NAI Interactive is proud to present the Global Resource Investment Guide 2017. Since 2012, the global mining industry entered the cyclical adjustment period due to the gloomy global economy. Almost every major commodity in the world has been in severe bear market. However, the downturn of the commodities market sparked innovation as mining companies became much more efficient in their operations.
NAI has put together the Global Resource Investment Guide to help readers understand and recognize the investment opportunities in the current mining and resources market. The resource guide highlights topics such as the rebirth of the resources sector, investment strategies for mining and energy, top resource projects and materials around the globe, and more. Throughout the next couple of weeks, we will be publishing excerpts to introduce you to the contents of the Global Resource Investment Guide 2017.
Taken from the article: “Recovery of the Resource Industries: Is It Time to Invest in Resource Stocks Again? How Mining and Oil & Gas Industries Have Been Doing Since the Downturn”
The major mining companies are not the only ones becoming smarter and more efficient. The juniors have also been able to produce at all-in sustaining costs that are hundreds of dollars lower than the per ounce price. As a result, opportunities exist for the savvy investors to identify these undervalued junior mining companies that have promising businesses – when the industry begins to recover, everyone tends to focus on the big companies, while the juniors remain off the radar.
Royalty and streaming agreements are becoming increasingly popular in the mining industry, as traditional forms of financing through equity and debt are less available for mining companies. Through these agreements, a royalty and/or streaming company provides financing for mining companies in the form of an upfront cash payment in exchange for a percentage of revenues (royalty) or production (stream) from the mine. These agreements allow large mining companies to raise capital in the midst of depressed share prices and mounting debt loads, as they do not result in equity dilution and have minimal direct burden on balance sheets. According to data from Financial Post, a total of US$4.2 billion was raised by mining companies from 11 stream sales in 2015, which was nearly double the amount raised in 2013 of US$2.2 billion…
* At a value of CAD$50, the guide will be available for free download for a limited time. The offer ends after September 8th, 2017.
