Macquarie: Bullish Outlook for Coking Coal

Source: Mineweb (11/3/10)

"Even with slower growth, supply constraints remain."

Macquarie held its second 2010 China Commodities Conference last week in Beijing and Shanghai. It was well attended by institutional investors and industry experts with more than 20 experts presenting outlooks on the macro economy and commodities.

A clear takeaway was that Chinese growth in 2011 would be a little slower than in 2010—nothing alarming—with the majority assuming GDP growth of 8.5%–9.0% next year. There was some concern over the government's policy on the residential property market in the coming months if property prices were to stay high. Property transactions are expected to fall 10% in Q 410 before rebounding in 2011 on solid fundamental support from middle-class upgrade requirements and fresh buying from people moving from rural to urban areas.

One of the key themes was the government's desire to increase efficiency. The noise out of Beijing is that growth for growth's sake will be less of a priority over the next five years. The presentations projected a bullish market for copper (high-efficiency motors, consumer appliances) and hard coking coal (as steel mills become larger) and a bearish one for aluminum supply (aluminum costs in China are set to rise and aluminum's main inputs are in domestic-based energy, so there would be little benefit from the rising Renminbi in terms of import cost reduction).

It was widely agreed at the conference that the Chinese economy and key commodities demand are set for slower growth next year but not to the point of collapsing. However, limited new supply, including iron ore, coking coal and copper from the Western world should drive prices much higher next year from the 2010 level. The thermal coal market should be bullish in the near term but mixed in the medium term on a potential supply response to mine consolidation.

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"

Latin America: Six Gold Juniors Amass 100M+ Ounces
Source: Marc Davis, BNW News (05/25/2010)

Latin America, the world's last great mineral frontier for prolific gold discoveries, is proving a godsend for some lucky investors.

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."

I haven’t spoken to my old mining stock friend, noted and universally respected gold stock guru, Bob Bishop, about Rare Element in a year, but I hear he is still a supporter and very large shareholder. I don’t believe he will hold it against me to remind you that this was one of his favorite holdings when he left the newsletter writing business. . .

It's Only the Beginning for Uranium
Source: www.financialinsights.com (06/03/2005)

Dr. Richard S. Appel, author of Financial Insights, first became bullish on uranium in mid-2003, when it appeared obvious that its supply versus demand equation was fated to seriously drive higher its price. Since then, a series of events in the uranium industry has led Appel to believe that uranium prices will reach never before seen levels.

(00/00/0000)