Investment in Renewables Generates Illuminating Dividends: John McIlveen

The Energy Report: John, how has the renewable space changed in the last five years? John McIlveen: Cost. The cost of standardized technologies for wind and solar have fallen by at least a half in five years, to just below $2 million per rated megawatt ($2M/rated MW), versus the same cost for a coal plant. That coal plant may deliver two to three times the power at that all-in cost, but the costs are about the same because wind and solar do not have fuel and heavy maintenance costs. Fossil fuel plants deliver much more power, but because they pay for their fuel, the overall cost is about the same as for renewables. TER: Bloomberg Business recently wrote that fossil fuels have lost the race with renewables, and Vox responded with some cogent counterarguments. Which is correct? JM: I think Vox. Bloomberg measured the growth of the power grid only. … Continue reading

Chris Mancini’s High-Quality Gold Miners that Have Positioned Themselves Well in the Downturn

The Gold Report: The U.S. Federal Reserve has downgraded its forecasts for both economic growth and inflation. That being the case, why would it raise interest rates? Chris Mancini: There’s a certain contingent in the Fed that believes that its zero interest monetary policy might result in adverse consequences going forward. This contingent is dead set on raising rates and trying to get back to some level of normalcy in interest-rate policy. TGR: There’s a school of thought that holds that the U.S. economy has become addicted to cheap money. What’s your view? CM: There’s no question that much of U.S. economic growth in recent years is due to very low interest rates. The average interest rate on auto loans is the lowest ever. That obviously spurs auto sales. The rates charged for federally subsidized student loans are close to historic lows. That spurs demand for college and university courses. … Continue reading

Survival Guide for the Mother of All Bear Markets from Veteran Bottomfisher John Kaiser

The Mining Report: John, what are the global issues you are watching that could have an impact on commodities, particularly gold? John Kaiser: There is a risk that the economic growth slowdown already underway can deteriorate further, precipitating major general market declines and causing demand for raw materials to flag. This would worsen the current situation where the supply response from the bull period of the past decade is already, in most cases, exceeding demand and, therefore, resulting in a further glut to depress prices and hurt companies involved in both development and mining of raw materials. At the same time, the subdued global growth outlook is creating domestic stresses that in turn are translating into geopolitical conflicts, which have me thinking about security of supply risks should globalized trade come unglued. John Kaiser will be speaking at the Metal Investor Forum, May 30 in Vancouver Click here for free … Continue reading

Why Everyone Is Talking About Scandium: Ryan Castilloux

The Gold Report: At the annual Prospectors and Developers Association of Canada (PDAC) convention in March, scandium was probably the most talked about metal after gold. Please give us an overview of the scandium market. Ryan Castilloux: Scandium initially found applications in Soviet aircraft and weaponry during the Cold War. It wasn’t until the 1990s that commercial uses for scandium emerged when a now-defunct Canadian company, Ashurst Technology, together with a Ukrainian partner, harvested scandium from Zhovti Vody, a historic iron-uranium mine in Ukraine. Ashurst conceived a number of novel uses for scandium-aluminum alloys, including baseball bats and bicycle frames. It developed patents for these applications, later licensing them to Easton Sports, now Performance Group Sports Ltd. (PSG:TSX), and others. What are Ryan Castilloux’s ideas for investing in the rare earth sector? Read about them in The Gold Report Ashurst’s mining operation was short-lived but the commercial uses of scandium … Continue reading

Mining & Marijuana | Ellis Martin & Dudley Baker Interview

Published on Apr 30, 2015 Although Dudley Baker of http://www.marijuanaspeculator.com has never smoked cannabis in his life, he’s not shy about investing in this burgeoning sector with regard to stocks. He’s done well over the years with resource stocks and after following over 250 marijuana related public companies, he’s come up with his Baker’s Dozen cadre of potential investment opportunities. Ellis and Dudley light it up with toke talk in this expose on investing in a very volatile and uncharted arena of companies engaged in the business of bringing smoke to the markets without the mirrors. From Dudley: “The Bakers’ Dozen” is our top 13 stock selections in this space. Currently we have added 7 companies and will complete the task in the next week or so. JOIN US NOW.     … Continue reading

Three Upstream MLPs with the Discipline to Succeed in the Coming Recovery: RBC Analyst John Ragozzino

The Energy Report: John, oil and gas prices have rallied a bit recently. Have we established a bottom? John Ragozzino: Yes. In our recently published Global Energy Research “Commodity Price Revisions” report, we are calling for a meaningful V-shaped recovery beginning in the back half of 2015 and into 2016. This is not significantly different from our prior forecasts, as we adjusted our price forecasts to $54 per barrel ($54/bbl) from $53/bbl in 2015, and from $77/bbl to $74/bbl in 2016. Our thesis on crude oil is largely predicated upon a deceleration of non-OPEC supply growth, as we’ve seen the U.S. onshore rig count drop by more than half over the last five or six months. Additionally, we are seeing a growing inventory of uncompleted unconventional wells, as operators defer completions to an environment of better pricing and higher returns. When you combine these two factors with a global demand … Continue reading

Duncan Hughes: The Weak Aussie Dollar Means Strong Aussie Miners

The Gold Report: Where do you see the price of gold going this year? Duncan Hughes: Gold should remain fairly flat, probably around US$1,225 per ounce (US$1,225/oz), due to the strength of the U.S. dollar. In U.S. dollar terms, gold has underperformed, but when valued in other currencies, gold has actually performed pretty well. TGR: How about nickel and copper? DH: Current spot prices just don’t look sustainable to us. The price of nickel is depressed now because there are 400,000 tons stockpiled in the London Metal Exchange (LME), and the global market is about 2 million tons (2 Mt). The expected increase in the price of nickel following Indonesia’s ban on the export of unprocessed ore has been delayed because of ore coming from the Philippines. But this substitute ore is a lower-quality product, and stockpiles will eventually fall in China. So the supply crunch that was forecast for … Continue reading

Ryan Castilloux’s State of the REE Market Address

The Mining Report: This year we’ve seen a modest rally for specific rare earth elements (REEs), namely terbium, dysprosium, praseodymium and neodymium. Has this bolstered the near-term outlook for rare earth exploration and development projects outside of China? Ryan Castilloux: It has. The recently announced supply agreement between Molycorp Inc. (MCP:NYSE) and Siemens AG (SI:NYSE) is a reflection of how the outlook is improving. The rally we saw earlier this year is an indication that markets for certain rare earth elements are becoming increasingly tight. Without a boost in global production to meet growing global demand, we will see continued strength behind magnetic rare earth prices and several others. “Namibia Rare Earths Inc.’s Lofdal has relatively low preproduction capital requirements.“ Until a few weeks ago the Chinese FOB price of terbium oxide was up nearly 50% year-to-date and dysprosium oxide and neodymium oxide were up about 30%. Prices for these … Continue reading

Ryan Castilloux’s State of the REE Market Address

The Mining Report: This year we’ve seen a modest rally for specific rare earth elements (REEs), namely terbium, dysprosium, praseodymium and neodymium. Has this bolstered the near-term outlook for rare earth exploration and development projects outside of China? Ryan Castilloux: It has. The recently announced supply agreement between Molycorp Inc. (MCP:NYSE) and Siemens AG (SI:NYSE) is a reflection of how the outlook is improving. The rally we saw earlier this year is an indication that markets for certain rare earth elements are becoming increasingly tight. Without a boost in global production to meet growing global demand, we will see continued strength behind magnetic rare earth prices and several others. “Namibia Rare Earths Inc.’s Lofdal has relatively low preproduction capital requirements.“ Until a few weeks ago the Chinese FOB price of terbium oxide was up nearly 50% year-to-date and dysprosium oxide and neodymium oxide were up about 30%. Prices for these … Continue reading

Picking Undervalued Gold Equities Akin to Picking Strawberries: Randall Abramson

The Gold Report: A 10-year U.S. bond yields 2% currently. How is that changing the market? Randall Abramson: We typically view the markets and our investment process through top-down and bottom-up lenses. Our top-down tools are telling us that all systems are “go,” and that there are no immediate hurdles ahead. This low-growth environment has allowed the broader markets to remain in a bull phase for longer than is typical. In fact, we’ve not had even a market correction of 10% or so for way longer than normal. TGR: The World Gold Council (WGC) reports that central banks bought 477.2 tons of gold in 2014, which was nearly a 50-year high. What do you make of central banks buying gold at peak Cold War-era levels? RA: Gold does not have a built-in return. When interest rates are higher, everybody is less apt to hold gold because there’s too much of … Continue reading