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”
According to industry analysts, evidence suggests that the commodities sector entered the early stages of a new bull market in Q4 of 2015 to Q1 of 2016 as the industry saw a handful of commodities bottom and surge in price, including gold, silver and crude oil. As no one can accurately and consistently predict the future, it is uncertain whether this bullish tide is instead a retracement in a bear market where lower prices would follow. Experts advise that such retracements tend to be short-lived in both size (percentage change) and scope (duration) – this does not seem to be the case with the current resource sector rebound as it had lasted over six months and saw significant price improvements.
The mining industry is, to a great extent, driven by the price of gold. When gold prices are high, mining companies benefit from fresh investment and increased activity, as well as expand their operations – this was precisely what happened from 2008 to 2012. During this time, some of the industry’s major players made aggressive expansion efforts by using credit, as though these good times would continue indefinitely. These companies then became deeply encumbered with debt that they could not pay off when the commodities sector entered into a bear market from 2013 to 2015. As a result, assets had to be sold by these companies as part of their debt reduction efforts. This strategy, on the other hand, has helped place these mining companies in a much more advantageous financial position now, given that the markets seem to be finally turning around…
* At a value of CAD$50, the guide will be available for free download for a limited time. The offer ends on September 8th, 2017.
