finweek

COVER STORY | What is driving the commodities cycle?

accreditation
Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!
0:00
play article
Subscribers can listen to this article
Whether it’s BEVs or hybrids, or even the continued use of ICEs for years to come as others believe, metals of a variety of stripes are crucial to the EV mix.
Whether it’s BEVs or hybrids, or even the continued use of ICEs for years to come as others believe, metals of a variety of stripes are crucial to the EV mix.

Here’s some good news. The R140bn budget surplus recently announced by the SA Revenue Service – driven by profits from mineral exports – is a sector-specific elevated contribution that is likely to continue for years to come. By the time you’re reading this, Anglo American will have reported its interim financial results. Yes, you may burr: they were stellar.

As for the inevitable bad news? Well, apart from natural market corrections that are bound to occur, there isn’t much doom-mongering to be done about mining. Rather, the challenge for investors is whether they can make the best of the industry’s prosperity.

Every EV needs a battery, and every battery needs a host of different metals, depending on its science. According to the International Energy Agency’s (IEA’s) Global EV Outlook 2021 report, worldwide registrations of EVs grew 41% in 2020, when total car sales dropped 16%. Sales of EVs in Europe surpassed China for the first time.The main reasons for the popularity of EVs are supportive policies, driven by carbon emissions concerns; additional incentives; and a wider range of brand choice with falling battery prices.

Support independent journalism
Subscribe to News24 for just R75 per month to read all our investigative and in-depth journalism. You can cancel any time.
Subscribe
Already a subscriber? Sign in
Rand - Dollar
14.98
-0.2%
Rand - Pound
20.50
-0.3%
Rand - Euro
17.54
-0.1%
Rand - Aus dollar
10.90
-0.5%
Rand - Yen
0.14
-0.2%
Gold
1,760.09
+0.6%
Silver
22.68
+1.1%
Palladium
1,985.86
+0.6%
Platinum
996.00
+0.9%
Brent Crude
78.09
+1.1%
Top 40
58,132
+0.9%
All Share
64,561
+0.8%
Resource 10
58,219
+1.7%
Industrial 25
83,400
+0.6%
Financial 15
14,287
-0.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Voting Booth
What potential restrictions on unvaccinated South Africans may make the biggest difference to public health, the economy?
Please select an option Oops! Something went wrong, please try again later.
Results
Limited access to restaurants and bars
11% - 139 votes
Limited access to shopping centres
15% - 181 votes
Limited access to live events, including sport matches and festivals
27% - 332 votes
Workplace vaccine mandates
48% - 593 votes
Vote