Mining

  • 02 Oct
    Iron Ore Stocks Are Hot, But Are They Really A Good Buy?

    Iron Ore Stocks Are Hot, But Are They Really A Good Buy?



    • Iron ore prices are relatively high, therefore, don’t expect earnings and dividend stability.
    • An analysis of mining costs shows the balance price for the metal. Trade iron ore miners around that balance price.
    • Vale’s mining costs per ton will go as low as $8.

    Introduction

    Iron ore miners currently being praised as stable companies with low valuations, high earnings, and dividends, has really taken me by surprise.

    But that’s how the market thinks. Short term, short term, short term, and a stock is a good buy only when it’s at multi-year highs because it’s the market performance that determines the quality, not the fundamentals. More →

  • 31 Aug
    How Things Have Quickly Changed On The Outlook For Copper

    How Things Have Quickly Changed On The Outlook For Copper

    • Everyone was negative on copper just a year ago. Today, most are positive.
    • There are two factors that help determine whether there will be a future turnaround or not for a commodity.
    • The nice thing is that all the data is easily accessible with a bit of research and a long term view.

    Introduction

    I’ve been writing about the imminent supply gap in copper for about a year and a half now. However, when I first came out with this thesis, the copper environment was extremely negative.

    The following headlines are an example of just some of the negativity surrounding copper in the last three years. More →

  • 02 Dec
    The Crazy World Of Mining Costs

    The Crazy World Of Mining Costs

    • Don’t take a description of costs for granted as they vary from miner to miner.
    • Mining costs aren’t an accounting metric, but most miners should follow the World Gold Council’s guidelines.
    • Apart from disclosure metrics, there is a metric that doesn’t deceive.

    Introduction

    As gold is getting more interesting as a buying opportunity, it’s important to identify the miners that offer the highest reward for the lowest risk. More →