Metals Prices to Remain Strong This Year but Risks Will Strain Mining Credit Ratings

Source: Mineweb.com (9/28/07)

Among the medium-term risks are a sudden change in Chinese demand, a significant increase in company costs because of higher energy prices, higher currencies against the dollar, and a general slowing of the U.S. economy, according to S&P.

While Standard & Poor's anticipates that strong metals prices will continue for the rest of this year, individual mining company risks will strain their credit ratings.

Among the medium-term risks are a sudden change in Chinese demand, a significant increase in company costs because of higher energy prices, higher currencies against the dollar, and a general slowing of the U.S. economy, according to S&P.

Of the 50 U.S. mining and metals companies rated by S&P, 32 or 64% have stable outlooks; 11 have negative outlooks or are on CreditWatch with negative implications; six have positive outlooks or are on CreditWatch with positive implications; and one has a developing outlook.

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."