Cejay Kim August 5, 2015 Category: Research This cartoon, drawn by Keven Kallaugher (KAL) in 1989, was featured on cover of the Economist and it's surprising how relevant it remains.What we see is the classic case of 'herd instinct', or the mentality in which an individual lacks unique decision-making and simply acts in the same way as the majority around them. In finance, this means investors gra...Read More
Cejay Kim August 5, 2015 Category: Research This cartoon, drawn by Keven Kallaugher (KAL) in 1989, was featured on cover of the Economist and it's surprising how relevant it remains.What we see is the classic case of 'herd instinct', or the mentality in which an individual lacks unique decision-making and simply acts in the same way as the majority around them. In finance, this means investors gra...Read More
Cejay Kim July 26, 2015 Category: Research Removing new issues, from 2011 to April 2015, the TSX Venture has had over1,200 casualties, or has lost over50% of its listed constituents. While new companies have been slowly replacing the dead, the index is still 320 companies lighter.Companies are still trying, but are failing. Read More
Cejay Kim July 26, 2015 Category: Research Removing new issues, from 2011 to April 2015, the TSX Venture has had over1,200 casualties, or has lost over50% of its listed constituents. While new companies have been slowly replacing the dead, the index is still 320 companies lighter.Companies are still trying, but are failing. Read More
Cejay Kim July 26, 2015 Category: Research Removing new issues, from 2011 to April 2015, the TSX Venture has had over1,200 casualties, or has lost over50% of its listed constituents. While new companies have been slowly replacing the dead, the index is still 320 companies lighter.Companies are still trying, but are failing. Read More
Cejay Kim July 26, 2015 Category: Research Removing new issues, from 2011 to April 2015, the TSX Venture has had over1,200 casualties, or has lost over50% of its listed constituents. While new companies have been slowly replacing the dead, the index is still 320 companies lighter.Companies are still trying, but are failing. Read More
Cejay Kim July 23, 2015 Category: Research This chart seems to be making its rounds so we decided to update it. Unfortunately, since we last published it, gold has plunged even more and the TSXVentures inches closer to its largest decline ever. The length of this bear market is also staggering, in four months' time it will have encompassed the total days of all the bear markets combined.Read More
Cejay Kim July 23, 2015 Category: Research This chart seems to be making its rounds so we decided to update it. Unfortunately, since we last published it, gold has plunged even more and the TSXVentures inches closer to its largest decline ever. The length of this bear market is also staggering, in four months' time it will have encompassed the total days of all the bear markets combined.Read More
Cejay Kim July 23, 2015 Category: Research This chart seems to be making its rounds so we decided to update it. Unfortunately, since we last published it, gold has plunged even more and the TSXVentures inches closer to its largest decline ever. The length of this bear market is also staggering, in four months' time it will have encompassed the total days of all the bear markets combined.Read More
Cejay Kim July 23, 2015 Category: Research This chart seems to be making its rounds so we decided to update it. Unfortunately, since we last published it, gold has plunged even more and the TSXVentures inches closer to its largest decline ever. The length of this bear market is also staggering, in four months' time it will have encompassed the total days of all the bear markets combined.Read More
Commodity prices have finally risen to the point that miners can start new development projects, but the rally in metals prices also brings higher costs for producers.Both operating and capital costs tend to climb sharply during cyclical rallies for metals. However, some companies have proven more adept than others at generating returns in the face of this challenge.Stephen D. Walker, head of glob...Read More
OPEC’s production-cutting deal had set the stage for the oil market in 2017, but base metals prices hinge on policy coming out of China.Industrial metals continue to see support from strong Chinese buying and the reflationary trade that followed Donald Trump’s election victory.However, analysts at J.P. Morgan think prices have run ahead of fundamentals, with the exception of zinc.The o...Read More
TORONTO — Nickel prices have jumped almost 40 per cent since bottoming out in January, yet most miners of the steelmaking metal are still bleeding cash at a rapid rate.Canadian nickel miner Sherritt International Corp. noted this week that more than 60 per cent of global output is losing money on a simple cash margin basis. Once capital spending and other costs are added in, the actual perce...Read More
After many months in the gutter, two of the world’s least-loved metals are enjoying an honest-to-goodness turnaround.Zinc and nickel are both soaring this summer after recovering from shocking depths early in the year. Zinc touched US$1.00 a pound on Thursday for the first time since mid-2015, while nickel jumped to a nine-month high of US$4.73 a pound. Zinc is up 48 per cent from its Januar...Read More
It feels like a lifetime ago, but only five months have passed since investors thought Canada’s two biggest copper miners were at risk of collapsing.In mid-January, Teck Resources Ltd.’s long-term notes traded as low as 38.5 cents on the dollar. Meanwhile, the debt of First Quantum Minerals Ltd., one of its chief rivals, traded between 40 and 45 cents. The mining industry was drowning...Read More
Well, that rally didn’t last long. BMO Capital Markets analyst Jessica Fung pointed out on Tuesday that copper prices have given back all of their gains so far from 2016. Prices rose as much as 7.5 per cent before they started to slip in March.And Fung said further declines are a strong possibility in the short term. She noted that June is typically a weak month for copper prices, the U.S. d...Read More
Commodity prices have finally risen to the point that miners can start new development projects, but the rally in metals prices also brings higher costs for producers.Both operating and capital costs tend to climb sharply during cyclical rallies for metals. However, some companies have proven more adept than others at generating returns in the face of this challenge.Stephen D. Walker, head of glob...Read More
The plunge in commodity prices has forced many mining companies to sell assets or metal streams to boost their liquidity. But their work is far from finished.TD Securities analysts Greg Barnes and Craig Hutchison studied the liquidity of base metal miners and found that if prices remain low, liquidity will become “extremely tight” for many of them by the end of 2017, if not sooner.&ldq...Read More
Falling base metal prices are putting major pressure on producer balance sheets, especially for those miners that are carrying a lot of debt. Canaccord Genuity analyst Peter Bures is among those cautioning investors to be very careful in this sector right now.“With producers feeling the squeeze of over-levered balance sheets amidst a backdrop of significantly lower commodity prices, we belie...Read More
With safety issues increasing the likelihood of a work stoppage at Freeport McMoran Copper & Gold Inc.’s Grasberg project in Indonesia, coupled with a strike set to begin Nov. 10 at the Antamina mine in Peru, the probability of a deficit in the copper market has significantly risen.Estimates suggest that these two labour disruptions could remove 84,000 tonnes of mined copper supply throu...Read More