Tag: streetwise interviews

Seven Gold and Uranium Juniors with Near-Term Growth You Can't Ignore

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The Mining Report: The Toronto Stock Exchange (TSX) global index dropped 50% during the past year. Where is the silver-gold lining in this cloud?

Joe Mazumdar: Financing risk for the junior mining sector was highly elevated, to say the least, in 2013 and remains a source of uncertainty in 2014. To reduce the risk of financing a project, we seek projects that generate double-digit returns in the current pricing environment. We also look for management teams with the technical capacity to not only build and operate a mining project, but also to successfully execute the business plan, which includes permitting the project and attracting good personnel. We want to mitigate the technical and execution risks inherent in a project by selecting these management teams. As senior management cannot mitigate all risks such as geopolitical and financing risk, we seek projects in manageable jurisdictions where the management has appreciable relevant experience. Another key is that the underlying asset requires a manageable or "bite-sized" upfront capital requirement. Continue reading "Seven Gold and Uranium Juniors with Near-Term Growth You Can't Ignore" →

David Morgan: 'The Silver Bottom Is In: Time to Hold, Add and Ride It Out'

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The Gold Report: When we interviewed you last, you mentioned the possibility of "resource wars" in 2014 as referenced in Michael Klare's book of the same title. What will that look like to the average investor?

David Morgan: The resource wars have already started. Look at Mexico. It has a resource that it covets very much, and that's energy. That is why the government levied a new tax designed primarily at energy but subsequently adds a 7.5% royalty on mining profits. Is it a war? Not per se, but it is detrimental to companies that operate in Mexico today and in the future. I think we will see even more of this kind of thing in 2014.

TGR: Last year was a volatile year for precious metals prices with silver going below $20/ounce ($20/oz) and gold bobbing around $1,200/oz at the end of the year. Are we still three or four years from $100/oz silver as you said in your last interview? What's going to push it to that level? Continue reading "David Morgan: 'The Silver Bottom Is In: Time to Hold, Add and Ride It Out'" →

How to Prosper in the Coming Downturn

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The Gold Report: In your latest book, "The Demographic Cliff: How to Survive and Prosper During the Great Deflation of 20142019," you write about the aging of the Baby Boomers and the wave of Gen-X'ers that follows. What does that tell you about the next five years?

Harry Dent: I discovered this relationship, which I call the spending wave, in 1988. Peak spending happens at about age 46 in the U.S., Japan and most developed countries. That is when a generation will earn, spend and borrow the most money. After that age, spending declines.

More than 20 years ago, we predicted Japanese spending would peak in the late 1980s, and U.S. spending around 2007. Now, Europe is hitting its demographic peak and will start dropping off. The drop off will be especially steep in Germany, the United Kingdom, Austria and Switzerland some of the strongest economies in Europe. How will Europe's rebound continue with these countries plunging in the years ahead?

TGR: Much of Germany's economic strength is based on exports. Would that protect Germany through the decline? Continue reading "How to Prosper in the Coming Downturn" →

Zinc or Swim: Do Base Metals Have a Future?

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The Mining Report: How are the fundamental challenges facing the global base metals markets likely to play out in 2014?

Joseph Gallucci: There are several long-term issues that impacted copper and the other base metal spaces in 2013, and those long-term issues will persist for the foreseeable future. Allow me to explain the basics via a few examples:

Indonesia recently stopped the export of intermediary products, such as pig iron nickel. The country's leadership is increasingly practicing resource nationalism by restricting mining firms to in-house processing and to shipping only finished products. It is also unsettling that Intrepid Mines Ltd. (IAU:TSX; IAU:ASX) lost control of its project this year to an Indonesian partner!

In terms of supply chain disruptions in 2013, Grasberg and Bingham Canyon were two of the biggest issues, but we are still well below the annual average of a 5% supply disruption. This year has been an anomaly and quite low in that regard. Supply chain disruptions will definitely pick up going forward and they are impossible to predict.

For problems with mining infrastructure, Chile was the hot button. It has port access and infrastructure issues, and there are still no power agreements in place for many of Chile's mining development projects. These types of long-term issues will continue to impact the base metals sector into the future.

TMR: Were declining ore grades an issue in 2013? Continue reading "Zinc or Swim: Do Base Metals Have a Future?" →

Miners Must Mind Their Margins

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The Gold Report: Since you last spoke to The Gold Report in March, the price of gold has collapsed. What happened?

Rob Cohen: Gold has collapsed when compared to the U.S. dollar, but not when compared to other hard assets. For instance, since gold was allowed to float in 1971, its average price ratio per ounce to the price of a barrel of oil has been 15:1. Right now, it's about 13:1, so it's not that far from the mean. We remain a little puzzled by what has happened. Going back to 2008, there's been a strong correlation between the expanding balance sheet of the Federal Reserve and the rising price of gold, but that link has been cut, at least for now.

We have also had some positive economic data out of the U.S.

TGR: Is this positive data really all that positive? Continue reading "Miners Must Mind Their Margins" →