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: “Surviving the oil and gas storm”
By the third quarter of 2016, oil prices rose to nearly US$50 and industry fundamentals were improving. As investment in the sector has been minimal for the past two years, industry experts consider the likelihood of demand exceeding supply in the not too distant future to be relatively high – thus, companies that have maintained or increased their production during the turbulence will stand to benefit most. When oil prices started to collapse in late 2014, most companies have reacted quickly and implemented short-term measures to manage their costs. However, as the sector is now entering a new era of lower oil prices, companies must instead shift their focus to strategic long-term cost management to ultimately change their underlying cost base in order to survive in the long run.
A number of companies have been considered by industry analysts to be weathering the oil and gas storm relatively well in one form or another, including successfully implementing long-term cost reduction initiatives and thereby increasing netbacks and operating cash flows, as well as keeping healthy balance sheets through well-managed debt levels. A few of these companies are discussed in more detail below…
* 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.
