There are glimmerings of a resource recovery after more than a decade of declining demand, in the Southern African region. Leading this recovery is the platinum group metals. There has been less appetite to open new mines due to social unrest , a long damaging strike ,socialist government interference,falling prices and demand. It takes about ten years to bring a new mine into production in ideal circumstances and to make it a paying proposition.
Johnson Matthey sees the shortage that is developing getting worse over the next couple of years. The Southern African region produces about 80% of all PGM's. Palladium being the exception with a large Russian production, which might not be available to the West with worsening relations in that region.
In Zimbabwe the geriatric dictator Mugabe has destroyed their economy seizing their agricultural ,industrial and last year started to do the same to mines. In the process he devastated their tax yielding base, leading to many of the populace starving. In desperation he approached the INTERNATIONAL MONETARY FUND for a loan to get moving again. The IMF has imposed conditions that have to be met before they grant the loan, one of which is that they allow free enterprise and stop interfering in mining. It looks as if they are by-passing Mugabe and allowing the mines to develop and produce profits again. Great news !
See Barry's choices page 2 and 3 in side-bar.
SAEE NAOMI'S CHOICES PAGE 1 AND 2
Tuesday, October 7, 2014
Wednesday, September 3, 2014
The recovery has come to ahalt some what !
Tensions regarding the state of the world including recession lurking in the wings, near wars ,terrorism have had an effect on resources this past quarter.
Friday, August 15, 2014
The Resources Recovery
The Resources recovery is starting slowly,but is definitely gaining traction.
See
Barry's choices on page 2 and 3
See
Barry's choices on page 2 and 3
Tuesday, July 1, 2014
Resources are coming into their own again
We feel this is the most neglected section of the JSE at the moment.do take no notice of PE ratios as they are now completely inaccurate. Most shares we mention will be in the ramping up phase for some years. Also money has been raised from share holders so can now be regarded as new operations. See Barry's page 3 and Naomi's page 1,for the latest news.
Wednesday, June 11, 2014
Movement at last
We have not added anything to the previous POSTS for three months as nothing happened on the market of note during this time.
In fact resources were retreated some what. South Africa had relied on resources for decades to make their economy work.
Various factors have broardened the economy and resources now although still important only make up a smaller part of the gross domestic product.
Now at last as the strike still continues the prices of platinum group metals is starting to slowly increase.
The mines have suffered so much that it is doubtful if they can ever restore production to former levels.
There signs on the ground that it will soon be safe for non strikers to return to work.
SEE OUR PAGE 2 FOR OUR CHOICES
14,18/6/2014 The strike seems to be over. See Naomi's resources page for the latest on WEZ and 25/6/2014 on JBL
In fact resources were retreated some what. South Africa had relied on resources for decades to make their economy work.
Various factors have broardened the economy and resources now although still important only make up a smaller part of the gross domestic product.
Now at last as the strike still continues the prices of platinum group metals is starting to slowly increase.
The mines have suffered so much that it is doubtful if they can ever restore production to former levels.
There signs on the ground that it will soon be safe for non strikers to return to work.
SEE OUR PAGE 2 FOR OUR CHOICES
14,18/6/2014 The strike seems to be over. See Naomi's resources page for the latest on WEZ and 25/6/2014 on JBL
Tuesday, March 18, 2014
Tensions
New tensions in the world these days, with the Russian , Ukraine stand off , Chinas slowing economy and faltering recoveries in the West have created market that is hesitant to buy resources, locally in South Africa a bitter political fight that has spilled over into labour unrest as well.
See Naomi's update page 18/3/2014
See Naomi's update page 18/3/2014
Tuesday, February 4, 2014
THE FIRST POST OF 2014
17/2/2014
As far as Jubilee goes hang in there! Platinum is likely to take off soon.
As far as gold goes Janet Yellan seems to be a dove of the American Fed., probably keeping interest rates low. Traders are turning to GOLD to preserve their capital.
I have added Village(VIL) to my list .See my small cap page.
2/2/2014
WE ARE IN THE MIDDLE OF A SELL-OFF AS THE STOCK MARKETS RAN AHEAD OF THE ACTUAL RECOVERY.NEVER FEAR THE RECOVERY STILL CONTINUES ALBEIT VERY SLOWLY.THE USA IS IN A BETTER POSITION NOW THAN IT WAS LAST YEAR.HOW EVER GOVERNMENT INTERVENTION IN KEEPING THE MARKET UP WITH ITS BOND AND TREASURY BUYING PROGRAMME PUT TOO MUCH MONEY INTO THE SYSTEM AND NOW THAT IS BEING WITHDRAWN IS HAVING HEAVY SIDE EFFECTS .OUR SOUTH AFRICAN GOVERNMENT WITH MANY OTHER GOVERNMENTS ARE ALSO OVER SPENDING AND THAT IS WEAKENING OUR MONEY VALUE - NAOMI
SMALL CAP RESOURCES ARE SUFFERING AND FOR THE MOST PART ONLY LARGER CAP SHARES CAN WEATHER THE STORM,FOR THIS REASON I SHALL REWORK MY SMALL CAPS PAGE SOON -NAOMI
As far as Jubilee goes hang in there! Platinum is likely to take off soon.
As far as gold goes Janet Yellan seems to be a dove of the American Fed., probably keeping interest rates low. Traders are turning to GOLD to preserve their capital.
I have added Village(VIL) to my list .See my small cap page.
2/2/2014
WE ARE IN THE MIDDLE OF A SELL-OFF AS THE STOCK MARKETS RAN AHEAD OF THE ACTUAL RECOVERY.NEVER FEAR THE RECOVERY STILL CONTINUES ALBEIT VERY SLOWLY.THE USA IS IN A BETTER POSITION NOW THAN IT WAS LAST YEAR.HOW EVER GOVERNMENT INTERVENTION IN KEEPING THE MARKET UP WITH ITS BOND AND TREASURY BUYING PROGRAMME PUT TOO MUCH MONEY INTO THE SYSTEM AND NOW THAT IS BEING WITHDRAWN IS HAVING HEAVY SIDE EFFECTS .OUR SOUTH AFRICAN GOVERNMENT WITH MANY OTHER GOVERNMENTS ARE ALSO OVER SPENDING AND THAT IS WEAKENING OUR MONEY VALUE - NAOMI
SMALL CAP RESOURCES ARE SUFFERING AND FOR THE MOST PART ONLY LARGER CAP SHARES CAN WEATHER THE STORM,FOR THIS REASON I SHALL REWORK MY SMALL CAPS PAGE SOON -NAOMI
Monday, October 14, 2013
October
SEE Naomi's Small Cap Tips 23 NOV 14 above
See coment Barry's latest comment on..2.LARGE CAP COMMENT.
See coment Barry's latest comment on..2.LARGE CAP COMMENT.
Friday, August 2, 2013
A NEW DIRECTION !
See my small cap resources blog and Barry's new large cap resources pages monthly in the index above,for the latest veiws.See Naomi's update above on 15/8/2013
The United States continues to recover slowly.Now Britian and Germany are taking their first tentative steps in recovery as is Japan.In France they seem to be bumping along the bottom at the moment and China is still some what directionless.
Of interest warrants showing good movement are
from 17 JUL AMSSBG UP 85%
17 JUL IMPSBG UP 68%
23 JUL AGL UP 30%
One has to be nimble in trading in warrant as strike action might disrupt this trend soon.Always keep stop-losses in place.
The United States continues to recover slowly.Now Britian and Germany are taking their first tentative steps in recovery as is Japan.In France they seem to be bumping along the bottom at the moment and China is still some what directionless.
Of interest warrants showing good movement are
from 17 JUL AMSSBG UP 85%
17 JUL IMPSBG UP 68%
23 JUL AGL UP 30%
One has to be nimble in trading in warrant as strike action might disrupt this trend soon.Always keep stop-losses in place.
Monday, July 1, 2013
BETTER TIMES MIGHT BE EXPECTED
TECHNICAL ANALYSIS WILL NO LONGER BE UPDATED AS ITS POPULARITY HAS WANED ALONG WITH THE DECLINE IN GENERAL INTEREST IN WARRANTS.I ENJOYEDPOSTING THIS PAGE FOR THE LAST COUPLE OF YEARS.THE RESOURCE POST IS NOW MOST POPULAR AND I SHALL TRY TO POST TWICE MONTHLY IN FUTURE.
BARRY WILL POST TWO PAGES ON LARGE CAP RESOURCES AS WELL SOON
See resource update above on 17/7/2013
The American,Chinese and Japanese markets are showing better trends now.Europe is still down but Germany and Britian are weathering the financial crises slightly better than the rest and also showing signs of recovery.
There ought to be a recovery in our market in the next couple of weeks,but do keep stop-losses in place as the recovery of minerals seems some what unconvincing at this stage.
BARRY WILL POST TWO PAGES ON LARGE CAP RESOURCES AS WELL SOON
See resource update above on 17/7/2013
The American,Chinese and Japanese markets are showing better trends now.Europe is still down but Germany and Britian are weathering the financial crises slightly better than the rest and also showing signs of recovery.
There ought to be a recovery in our market in the next couple of weeks,but do keep stop-losses in place as the recovery of minerals seems some what unconvincing at this stage.
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