youanmi Gold Project to Franco-Nevada for $46 million. The company intends to return approximately $35 million to shareholders via a cash special dividend and distribute a further ~25 million Rox Resources shares. The combined return represents ~$0.221 per share.
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Syrah Resources Limited
Syrah announced that Tesla has withdrawn its intent to terminate the Offtake Agreement for natural graphite active anode material from the Vidalia facility in Louisiana. Tesla accepted that Syrah has produced conforming AAM samples and made sufficient progress to cure the alleged default, though Tesla's right to terminate over final qualification not yet being achieved remains on foot.
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Strata Minerals Limited
Strata executed a binding Mining Services and Profit Share Agreement with BML Ventures for the Zelica Gold Project in WA. BML will fund and manage all development and mining activities, with net profits split 50:50 after cost recovery. BML will also invest up to $1.0 million in Strata shares at $0.0175, subject to shareholder approval.
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Brazilian Rare Earths Limited
No fresh catalyst today. The move follows a sustained run and appears to be profit-taking after a strong recent period. Most recent news was routine director interest notices. The company continues to advance its rare earths portfolio in Brazil.
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Encounter Resources Limited
No news catalyst today. Encounter continues to advance its Niobium-REE project in WA. The move appears technical in nature.
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Mithril Silver and Gold Limited
No news catalyst today. Mithril is currently drilling out its high-grade Au-Ag project in Mexico. The pullback appears technical with no company-specific trigger.
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Market data as of 1 June 2026, 4:10 PM AEST
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This Week's Poll
Which emerging mining region will attract the most exploration capital over the next 3 years?
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○ Saudi Arabia / Middle East
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○ Scandinavia / Greenland
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Today's Stories
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Reuters
China Builds World-Scale Rare Earths Education System to Lock In Dominance
Reuters has for the first time tallied the full scale of China's rare earths research and education system, revealing dedicated university programs spanning mining, metallurgy and exploration that are purpose-built to entrench the country's sector lead. The investigation shows China is building institutional depth that extends well beyond its existing export controls and supply chain dominance. For Western nations attempting to diversify critical minerals supply chains, the findings expose a structural disadvantage that cannot be closed quickly.
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Our Take
The export controls get the headlines. The PhD programs are the real moat. Western governments are funding projects. China is funding generations.
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Financial Times
Race for Rare Earths Sparks Concern About Environmental Damage From Mining Operations
The global race to secure rare earth supplies is generating growing concern about environmental damage from mining operations, according to a Financial Times investigation. Critics have accused QIT Madagascar Minerals, a subsidiary of a major mining group, of contaminating waterways with hazardous materials including uranium. The tensions highlight the challenge of balancing critical minerals security with environmental obligations.
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Our Take
An FT investigation naming a specific subsidiary over uranium contamination is the kind of ESG exposure that moves institutional capital and triggers project reviews, not a story that stays contained. As rare earth demand intensifies, environmental scrutiny of production assets will only sharpen, and companies without robust remediation frameworks are carrying unpriced reputational risk.
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Kitco
Gold Pullback Puts Rate Pressure and Mining M&A Back in Focus, Rick Rule Says
Gold's pullback below $4,500 an ounce has returned US interest rates to the centre of the market debate, according to veteran resource investor Rick Rule. Rule argues the more important development for mining investors is the pressure building on producers to replace ounces through acquisitions, pointing to an upcoming wave of M&A activity. Rule made the comments speaking with Kitco Mining's Digging Deep on May 27.
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Our Take
Rule's ounce-replacement argument is well-grounded, and with gold still at historically elevated levels despite the pullback, acquirers have the currency to move on mid-tier targets while valuations are briefly compressed. Investors holding quality development-stage gold assets should be paying close attention to who is building cash on their register.
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Reuters
Colombia Presidential Vote Could Reshape Copper Investment Landscape
Colombians are voting in what is likely the first round of a presidential election, with the outcome expected to have significant implications for the country's mining and copper investment climate. Candidates are divided between leftist pledges for deeper resource nationalism and right-wing platforms favouring investor-friendly frameworks. The result will be closely watched by mining companies with Colombian copper and coal assets.
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Our Take
Colombia sits on copper resources that the energy transition needs, and this election is a binary risk event for companies with assets in-country. A leftist win does not automatically kill projects, but it reprices permitting timelines and fiscal terms in ways that matter to NPV calculations.
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Kitco
Hong Kong's Share of Global Gold and Wealth Flows Rising Fast as China's Market Evolves
Hong Kong is rapidly expanding its share of global gold investment and wealth flows, leveraging its position at the intersection of Chinese and international capital markets. The latest data and projections suggest the trend is likely to accelerate in coming years as China's financial and economic influence grows. The city's role as a gold trading and storage hub is seen as increasingly central to China's broader commodity strategy.
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Our Take
Hong Kong's expanding gold role is a structural shift with long-term pricing implications, as more Chinese-linked capital flowing through a single hub concentrates demand signals in ways Western markets will need to track more carefully. For gold-focused funds, understanding Hong Kong flows is becoming as important as watching Comex positioning.
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Kamoa Capital
kamoacap.com
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This newsletter is for general information, education & entertainment. Kamoa Capital is not licensed and does not know your circumstances. Nothing here is financial, legal or tax advice — seek professional advice and read any PDS before acting. We aim for accuracy but make no guarantees and accept no liability. Views are opinions only and may include forward-looking statements that may not occur.
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