S&P: U.S. Metals, Mining Feel the Pressure to Add Leverage

Source: Mineweb.com (10/30/07)

As of July, S&P maintains ratings on 53 U.S. metals and mining companies, up from 48 in 2002. While nearly 80% of these companies have stable or positive outlooks, S&P's Primary Credit Analyst Marie Shmaruk noted that their ratings are lower than they were in 2002.

Research published by Standard & Poor's Monday determined that the use of leverage by U.S. mining and metal companies has risen over the past several years, but has been driven by specific business needs rather than a shift to more aggressive financial policies.

S&P Primary Credit Analyst Marie Shmaruk suggests that most mining and mining companies have used debt judiciously, increasing borrowing primarily "to enhance reserves and to improve market penetration, geographic diversity, and product offerings."

...Shmaruk said, "we believe that if business conditions remain strong, business expansion, productivity improvements, and industry rationalization will encourage participants to increase overall debt levels."

As of July, S&P maintains ratings on 53 U.S. metals and mining companies, up from 48 in 2002. While nearly 80% of these companies have stable or positive outlooks, Shmaruk noted that their ratings are lower than they were in 2002.

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."