FOUR REASONS FOR OPTIMISM
Dr Alex Cowie
WHERE ARE WE NOW?
- XMM INDEX STILL NEAR LOWS
SMALL RESOURCES INDEX – XSR
IF YOU LIKE TO ‘BUY LOW’ … NOW YOU CAN
4 REASONS FOR OPTIMISM

1: SYNCHRONOUS GROWTH IN EUR / JAP / US / CHINA
• 2: FALLING AUSSIE DOLLAR
• 3: CHANGE OF GOVERNME...
#1: SYNCHRONOUS GROWTH NOW IN
ALL MAJOR GLOBAL ECONOMIC REGIONS
… EVEN THE ‘PIGS’ ARE GROWING!
#2 A WEAKER AUSSIE IS GOOD FOR MINING
#3: A CHANGE OF LEADERSHIP
FUNDING OPTIONS:
• ECM, DEBT
• CONVERTIBLES
• PE / VC
• STREAMING / ROYALTIES
• ASX BOOKBUILD
#4: NEW WAY FOR SMALL COMPANIES TO ACCESS CAPITAL :
CAPITAL RAISED ON ASX BEEN STEADY
ASX MATERIALS AND ENERGY:
CASH IS LOW AT THE SMALL END,
COMMODITY FOCUS
• #1: SPECIALITY MINERALS
•

TECH SPACE IS CURRENT MARKET DARLING

•

RESOURCES WITH A TECH ANGLE OUTPERFO...
#2: BASE METAL STOCKS
#3 GOLD:
TOUGH TIMES DEMAND QUALITY PROJECTS
• LOW COST PRODUCERS:

• BEADELL (BDR)
• OCEANAGOLD (OGC)
• HIGH QUALITY EXPL...
BUT IGNORE REAL BOND YIELDS AT YOUR PERIL:
…THEY ARE NOW AT LEVELS THAT HAVE HAMSTRUNG GOLD IN THE PAST
‘TREASURY INFLATION PROTECTED SECURITIES : GOLD’ RATIO
- CURRENTLY A GOOD ROADMAP FOR TRADING GOLD + GOLD EQUITIES
THANK YOU FOR LISTENING
TUNE IN TO THE DEBATE ON:

www.livewiremarkets.com
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Alex Cowie, Former Editor, Diggers and Drillers: What should investors look for in a junior resource stock during these challenging market conditions?

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Alex Cowie, Former Editor, Diggers and Drillers: What should investors look for in a junior resource stock during these challenging market conditions? Presented at Mines and Money Australia 2013

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Alex Cowie, Former Editor, Diggers and Drillers: What should investors look for in a junior resource stock during these challenging market conditions?

  1. 1. FOUR REASONS FOR OPTIMISM Dr Alex Cowie
  2. 2. WHERE ARE WE NOW? - XMM INDEX STILL NEAR LOWS
  3. 3. SMALL RESOURCES INDEX – XSR IF YOU LIKE TO ‘BUY LOW’ … NOW YOU CAN
  4. 4. 4 REASONS FOR OPTIMISM 1: SYNCHRONOUS GROWTH IN EUR / JAP / US / CHINA • 2: FALLING AUSSIE DOLLAR • 3: CHANGE OF GOVERNMENT • 4: A TOTALLY NEW CHANNEL TO RAISE CASH •
  5. 5. #1: SYNCHRONOUS GROWTH NOW IN ALL MAJOR GLOBAL ECONOMIC REGIONS
  6. 6. … EVEN THE ‘PIGS’ ARE GROWING!
  7. 7. #2 A WEAKER AUSSIE IS GOOD FOR MINING
  8. 8. #3: A CHANGE OF LEADERSHIP
  9. 9. FUNDING OPTIONS: • ECM, DEBT • CONVERTIBLES • PE / VC • STREAMING / ROYALTIES • ASX BOOKBUILD
  10. 10. #4: NEW WAY FOR SMALL COMPANIES TO ACCESS CAPITAL :
  11. 11. CAPITAL RAISED ON ASX BEEN STEADY
  12. 12. ASX MATERIALS AND ENERGY: CASH IS LOW AT THE SMALL END,
  13. 13. COMMODITY FOCUS • #1: SPECIALITY MINERALS • TECH SPACE IS CURRENT MARKET DARLING • RESOURCES WITH A TECH ANGLE OUTPERFORMING: OROCOBRE (ORE) IS UP 150% IN SIX MONTHS. • INCREASINGLY CORRELATED TO TESLA (NASDAQ:TSLA) • SYRAH RESOURCES (SYR), GRAPHITE EXPLORER, • IS NOW UP 3,000% IN 24 MONTHS •
  14. 14. #2: BASE METAL STOCKS
  15. 15. #3 GOLD: TOUGH TIMES DEMAND QUALITY PROJECTS • LOW COST PRODUCERS: • BEADELL (BDR) • OCEANAGOLD (OGC) • HIGH QUALITY EXPLORERS: • PAPILLON (PIR) • SIERRA MINING (SRM) • E.g.: 53m at 3.2% Cu and 5.2g/t
  16. 16. BUT IGNORE REAL BOND YIELDS AT YOUR PERIL: …THEY ARE NOW AT LEVELS THAT HAVE HAMSTRUNG GOLD IN THE PAST
  17. 17. ‘TREASURY INFLATION PROTECTED SECURITIES : GOLD’ RATIO - CURRENTLY A GOOD ROADMAP FOR TRADING GOLD + GOLD EQUITIES
  18. 18. THANK YOU FOR LISTENING TUNE IN TO THE DEBATE ON: www.livewiremarkets.com

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