Streetwise Reports' Article Archives — April 2015 back to current month (16)
A weak national currency is bad news for importers and consumers but good news for exporters, such as miners. According to Australian analyst Duncan Hughes of GMP Securities, the 24% drop in the value of the Aussie dollar versus the U.S. dollar means that local gold producers can produce big margins even at US$1,200/ounce gold. In this interview with The Gold Report, Hughes names two Aussie gold miners with great cash flow, as well as several with projects in Africa, and he highlights nickel and copper companies that can expect to flourish when prices rise, as he expects they will.
Ryan Castilloux's State of the REE Market Address (04/28/2015)
We are five years into this new market for rare earths: five years that dawned with higher rare earth elements prices, that unfolded with a new generation of publicly listed junior resources companies with REE properties and projects, and that saw a vicious bear market spread across the domestic and global mining sectors. But soon we will turn the page, says Ryan Castilloux, founding director and market research analyst with Adamas Intelligence, following a price rally for magnetic REEs that could regenerate investor interest and further buoy the sector. In this interview with The Mining Report, Castilloux discusses four REE projects that continue to advance, as well as companies making strides with REE extraction and separation technologies.
Hold the Nickel Price Elation (04/28/2015)
"For even the moderately bullish scenario to come to bear, it will be critical to see steel demand show signs of life this year—at least not drop off more than expected—in China and beyond."
Randall Abramson, CEO/portfolio manager with Toronto-based Trapeze Asset Management, says that picking stocks can be like picking strawberries. If a strawberry looks terrific, other than a tiny blemish, you simply remove the blemish and enjoy the rest. But if the fruit turns out to be rotten, the entire strawberry is for the birds. Is the stock price below fair market value because there's a little blemish and the market is overreacting? Or is it a sign that the stock is rotten to the core? In this interview with The Gold Report, Abramson offers a fistful of small- and large-cap gold equity names for investors that can look past the blemishes to see quality fruit.
Björn Paffrath, fund advisor, mine financier and chief-editor of Cashkurs Gold newsletter, says there are headwinds ahead for the gold sector but refuses to shy away. In general, he says investors want well-managed, low-cost producers with moderate headline risk that can run for one or two more years at lower gold prices. In this interview with The Gold Report, Paffrath lists equity names on three continents that are building toward better times, perhaps as soon as 2016.
As the political and financial pressures on fossil fuels mount, investors are starting to explore the renewable energy space with an eye toward reaping its potential. Rupert Merer analyzes that growing energy sector for National Bank Financial and tells The Mining Report why betting on the future of renewables is a prudent strategy for profit growth.
Gold Mining Stocks Get a Boost from M&A Activity (04/21/2015)
"Investors in gold mining stocks have a great catalyst for profits right now: increased deal-making among gold mining companies."
Kal Kotecha, founder and editor of Junior Gold Report, says now is the time to be buying resource stocks, especially gold equities. He says the TSX Venture Exchange is the most decimated market in the world and the index will rebound to well beyond 1,000 in the next 12 to 24 months. In this interview with The Gold Report, he lists several gold and oil equities, some with near-term production narratives, others with longer-term potential.
The Common Man: The Case for Copper and Zinc (04/20/2015)
"The only bright spots, according to recent forecasts, appear to be in base metals such as copper and zinc."
If you don't like what people are saying about you, change the conversation. Derek Macpherson, an analyst with Toronto-based M Partners, covers three companies that are up over 30% year-to-date—and he believes those companies are performing because they got the market's attention by changing the conversation. In this interview with The Gold Report, Macpherson says companies that can change their narrative on the fly—and deliver—will inevitably perform. Macpherson covers some performers and others that he expects will perform in H2/15 and beyond.
Nuclear power is enjoying a renaissance, and the world will soon need more uranium. Up to 50% more within a decade, says Joe Reagor of ROTH Capital. In this interview with The Mining Report, he explains that the share prices of uranium juniors remain low because the uranium spot price has not yet risen to reflect the increased demand just around the corner. This provides a great opportunity for canny, long-term investors, and Reagor identifies four companies that have the means to profit from the inevitable need for their product.
Christos Doulis, mining analyst with PI Financial, hopes for the best but plans for reality. The bear market in precious metals is well into its fourth year and could persist into 2016. In this interview with The Gold Report, Doulis says he remains hopeful that this is the year things take a positive turn, but in case we see more of the same, he recommends a few low-cost producers with saintly management teams that keep delivering on promises.
Eric Muschinski, editor of the Chicago-based Gold Investment Letter, says that investing in a bear market is not about picking the absolute bottom—it's about accumulating your favorite companies regularly and averaging in at massive discounts. In this interview with The Gold Report, Muschinski lists some highly undervalued equities and tells investors to get more aggressive, especially this summer, when he believes the bear could go into hibernation.
Where can investors turn when global quantitative easing and the Energizer Bunny of dollars is crushing commodity prices to within an inch of the junior miners' lives? In this interview with The Mining Report, Disruptive Discoveries Journal writer Chris Berry suggests dedicating yourself to understanding the technologies and paradigm shifts that can lower costs, and participating in the growing electric car and energy storage battery markets. He names some of the innovative companies that are finding new ways to separate the most valuable resources and enter the supply chain before it is too late.
The four-year-long bear market in metals stocks has resulted in an historic opportunity for investors, says Rick Mills, the owner and host of Ahead of the Herd. In this interview with The Gold Report, he explains that gold and other metals must rise as supply falls, so that when the market finally turns, those companies that have continued to increase shareholder value will reward shareholders many-fold. And he highlights four companies poised to do just that.
Despite their recent underperformance, David H. Smith, Senior Analyst with The Morgan Report, remains bullish on precious metals, especially silver and palladium, as the "love trade" heats up and the global economy adds more debt to the system. Smith believes that the secular bull run in precious metals will be reignited later this year and that investors should take advantage of the regular volatility native to silver prices. In this interview with The Gold Report, Smith provides some of the silver and platinum group metals equity names he owns and that could offer significant upside, even from current prices.
|"Sampling shows high-grade rhodium potential at PGE's Stillwater West."|
|"There may be significant upside potential from SEA's 3 Aces project."|
|"I like MMG's business plan and I like the fact that it's in an area that hosts extremely high-grade silver deposits, and especially the fact that it put out for acquisition by others a couple of royalty properties."|
|"PVG reset expectations and can look to regain investor confidence."|
|"MAG is poised to enter production this year."|