Growing demand for cheap minerals, energy opening up high-yielding investment opportunities – by Henry Lazenby (MiningWeekly.com – February 23, 2015)

http://www.miningweekly.com/page/americas-home

NTO (miningweekly.com) – In a world where the economic outlook is uncertain and opinions diverge at best, the overarching trend of divergent lifestyles around the world is providing fuel for a new generation of critical-thinking miners have undergone a paradigm shift in approaching the business in a much cleverer, even holistic, way.

It is currently hard to pinpoint whether economies are at inflationary or deflationary inflection points, stabilising or destabilising, and a host of investors have all but written off the mining and exploration and production industries for not providing financial returns in a low-price environment.

While North Americans experience some of the highest-quality lifestyles in the world, this was not the case in places such as China, Indonesia and elsewhere in the developing world, New York-based House Mountain Partners founder and co-author of The Disruptive Discoveries Journal, Chris Berry recently told resource investors in Vancouver. But, they were gaining, and they were gaining fast.

According to him, the burgeoning global middle class and the inevitable economic growth it brought could not be supported without reliable access to cheap commodities and cheap energy, which was opening up a brave new world for shareholders trying to find high-yield investment opportunities, when bond yields globally were at historic lows or, in many cases, negative.

SHOW THE VALUE

According to Berry, a critical question frustrating many investors was: “Where is the value in the commodities sector?”

“One simply can’t have a sector ‘rolling in the mud’ for the past three years, that has been so beaten up, that there’s not tremendous value somewhere within it,” he stressed.

And this was why Berry’s belief in energy metals proved to be a differentiator from the traditional “big-four” metals – copper, gold, silver and iron-ore – which had since 2010 seen a significant run-up of prices coming out of the great recession, which then plateaued and, in recent months, in the case of iron-ore and copper, had collapsed.

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