Sean Brodrick was the moderator of this panel from Fairmont Resources. The topic they addressed is called "Diverse Opportunities in the Canadian Resources Sector".
Gold is still in a bull market. We are into a disinflationary period. Commodities will be moving down. The US currency is really bad, except for all the others. The US currency is going up and this puts a downward pressure on gold. Gold is currently not responding to geopolitical problems.
As far as base metals go, he is bullish on nickel as they have been no big discoveries lately. Zinc and copper are ok. He favors zinc as supply and demand is out of whack. A big mine in Australia is closing. He also favors aluminum as there is not much in new supply.
Silver is a byproduct of zinc mining and silver is not cheap. Tahoe Resources (NYSE-THO) is a good company. Silver is not horded like gold is. As tech improves we might get more efficient in mining silver. As for Silver Wheaton Corp (TSX-SLW) he would like to see silver improve in price before buying.
As oil prices drop, Alberta oil sands will have problems. Natural gas prices are regional in Canada. Carbo Ceramics (NYSE-CRR) is a good company. As for Natural Gas, the tech to get it out of the ground is changing rapidly. Raging River Exploration Inc. (TSX-RRX) is a good company. Buy Toscana Energy Income Corp (TSX-TEI) for income as it is a boring company.
Nitrogen fertilizers will be coming down in Canada. The US will be look for more local sources for nitrogen. He does not think that phosphate plants can make a decent return in North America.
If we get into a strong disinflationary period, there could be a QE4. The panels feel that older players in the Oil Sands will be ok, but new plays are out of luck.
On my other blog I am today writing about Canadian Oil Sands (TSX-COS, OTC-COSWF) ... continue.
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