For the most part there is a churning in share prices of commodities at the moment. Prices are unlikely to retreat to any great extent, as costs are in most cases at break even or higher than the cost of production. No new mines nor existing mines are putting any money into expansion. Demand is starting to take of again.
UPDATES IN THE SIDE-BAR
Platinum 22/4/2015
Sunday, April 12, 2015
Sunday, March 1, 2015
Platinum's Price Moves
25/3/2015 Billiton(BIL) would normally fall in price now being ex-div, but is now unlikely to as the demerger which will be voted on the 16/May is likely to send the price up as they will sell off their parts that give the smallest monetary returns ,namely about 6%. We are holding derivatives on this share at least up to that date as we feel in our opinion only the share will gain in price!
1/3/2015 Every year for the last three years there has been a deficit in the production of newly mined platinum. Now every one is wondering why the price of the metal is not increasing. Added to that state was the five month strike of the major producers . In the past the price would have shot up to record heights. Now the platinum price is lower than the gold price and it must be remembered platinum has so many more uses than gold.
First of all ten years there was no recovery of used platinum scrap, a state that exists today ,as old catalytic converters are turned into new usable platinum so the need of new minable platinum is then cut by a third. Added to this was the recession and the struggle in Europe to climb out into better times. Therefore the demand is not there at the moment, how ever with new uses such as fuel cells coming to the fore and less productive mines now running at a loss and major producers closing loss making shafts the scene should change in the next eighteen months. It should also be remembered to bring a mothballed shaft or a new one back to a workable position usually takes at least five years. So the chances of a rising price declining soon again would be minimal.
UPDATES IN SIDE-BAR
Platinum 2/3/2015
Mining holdings 18/3 /2015
Gold mining 25/3/2015
1/3/2015 Every year for the last three years there has been a deficit in the production of newly mined platinum. Now every one is wondering why the price of the metal is not increasing. Added to that state was the five month strike of the major producers . In the past the price would have shot up to record heights. Now the platinum price is lower than the gold price and it must be remembered platinum has so many more uses than gold.
First of all ten years there was no recovery of used platinum scrap, a state that exists today ,as old catalytic converters are turned into new usable platinum so the need of new minable platinum is then cut by a third. Added to this was the recession and the struggle in Europe to climb out into better times. Therefore the demand is not there at the moment, how ever with new uses such as fuel cells coming to the fore and less productive mines now running at a loss and major producers closing loss making shafts the scene should change in the next eighteen months. It should also be remembered to bring a mothballed shaft or a new one back to a workable position usually takes at least five years. So the chances of a rising price declining soon again would be minimal.
UPDATES IN SIDE-BAR
Platinum 2/3/2015
Mining holdings 18/3 /2015
Gold mining 25/3/2015
Tuesday, February 3, 2015
THE CONNUNDRUM REGARDING OIL !
See the new mining houses and holding companies in the side-bar for Feb 2015
The has been much conjecture about the price at this moment and experts did not predict the sudden fall. How ever early in 2014 when the price was still pretty high it was noted that there was already a glut of oil and it was said that speculator buyers of the unrefined oil were keeping large tankers in the Arabian gulf bottled up to prevent an over supply to the world.
Ross Perot Junior ,the son of former presidential US candidate, an oil billionaire thinks that oil will settle in the region of $60 to $70 for at least the next couple of years.
It should be noted that previously when the oil price was low ,all other ecological methods that would be better for our world took a back seat and were usually stopped completely. Not so this time and the world presses on with safer nuclear reactors , solar power, wind and wave power as well. -Naomi
SEE ALSO THE GOLD PAGE UPDATE IN THE SIDE-BAR 4/2/2015
The has been much conjecture about the price at this moment and experts did not predict the sudden fall. How ever early in 2014 when the price was still pretty high it was noted that there was already a glut of oil and it was said that speculator buyers of the unrefined oil were keeping large tankers in the Arabian gulf bottled up to prevent an over supply to the world.
Ross Perot Junior ,the son of former presidential US candidate, an oil billionaire thinks that oil will settle in the region of $60 to $70 for at least the next couple of years.
It should be noted that previously when the oil price was low ,all other ecological methods that would be better for our world took a back seat and were usually stopped completely. Not so this time and the world presses on with safer nuclear reactors , solar power, wind and wave power as well. -Naomi
SEE ALSO THE GOLD PAGE UPDATE IN THE SIDE-BAR 4/2/2015
Sunday, January 4, 2015
RESOURCES LOOKING UP IN 2015 !
Resource shares were pummeled in 2014.Their prices remained lower than production in many instances and many despaired of precious metals such as gold and platinum group metals ever recovering again!
At the moment base and industrial metals are not much better off as main users as China and other industrial users have built up literally mountains of raw materials to keep prices lower for longer periods. A good example of this is iron ore and although chrome which is used in hardening iron ore for the main part price initially increased in the first part of 2014 ,the surplus in iron ore is now likely to flatten out the prices of chrome.
Now added this mix a surprising move has taken place with the sudden lowering of the oil price during the latter part of 2014!
Except to the traditional exporting countries this move has been a Godsend to the whole world which is still recovering from the deepest recession, which reached its lowest point in 2008 in modern times.
This is likely to have an electric effect upon the worlds freight movement stimulating commerce and then with more money to spend on needed goods and transport ,products such as autos and heavy machinery are likely to pick up in time as higher standards of living will start to make their presence felt in demands for resources.
Another thing which is likely to boost profits is that petroleum products make up about a third costs of most mines.
Labour another third, but as mines have become better run they have lessened their dependence on manual labour and gone in for mecinisation to a higher degree.
Both Gold and Platinum are starting to recover. Gold is a cyclical recovery and the reasons for its recovery are not always clear so when buying be sure to take note that reversals might take place at any time I for one think that the price of Gold will pass US Dollars $1300 per OUNCE. Gold shares are out performing the Gold ETF by an average of at least 30% over the last month and are likely to advance further- Naomi
SEE SIDE-BAR FOR TIPS on the special gold and platinum pages.
ALSO SEE POST JAN 1 / 2015: http://sashares2010.blogspot.com
At the moment base and industrial metals are not much better off as main users as China and other industrial users have built up literally mountains of raw materials to keep prices lower for longer periods. A good example of this is iron ore and although chrome which is used in hardening iron ore for the main part price initially increased in the first part of 2014 ,the surplus in iron ore is now likely to flatten out the prices of chrome.
Now added this mix a surprising move has taken place with the sudden lowering of the oil price during the latter part of 2014!
Except to the traditional exporting countries this move has been a Godsend to the whole world which is still recovering from the deepest recession, which reached its lowest point in 2008 in modern times.
This is likely to have an electric effect upon the worlds freight movement stimulating commerce and then with more money to spend on needed goods and transport ,products such as autos and heavy machinery are likely to pick up in time as higher standards of living will start to make their presence felt in demands for resources.
Another thing which is likely to boost profits is that petroleum products make up about a third costs of most mines.
Labour another third, but as mines have become better run they have lessened their dependence on manual labour and gone in for mecinisation to a higher degree.
Both Gold and Platinum are starting to recover. Gold is a cyclical recovery and the reasons for its recovery are not always clear so when buying be sure to take note that reversals might take place at any time I for one think that the price of Gold will pass US Dollars $1300 per OUNCE. Gold shares are out performing the Gold ETF by an average of at least 30% over the last month and are likely to advance further- Naomi
SEE SIDE-BAR FOR TIPS on the special gold and platinum pages.
ALSO SEE POST JAN 1 / 2015: http://sashares2010.blogspot.com
Tuesday, October 7, 2014
Glimmerings of a Resource Recovvery
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
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
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
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