NEW YEAR UPDATES

The results of the main general mining Final and Interim companies are been published this month.
It would seem as if investors are disappointed with the results. Do remember that because of the recession mineral and metal prices tumbled and demand stagnated between 2009 and 2014. Since then prices have shown stability and as demand is now increasing recoveries are recurring.
It would seem as if dividends were expected. Do remember that most companies decided to downsize .This has put them in a much stronger position. They are all likely to grow expotentially  in future with many good years ahead.

See the side-bar for the latest updates

FINAL UPDATES

THE final updates are in place  for 2016. The stocks went through a jerky run during the year but traders that followed the leaders and stayed in for the whole period and did not try to time the market did the best,with the extra costs there to attached. OUTSTANDING GAINS WERE MADE DURING THE YEAR see the side bar for the lists.

UPDATES IN PLACE

ALL THREE UPDATES ARE IN PLACE SEE SIDE-BAR

UPDATES ARE IN PLACE see side-bar

We think mining houses and holdings are  safer bet now as the  market is very volatile and single stock mineral mines can quickly fall from grace.

We feel that Glencore and  Anglo are the best bets as they were the first ones to cut production and have satisfactorally reduced their debt.

MIXED SIGNALS

After three years it's renegotiating time again for the precious metal miners salaries. Last time they seriously miscalculated asking an impossible amount of money .When they did not get their way, they turned violent and also embarked on a five month stoppage on the platinum mines. At that time there was a huge surplus of  metal and the price kept falling. How ever the mines were harmed some having to close  various parts of their mines permanently and others such as Lonro almost going bankrupt. There were strong political overtones to the strike as they hoped that the then government would nationalize the mines. Wisely the government refused as platinum group metals mining and benefication is a very advanced operation that requires great skill .
There were unfortunately populist political overtones to the strike.
The net result was that almost half the miners lost their jobs permanently causing great hardship as the mines raced to mechanise their operations and they eventually accepted the 9% increase that was originally offered.
This time there might be a different outcome with all sides exercising restraint.

RESOURCE SHARES REACH EQUILIBRIUM

With the weak resource prices continuing and demand reaching new lows last year,shorting main producing shares last year ,shares made new lows at large discounts below their net asset values. With real investor interest and short covering this year there has been a remarkable recovery in the first part of 2016.
How ever further advances now will depend on demand for products which will drive prices higher. At the moment there no sign of a genuine recovery which will obviously still manifest itself in the following years. Care is now needed when buying stocks as their costs of production are also increasing as the Rand weakens.

MINING SHARES ARE AT LAST RECOVERING

IN THE OLD DAYS THESE WERE CALLED  MNING HOUSES AND HOLDING COMPANIES WHICH WAS A GREAT DEAL MORE DISCRIPTIVE THAN TODAY AS THEY ARE NOW CALLED GENERAL MINING AND ARE IN A SECTOR WTH A WHOLE LOT OF RUBBISH SHARES AS WELL!  
WE HAVE CHOSEN THE BEST IN OUR OPINION,SEE THE SIDE-BAR

A SLOW RECOVERY CONTINUES.

THE RECOVERY IN THE GOLD AND PLATINUM PRICES IS DUE TO THE ACTUAL PRICE OF EACH METAL,NOT JUST MARKETS BEING OVERSOLD !
THE PLATINUM GROUP METALS HAVE FOR SOME TIME NOT BEEN IN SURPLUS AND AS FAR AS THE GOLD PRICE GOES THIS IS SEEN AS A ALRTERNATE ASSET IN THESETROUNLING TIMES.




. See the latest platinum and gold updates in the sidebar.
ALSO READ THE MAIN POST ON .....sashares2010.blogspot.com

A WINDOW OF OPORTUNITY AT LAST !

As the  Rand( South African currency) decreases against the American Dollar the price we receive for our commodities increases. Eventually inflation will nullify the gap and this will not be an advantage. How ever this can take a couple of years as the recession we are in have caused the mining companies to act very prudently.
 VEIW THE GOLD UPDATE IN THE SIDE-BAR 18/1/2016

POSSIBLE REBOUND IN RESOURCE STOCKS

It would seem as if metals are bouncing along the bottom of their ranges. At this point it is likely if prices do not improve, mines will simply stop production. In countries other than China small shortages are beginning to develop.
 OVER THE LAST MONTH
AMS         UP 24%
AQP         UP 51%
AGL DOWN   7%
STXRES   UP  3%
SEE THE PAGES FOR 2015 UPDATES