Tuesday, February 17, 2009

Debt and High Grading to Push up Metal Commodities

[...] One of the obvious beneficiaries of this will be commodities, especially metals as the steel mills once again run at full capacity lifting the prices of coal, iron, manganese and specialty metals like molybdenum, tungsten, magnesium, cobalt and niobium. Copper, lead, zinc and nickel demand will also increase concurrently.

The surviving miners, developers and explorers will once more see an appetite for their shares and financings will again be available. You are already seeing 'bought deals' for up to 100's of millions of dollars. The recipients are profitable companies, mostly in precious metals with money in the bank, low cost operations and advanced gold/silver resources looking to expand. This tells us there is a lot of money on the sidelines, which will eventually invest in traditional risky development and exploration. More...

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