The Drill Down
Monday 25 May 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
China Lithium Inventory Alert
Approximately 35,000 tonnes of lithium carbonate changed hands in the Chinese spot market over the past two weeks as hidden inventories were liquidated near the Yuan 200,000/tonne level. A crackdown on invoicing practices among traders also tightened liquidity. Mysteel expects China's lithium carbonate balance sheet to remain in a drawdown of nearly 10,000 tonnes in June, with LFP battery cell production schedules rising 3-4% month-on-month. A turning point in spot lithium ore supply is not expected until early July.
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Our Take
35,000 tonnes of hidden inventory dumped in two weeks explains the spot volatility. But Mysteel's survey points to a 10,000 tonne drawdown in June with ore supply staying tight until July. Once that overhang clears, the price floor is set by the lithium ore cost curve, not trader sentiment.
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Commodity Prices
Precious Metals (USD/toz)
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Gold
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$4,557
+1.05%
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Silver
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$78
+2.81%
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Platinum
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$1,963
+1.73%
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Palladium
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$1,384
+3.24%
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Base Metals & Commodities
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Copper USD/lb
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$6.44
+0.58%
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Nickel USD/lb
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$8.55
+0.68%
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Zinc USD/lb
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$1.61
+0.65%
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Lead USD/lb
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$0.91
+0.42%
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WTI Crude USD/bbl
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$90.99
-5.81%
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Prices updated as of 25 May 2026, 3:48 pm AEST
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Market Movers
Winners & Losers — ASX Markets
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Tasman Resources Ltd
Appointed Adam Turnbull to the board and secured a $4 million placement, providing fresh capital and a governance refresh for the explorer.
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Haranga Resources Limited
Delivered a maiden JORC resource of 402,000 ounces at 5.1 g/t gold at the Lincoln Gold Project, one of the highest-grade gold development opportunities on the ASX. The project has an existing underground decline, a processing plant that operated as recently as 2022, and mining permits in place.
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Coronado Global Resources Inc
Announced the divestment of the Logan Mining Complex in West Virginia. The US operations had been running at a loss with realised pricing below cash operating costs, and the sale sharpens the company's focus on its core Curragh complex in Queensland's Bowen Basin.
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Sunstone Metals Limited
Most recent news was a May 21 update confirming drilling continues to intersect mineralisation. The selloff suggests the market was expecting stronger results or a more definitive update from the programme.
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VHM Limited
Trading just above the $0.26 placement price from last month's $5 million institutional raise to advance the Goschen Rare Earth and Mineral Sands Project in Victoria. The stock is struggling to hold above the capital raise floor as broader rare earths sentiment cools.
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Arafura Rare Earths Limited
Received commitments for a $350 million placement to fund development of the Nolans rare earths project in the Northern Territory. The dilution from the raise is weighing on shares despite the strategic significance of the funding milestone.
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Market data as of 25 May 2026, 4:10 pm AEST
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This Week's Poll
How much would you pay per month if The Drill Down wasn't free?
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This Week's Research
Q3 FY26 ASX Producer Recap
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Twelve mid-tier ASX gold producers, one commodity environment and the spread between best and worst AISC is now wider than the gold price was 18 months ago. That dispersion is the story. Inside: the five Tier-1 calls, the bond market re-opening for lithium, the US$110/kg policy floor decoupling Lynas from China spot, and the Q4 catalyst calendar.
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Today's Stories
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Nikkei Asia
Pakistan to Deploy Paramilitary Force to Guard Copper-Gold Belt
Pakistan's Prime Minister has directed the deployment of paramilitary troops across Balochistan's Rakhshan Division, home to the multi-billion-dollar Reko Diq and Saindak copper-gold mines. The security corridor will include dedicated checkpoints, highway patrols and border posts along the Iran and Afghanistan frontiers. The move follows Barrick Mining's announcement of a comprehensive review of all aspects of the Reko Diq project after coordinated separatist attacks killed over 50 people in the province.
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Our Take
When your JV partner launches a "comprehensive review" after 50 people are killed, deploying paramilitary troops is the minimum viable response. Reko Diq is a world-class orebody trapped inside a world-class security problem. Until Barrick concludes that review, the project timeline carries a discount it cannot price away.
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Bloomberg
Egypt Eyes First Aerial Survey in 40 Years to Map Mineral Riches
Egypt is conducting its first comprehensive aerial mining survey in more than four decades, with Xcalibur Smart Mapping working alongside the country's Nuclear Materials Authority and local firm Drone Tech. The initiative uses advanced aircraft and geophysical technology to map a largely unexplored mineral resource base. The survey is positioned as a catalyst for new mineral discoveries and foreign investment.
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Our Take
A 40-year data gap on Egyptian geology is a material opportunity for early-mover explorers, and this survey will almost certainly generate newsflow that attracts junior capital into the country. Watch for project acquisitions and licensing activity to accelerate once preliminary results emerge.
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The Conversation
Australia Forcing Chinese Investors Out of Rare Earths Projects Creates New Financing Risks
Analysis of Australia's forced divestment of Chinese investors from rare earths projects, including Northern Minerals, warns the policy is creating material financing and development risks for the sector. Arafura Rare Earths announced its Nolans project in the Northern Territory would proceed around the same time, highlighting the tension between national security objectives and the sector's need for capital. Replacing Chinese investment with alternative sources at comparable terms remains an unresolved challenge.
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Our Take
Geopolitical divestment mandates are easy to announce and hard to fund, and the gap between forced Chinese exit and credible alternative capital is where project timelines go to die. Until Western governments or institutional investors demonstrate they can fill that gap at scale, critical minerals policy risk remains a genuine headwind for Australian rare earths valuations.
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MSN
Gold Holds Above $4,500 as Analysts Eye Near-Term Price Dip
Gold is holding above $4,500 as analysts flag the potential for a near-term pullback following recent price volatility. Market participants are weighing macro factors including production levels and capital spending trends against ongoing geopolitical uncertainty. The price level is a key reference point for gold producers making hedging and capital allocation decisions.
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Our Take
Gold sustaining above $4,500 is extraordinary margin territory for unhedged producers, but analyst warnings of a near-term dip will test whether company treasuries lock in gains or ride the momentum. How producers respond to this price environment will say a lot about their confidence in the macro backdrop holding.
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AFR
Billionaire, Bankrupt, Boss: Nathan Tinkler Plots Coal Comeback
Nathan Tinkler, the former mining billionaire who went bankrupt in 2012, has been named incoming executive chairman of ASX-listed White Energy. The appointment is conditional on White Energy raising $15 million to acquire a private company owned by Tinkler, marking his return to the listed mining space through a micro-cap coal vehicle.
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Our Take
Tinkler reverse-engineering himself back into an ASX chair through a micro-cap shell is the kind of comeback story the Australian mining scene writes better than anyone. Whether this is the start of something real or a repeat of the last chapter is the question the $15 million raise will answer.
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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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