Canadian Mining Journal

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CANADIAN PERSPECTIVE: Regaining profitability

The past year has been one of financial uncertainty, and that is putting it mildly. Both corporations and indi...


The past year has been one of financial uncertainty, and that is putting it mildly. Both corporations and individuals have felt the pinch. The worst appears to be behind us. Metals demand and prices are rising. Individual investors’ portfolios are rebounding.

 

The threat of worldwide inflation remains on the horizon, but one stock picker at www.SeekingAlpha.com says his choices will match or even outpace the rate of inflation. Many of them are resource stocks. Here are of his favourites.

 

Silver Wheaton: He likes the business model of the company that will be the world’s largest silver producer and the cheapest.

 

Suncor Energy: He calls the acquisition of Petro-Canada “brilliant”, a move that leaves the company poised to become one of the world’s largest oil companies.

 

Potash: He doesn’t nominate any one producer, but appears to be bullish on the whole sector.

 

Coeur d’Alene Mines: He thinks this company is overlooked but shouldn’t be. It is now in a position to reap the benefits of positive cash flow thanks to new mine development.

 

Jaguar Mining or Yamana: These companies should appeal to conservative investors, he believes. Either one will provide exposure to South America.

 

BHP Billiton: He thinks this miner will get even bigger in the near future because of its broad exposure to numerous metals. Plus it is set to begin exporting uranium to China.

 

His Top 10 is rounded out with Philip Morris, Pengrowth, the ETN RJA and cash and/or hedges.

 

I mention the article because it is so heavily weighted with mining companies. I am pleased to think some analysts are paying attention to our sector. More importantly, this analyst has great faith in the mining sector.

 

The author is known only as “Hyperinflation”, and his biography includes degrees in finance and accounting. If the sophisticated investor is forgiving of such anonymity, the entire post can be read at http://seekingalpha.com/article/169022-ten-stocks-for-the-next-ten-years.

 

I pass this information along to CMJ readers as a point of interest and of hope. Hope that more investors will consider mining stocks vital to their portfolios.