Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Posts: 19
hi, relatively new to trading. Looking at Mining companies in UK. Seems the main variables to watch are: 1) Metals price which the company mines/sells 2) economic news And the performance of others in same sector. Drag each other up and down. Earnings reports. Am I correct in thinking this? Or am I missing something else? Looking to trade mining sector so just checking it out. Thanks.
Posts: 1,840
You don't say whether you are going trade just producers or those that explore as well. Then there are those that just explore and leave the production to others. Each type has different factors affecting the price. There are other factors such as futures trading, options, placings, rights issues, share incentive schemes for employees, the market makers manipulating the reponse of private investors. ad nauseum. The greatest of these I would say are: proof of asset, cost of realising that asset, demand (current metal price, and political stability. Oh, and greatest of all competant & honest directors. A good place to start is to log on to 'minesite.com' and subscribe to their weekly newsletter. You might pick up know-how from the various BB's here on the JSE site. Here are some EPICs to start you off: PAF; CEY; AFE; AMC; JLP; KMR; Lonmin; Lhon. On those boards you'll often find reference to other miners also. On those BB's, if you click on the name of the poster, it will take you to a page showing that persons last 100 posts. (That is if they've posted that many). Usually if a poster is invested in one miner, then he/she is invested in many more.
Posts: 25,289
One very big thing is Speculation,many thought about half of last years' rises were due to that.Then in autumn there were falls due to shorting,Obama is trying to sort out all the scams,derivatives etc. but its a jungle,we do not appear to be able to have anything but either bubbles or their opposite which I call anti-bubbles lol.
Posts: 25,289
China is another factor,the more recent rises in mining are thought to be due to Chinese stocking up of metals,not much so far a real industrial improvement.And now the stocking appears finished you are finding metals are on a kind of plateau.
Posts: 25,289
Try to access often the fololowing excellent sites-commodity news under Bloomberg and FT News.Kitco Base Metals.Market Oracle the commodities parts.