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Introduction To The Global Mining Industry
Rocky Mountain Mineral Law Foundation – Mining Law Short CourseWestminster, Colorado
Joel Schneyer – Managing Director
November 3, 2014
Adrian Kingshott203.489.3682
Ted Kinsman303.572.6013
Len LaPorta203.451.7799
Reed Macy713.876.8030
Jack Maier202.957.5155
Daniel McBroom303.951.7128
Ray McCormick724.933.6600
Gary Moon650.515.8734
Peter Nam949.706.8440
John O’Neill214.870.5040
Tess Oxenstierna203.524.0888
John Patterson908.403.2135
Jeff Ackerman617.275.4401
David Baker312.466.7677
Bob Balaban 303.792.9400
John Batdorf 415.847.8805
David Brinkley917.817.0375
Brendan Burke303.531.4603
Ricardo Campoy646.382.4000
Vince Cannaliato917.533.4152
Tyler Comann415.272.2463
Ian Cookson617.470.9338
Rick deNey203.972.9100
Mike Ewing973.713.1463
National Footprint, Global Reach: Over 25% of Revenue Cross-Border
United States
International 26 countries 50 offices 300 professionals
North America 7 offices 64 professionals
Award winning partners in the UK, France, Germany, Netherlands and India
Long history of success in Spain, Russia, Japan, Brazil, South Africa and Italy
Over 80 languages spoken
2
Horacio Facca617.312.3420
David Francione617.419.2040
Grant Garbers949.706.8444
Gregory Gerard303.572.6016
Darin Good303.549.5674
Bill Harrison917.596.5533
Sam Hill214.457.4832
CJ Hummel303.217.5743
Paul Janson303.572.6012
Rick Jeffrey917.538.2446
Roger Kahn917.597.2245
Samrat Karnik917.733.6022
RussiaDavid Wolfe12.495.721.1370
Mark Bond12.495.721.1370
SpainMaarten De Jongh34.933.426.227
Igor Gorostiaga34.944.352.311
IndiaKaran Gupta230.213.6514
Mahesh Singhi91.22.6634.6666
JapanOwen Hultman81.3.6895.5521
Masahito Tachikawa81.3.6895.5521
MexicoFausto Garcia52.55.5203.4430
Javier Arce Fernandez52.55.5208.4430
PolandMichael Harvey48.22.236.9227
Piotr Olejniczak48.22.236.9227
South AfricaPieter Veldtman27.82.566.6352
Pieter Venter27.82.566.6352
CanadaDon Lioutas416.496.3075
Eric Klein416.496.3742
South AmericaLeonardo Antunes55.21.3873.8000
Felipe Monaco55.11.4114.2047
United KingdomMark Humphries44.20.7881.2990
Mark Wilson 44.121.654.5000
Benelux Jan Willem Jonkman 31.73.623.8774
Ron Belt31.73.623.8774
France Michel Degryck33.148.246.300
Jean-Pierre Brice33.148.246.300
GermanyMichael Fabich49.611.205.4825
Ervin Schellenberg49.611.205.48.10
ItalyNuccia Cavalieri39.02.92.88.04.00
Stefano Pastore39.02.92.88.04.00
ThailandChayot Vitayanonektavee66.2664.9100
Jim Vorapon Ponvanit66.2664.9100
TurkeyOmer Unsal0212.215.52.40
Brian Pietravalle202.595.4739
Rod Rivera917.969.4270
Carlos Rodriguez858.752.4350
Joel Schneyer303.619.4211
Brad Schreiber949.706.8440
Phil Seefried303.572.6004
Kevin Slocum203.331.5955
Jerry Sturgill208.287.8903
Mike Swartz303.531.5009
Doug Usifer908.432.7792
Bill Young203.622.1044
Sun Jen Yung917.297.8716
1) Prices - Cyclical
2) Demand – BRIC countries are the drivers
3) Raw Material Supply
4) Political Risk in the Mining Sector – Fraser Institute
5) Raising Capital – TSX and TSXV
6) Development Stage Gold Companies Value Proposition Timeline
7) Frac Sand Industry Overview
8) Closing Thoughts
Presentation Outline
3
1) Prices - Cyclical
2) Demand – BRIC countries are the drivers
3) Raw Material Supply
4) Political Risk in the Mining Sector – Fraser Institute
5) Raising Capital – TSX and TSXV
6) Development Stage Gold Companies Value Proposition Timeline
7) Frac Sand Industry Overview
8) Closing Thoughts
Presentation Outline
4
0.000
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3.500
1971
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Al,
Cu
& N
i P
rice (
US
$/l
b)
0.000
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6.000
8.000
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12.000
14.000
16.000
18.000
Ni
Pri
ce (
US
$/l
b)
copper aluminum nickel
- 4 - 6- 4 - 7+ 3
+
2
+ 5
+
2
Average Up Cycle is 3 Years – Average Down Cycle is 5 Years
5
Source: Headwaters Research
Copper Stocks and Copper Prices – Inverse Relationship
Source: International Copper Study Group – 2013 Factbook
6
Cumulative Production0% 40% 60%20% 100%80%
Supply
demand
d1
d2
d3
lower taxesmore gov’t spendinglower interest ratesloose money supply
higher taxesless gov’t spendinghigher interest ratestight money supplysubstitution
Macroeconomics – Supply & Demand
7
Source: Headwaters Research
1) Prices - cyclical
2) Demand – BRIC countries are the drivers
3) Raw Material Supply
4) Political Risk in the Mining Sector – Fraser Institute
5) Raising Capital – TSX and TSXV
6) Development Stage Gold Companies Value Proposition Timeline
7) Frac Sand Industry Overview
8) Closing Thoughts
Presentation Outline
10
Population in Millions
2014 Population Estimate = 7.2 Billion People
Source: Internet World Stats – Miniwatts Marketing Group – estimated world population 7.18 billion
11
Population in Millions
2050 Population Forecast = 9.1 Billion People
Source: Internet World Stats – Miniwatts Marketing Group – US Census Bureau
BRIC Countries of Brazil, Russia, India, China = 38%
13
1) Prices - cyclical
2) Demand – BRIC countries are the drivers
3) Raw Material Supply
4) Political Risk in the Mining Sector – Fraser Institute
5) Raising Capital – TSX and TSXV
6) Development Stage Gold Companies Value Proposition Timeline
7) Frac Sand Industry Overview
8) Closing Thoughts
Presentation Outline
17
Global Sources of Chromite – Potential Supply Issues
Global Reserve Base is sufficient to meet conceivable demand for centuries
No substitute for chromium in stainless steel production
South Africa mining industry not meeting its risk adjusted returns on capital
Kazakhstan unreliable supplier
20
1) Prices - cyclical
2) Demand – BRIC countries are the drivers
3) Raw Material Supply
4) Political Risk in the Mining Sector – Fraser Institute
5) Raising Capital – TSX and TSXV
6) Development Stage Gold Companies Value Proposition Timeline
7) Frac Sand Industry Overview
8) Closing Thoughts
Presentation Outline
21
Difficult Investment Landscape for Miners
Source: Novagold - Presentation San Francisco Gold Conference November 2013
Mexico: New 8% tax on gold profits
South America1. Peru: Construction halted at largest mine due to
gov’t review and social unrest.2. Ecuador: Political obstacles and windfall tax
discourage foreign investment in mining.3. Venezuela: Five mining companies seeking
compensation through World Bank’s arbitration court following nationalizations.
4. Bolivia: Nationalization of various natural resources assets.
5. Argentina: Miners required to repatriate revenues from foreign sales, limitations imposed on foreign exchange. Controls on imports of equipment/supplies have also been tightened
Africa6. Ghana: Increase in tariffs on mines and introduced
a windfall tax, halting project expansions.7. Guinea: New law gives government a 35% stake;
threat of nationalization.8. Mali: Recent military coup creating political
uncertainty9. Kenya: Rising mineral royalties and drilling fees for
mining.10. Congo: Plans to revise mining code, raise taxes and
increase stake in mining projects11. Zimbabwe: Gov’t plans to seize control of foreign-
owned mines.12. South Africa: Ongoing dialogue to nationalize
mining industry.
Russia, Asia & Australia13.Indonesia: Newly proposed legislation limits foreign ownership of mines to 49%.14.Philippines: New royalties and taxes being imposed on mining companies.15.Mongolia: Drafting investment law to restrict foreign ownership.16.Kyrgyzstan: Parliamentary motion calling for increased government stake in one of its largest mines
Heightened Geopolitical/Permitting Risk in North America
22
BC: Mt Polly tailings dam spill
Alaska: EPA’s “stoppage” of PebbleMine under sec 404C of clean water act
Quebec: AmendmentsTo Mining Act
BC: Canada Supreme CourtTsilhqot’in First Nation Ruling
Providing valuable information to the mining industry and policy makers since 1997 on political risk by examining 13 policy areas such as taxation, regulation, land claims, etc.
Sent to 4,100 executives at exploration, development, and mining consulting companies. Asked to respond only for jurisdictions which they know
Responses from 690 executives, representing $3.4 billion in exploration spending in 2013
A composite index of the policy areas
0 is worst policy; 100 is best
www.fraserinstitute.org
Fraser Institute 2013 Mining Survey
23
1) UNCERTAINTY REGARDING THE ADMINISTRATION, INTERPRETATION, OR ENFORCEMENT OF EXISTING REGULATIONS
2) UNCERTAINTY CONCERNING ENVIRONMENTAL REGULATIONS
3) REGULATORY DUPLICATION AND INCONSISTENCIES (includes federal/provincial, federal/state, inter-departmental overlap, etc.)
4) TAXATION REGIME (includes personal, corporate, payroll, capital, and other taxes, and complexity of tax compliance)
5) UNCERTAINTY CONCERNING NATIVE / ABORIGINAL LAND CLAIMS
6) UNCERTAINTY CONCERNING WHAT AREAS WILL BE PROTECTED AS WILDERNESS OR PARKS
7) INFRASTRUCTURE (includes access to roads, power availability, etc.)
8) SOCIOECONOMIC AGREEMENTS / COMMUNITY DEVELOPMENT CONDITIONS (includes local purchasing, processing requirements or supplying social infrastructure such as schools or hospitals, etc.)
9) POLITICAL STABILITY
10) LABOUR REGULATIONS / EMPLOYMENT AGREEMENTS
11) QUALITY OF THE GEOLOGICAL DATABASE (includes quality and scale of maps, ease of access to information, etc.)
12) SECURITY (includes physical security due to the threat of attack by terrorists, criminals, guerrilla groups, etc.)
13) AVAILABILITY OF LABOUR / SKILLS
The Fraser Institute – Policy Survey
24
Source: Fraser Institute – 2013 Mining Survey
2013 Fraser Results - Policy Perception Index
Top 10Sweden (best)FinlandAlbertaIrelandWyomingWestern AustraliaNew BrunswickNevadaNewfoundland/LabradorNorway
Bottom 10MadagascarIndonesiaIvory CoastZimbabweArgentina – MendozaAngolaArgentina – La RiojaPhilippinesVenezuelaKyrgyzstan (worst)
25
E&Y Top Business Risks in Mining Sector
26
Source: E & Y, Business Risks Facing Mining & Metals 2014 - 2015
1) Metal Prices - cyclical
2) Demand – BRIC countries are the drivers
3) Raw Material Supply
4) Political Risk in the Mining Sector – Fraser Institute
5) Raising Capital – TSX and TSXV
6) Development Stage Gold Companies Value Proposition Timeline
7) Frac Sand Industry Overview
8) Closing Thoughts
Presentation Outline
27
1) Metal Prices - cyclical
2) Demand – BRIC countries are the drivers
3) Raw Material Supply
4) Political Risk in the Mining Sector – Fraser Institute
5) Raising Capital – TSX and TSXV
6) Development Stage Gold Companies Value Proposition Timeline
7) Frac Sand Industry Overview
8) Closing Thoughts
Presentation Outline
35
0
200
400
600
800
1,000
1,200
2010 2011 2012 2013
Total Cash Total Production All-In Sustaining
$739$713$624
Source: Metals Focus
$548
$1,066 $1,045
$/o
zMining Cost Inflation
37
Source: Metals Focus
$/o
z
-200
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
-200
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
0 25 50 75 100
Cumulative Gold Production (%)
Total Cash Cost H1 14 Av. H1 14 Gold Price
Total Cash Cost H1 13 Av. H1 13 Gold Price
Industry Cash Cost Curve H1 2014
38
Source: Metals Focus
-200
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
-200
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
0 25 50 75 100
Cumulative Gold Production (%)
All-In Sustaining Cost H1 14 Av. H1 14 Gold Price
All-In Sustaining Cost H1 13 Av. H1 13 Gold Price
Industry All-In Sustainable Cost H1 14
39
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14
Total Cash Cost All-In Sustaining Cost Gold Price
$301/oz
$292/oz$312/oz $338/oz $321/oz
Source: Metals Focus
$/o
z
$535/oz
Margins Under Pressure
40
43
The Institutional Money has lost confidence …
˗ that costs can be controlled
˗ that capital discipline will occur
˗ that restructurings can deliver on promises
˗ that returns on capital employed will improve
˗ that the industry won’t pile back into too many new projects or expensive deals when
prices rebound
˗ that resource nationalism will not overwhelm the industry
˗ that commodity prices will not collapse
˗ that “stuckholders” have an exit
… and the markets reflect this loss of confidence
Institutional Money Is Not Buying Gold Exploration Lottery Tickets
No control – generally passive
Upfront payment for metal –generally passive, much more important financing source today
Rise of PE as active investors and generally absolute control
May have board representation, early toehold in projects
The rise of state backed investments (e.g. China and Korea)
45
Company
Project
Retail
Sovereign Wealth
Inst
itu
tio
nal
Mo
ney
Private Equity
Streaming & Royalty
Strategics
Merchant Traders
Mutual Funds
Major Shift In How Institutional Money Invests In Sector
46
Development Stage Gold Companies trade at an Enterprise Value of $16 per ounce of M, I, & I (NI 43-101) with average estimated project development costs of $91 per ounce
*EV = (share price x # shares) – current assets + total liabilities**9/29/2014 share prices at close Au=$1219.50/oz, Ag=$17.58/oz
However The Development Stage Business Model Looks To Be Unsustainable
47
Once the Project enters the Development Investment Analysis Phase (PEA – Prefeasibility – Feasibility), companies see a long period of share price erosion as studies, permitting and de-risking drag on.
Life Cycle of a Gold Mining Share – Dec 2013 119th Annual Meeting
De-risking&
48
Once the Project enters the Development Investment Analysis Phase (PEA – Prefeasibility – Feasibility), companies see a long period of share price erosion as studies, permitting and de-risking drag on.
Life Cycle of a Gold Mining Share – Dec 2014 120th Annual Meeting
Donlin Gold Project – Advancing Toward a Production Decision
Source: NovaGold 2nd Q & Project Update Presentation, July 2014
49
50
Development Stage Gold Companies Trade on Average at $16/oz Resource
Costs to Complete Drilling, Feasibility & Permitting ~$10/oz Resource
Capital Development Costs $91/oz Resource
Owners Costs Not in Feasibility (25%) $23/oz Resource
Total $140/oz Resource
Actual Trading Market Multiples
• Small Gold Producers $71/oz Resource
• Intermediate Gold Producers $70/oz Resource
• Large Gold Producers $129/oz Resource
• Silver Producers $128/oz Resource
So What Is the Problem?
Focus On Sustainable Development And What You Can Control
Mining investors are increasingly focused on investment returns.
Focus less on project IRR’s and more on Project rank on cost curveAttractive Returns & Economic
51
Staged Development
Low Political Risk
Available Workforce
To minimize capital risk, design around an initial high grade starter pit with
scaled expansion & investigate the lower cap intensity heap leach option
Conventional process circuit. Will take project thru “detailed engineering”
before seeking project finance
Favorable jurisdiction with long established mining laws
Host jurisdiction has available trained and or trainable work force, only
need modest number of expatriate supervisors
Permitting & Social Issues
Have local stakeholders (partners) with financial stake that are on
record supporting project and EIS process
Completion & Overrun Risk
1) Metal Prices - cyclical
2) Demand – BRIC countries are the drivers
3) Raw Material Supply
4) Political Risk in the Mining Sector – Fraser Institute
5) Raising Capital – TSX and TSXV
6) Development Stage Gold Companies Value Proposition Timeline
7) Frac Sand Industry Overview
8) Closing Thoughts
Presentation Outline
52
Industry Observations – Sand Market Overview
54
Major Dynamics
Demand
Supply
Competition
Pricing
Demand is increasing faster than supply Logistics capabilities are no longer a competitive advantage but still a
necessity
There is rapidly growing need for high quality frac sand - more wells per section, more stages per well, more sand per stage
Exponential decline of unconventional shale plays requires continued drilling to keep production levels up
Permitting is becoming harder (NIMBY) Economic and mineable deposits of Northern White sand hard to find
Not much of an issue in an “expanding” market The consolidation in the industry is just beginning
Long-term contract pricing of $50 to 65 per ton (20/70) FOB Mine Prices for 100 mesh have found strength
Industry Observations – Secular Demand Drivers for Proppant
55
Proppant demand is expected to increase over the next several years
Proppant growth has outpaced rig count due to high service intensity and increased horizontal drilling
Pressure pumpers are increasing, facing efficiencies and completing jobs faster
Down spacing creates more locations to drill Use of cemented liners versus sliding sleeves increases sand usage Overall increase in frac sizes per stage Increased number of frac stages per well
Proppant Market Differentiation
56
Source: Emerge Energy Services, Investor Presentation, April 2014
The quality of proppants produced from St Peter Sandstone often is a function of the process flowsheet utilized and careful attention to cleaning, not differences in the raw sand quality
Economics of the Unconventional Plays
57
Source: Benteck Energy, 2nd Annual Frac Sand Conference, Minneapolis 2014
Oil and NGL Plays Earning the Highest Returns
58
Source: Benteck Energy, 2nd Annual Frac Sand Conference, Minneapolis 2014
Frac Sand Demand – Regional Sand Consumption (billion lbs)
59
Source: PacWest Consulting, Frac Sand Logistics Conference – San Antonio, August 2014
Industry Observations – Proppant Demand Expected to Remain Strong
60
1.8
7.0
29.6
51.2
78.5
$40
$48
$58
$68
$80
$25
$35
$45
$55
$65
$75
$85
0
20
40
60
80
100
2002 2007 2012 2017 2022
Raw Frac Sand Resin-Coated Sand, Ceramics, Other Raw Frac Sand Price (S/ton)
(Millions of Tons)
(S/Ton)Historical and Projected Industry Proppant Demand
Source: Hi-Crush Partners Company Presentation, Freedonia Group
Frac Sand Shipping Flows
61
Source: PLG Consulting, 2nd Annual Frac Sand Conference, Minneapolis 2014
Regulatory Authority and Control Nonmetallic Mining in Wisconsin
62
Source: GZA Environmental, 2nd Annual Frac Sand Conference, Minneapolis 2014
Frac Sand Handled By Railroads
63
Source: PLG Consulting, 2nd Annual Frac Sand Conference, Minneapolis 2014
Rail Operating Metrics
64
Source: Freight Car America Inc, 2nd Annual Frac Sand Conference, Minneapolis 2014
Frac Sand Delivered Cost to Wellsite
65
Source: Raymond James, Global Research Report, August 2014
The Miner = $60/t Revenue - $35/t OC = $25/t EBITDA
- Operates 15 locations across the USA, owns 297 tons of sand reserves including 138 million tons which can processed to produce API spec frac sand. In 2013, sold 8.16 million tons of sand at average price of $66.90/ton. Portfolio company of Golden Gate Capital, IPO in 2012; Golden Gate sold out its position in 2013.
- Was formed by private equity firm Insight Equity in 2012. In May 2013, Emerge Energy Services was combined with Superior Silica Sands (“SSS”), Allied Energy Company (“AEC”), and Direct Fuels (“DF”) in a series of transactions that culminated with the initial public offering of Emerge as LP. In 2013, sold 2.65 million tons of sand at average price of $63.28/ton. Still controlled by Insight Equity.
- Was formed by private equity firm Avista Capital Partners in 2010. In August 2012, initial public offering of Hi-Crush as LP. In 2013, sold 1.85 million tons of sand at average price of $82.74/ton. Still controlled by Avista Capital Partners.
Competitive Landscape
66
- Employs over 1,000 people, sold more than 6.0 million tons of sand and value-added sand products in 2011. Portfolio company of American Securities CapitalPartners. There are rumors that an IPO is forthcoming.
- One of the leading providers of high-quality proppant and related logisticsservices to the oil and gas industry in North America. All of Smart Sand’sfacilities are located near major rail transport lines, ensuring reliable, cost-effective delivery to major shale plays in the U.S. and Canada. Portfoliocompany of Clearlake Capital.
- Headquartered in Houston Texas, Cadre Services is a major supplier of API/ISO-quality Premium Hickory® Sand, with principal operations located in Voca,Texas. Portfolio company of Denham Capital Management. July 16, 2014announcement that U.S. Silica Holdings, Inc. to purchase Cadre Services Inc. for$98 million. Adjusted LTM EBITDA of $11.1 million represents purchase price of7.6x EBITDA.
- Strategically located in New Auburn, WI and Garland City, AR to meet thedemands of all major shale plays. Wisconsin plant originates on the UnionPacific railway and has access to Canadian National (CN) and BurlingtonNorthern Santa Fe (BNSF) railways. Portfolio company of Energy CapitalPartners.
Competitive Landscape
67
Median EBITDA Multiple for Trading Comps:
6.0x (Energy) – 6.8x (Materials) – 7.6x (Cadre)
Conclusion
68
July 16, 2014 announcement that U.S. Silica Holdings, Inc. to purchase Cadre Services Inc. for $98 million. Adjusted LTM EBITDA of $11.1 million represents purchase price of 7.6x EBITDA
Median Enterprise Value / EBITDA
Target's Sector
Less Than
$500M
Greater
Than $500M
Less Than
$500M
Greater
Than $500M
Less Than
$500M
Greater
Than $500M
Less Than
$500M
Greater
Than $500M
Less Than
$500M
Greater
Than $500M
Consumer Discretionary 11.3x 10.5x 12.7x 8.5x 10.8x 8.5x 9.5x 9.1x 12.8x 9.7x
Consumer Staples 12.7x 9.7x 7.2x 8.2x 9.5x 8.7x 8.7x 12.7x 9.8x 9.7x
Energy 8.4x 9.9x 10.5x 14.9x 7.2x 9.2x 5.4x 13.1x 6.0x 5.5x
Financials 12.7x 10.9x 12.7x 14.4x 11.0x 17.6x 10.3x 15.3x 12.2x 19.4x
Healthcare 10.8x 10.1x 11.9x 12.7x 12.2x 12.1x 10.2x 11.3x 8.1x 14.8x
Industrials 5.7x 9.3x 7.0x 8.8x 8.3x 11.2x 7.2x 9.7x 8.7x 10.3x
Information Technology 8.1x 13.7x 12.6x 14.9x 9.5x 15.7x 12.0x 11.2x 12.6x 18.5x
Materials 9.3x 11.9x 7.2x 10.9x 9.8x 9.7x 7.8x 8.2x 6.8x 11.4x
Telecommunication Services 5.8x 7.3x 5.9x 7.4x 11.5x 8.7x 7.6x 8.4x 11.3x 11.2x
Utilities 9.5x 11.0x 10.3x 11.3x 9.8x 10.7x 14.0x 8.7x 14.0x 9.9x
2010 2011 2012 2013 2014
Last Twelve Months Ending June 30th of:
Recent Transactions
1) Metal Prices - cyclical
2) Demand – BRIC countries are the drivers
3) Raw Material Supply
4) Political Risk in the Mining Sector – Fraser Institute
5) Raising Capital – TSX and TSXV
6) Development Stage Gold Companies Value Proposition Timeline
7) Frac Sand Industry Overview
8) Closing Thoughts
Presentation Outline
70
Exploration is extremely risky with success rates akin to Pharma R&D developing a drug that can proceeds thru medical trials, expect a large percentage of exploration companies to be forced out of business
Recognition that the replacement cost of “risked reserves” are often lower than current market capitalizations, there will be continued consolidation in the resource sector especially as a way to “bank” value
Burgeoning debt of OECD countries (and US municipalities) causes new wave of “resource taxes”
Without social license to operate, a positive permitting outcome is problematic
Any carbon capture initiatives will have a “taxing” effect on the global economy, reduce demand and GDP
Observations
71
Global Warming – Anthropogenic Carbon Production
Source: Dr. Timothy Gutowski, Department of Engineering at M.I.T., Keynote Address 40th CIRP International Manufacturing Systems Seminar at Liverpool University, 30 May to June 1 2007
These four components respectively are: 1) population, 2) affluence 3) energy intensity 4) carbon intensity
“Results in reducing emissions to slow global warming reveal that while we are improving in both of the technology terms (energy intensity & carbon intensity), these are offset by the growth terms i.e. population and affluence”
72
OECD economies will continue to grow at slow rates, drag of carbon capture initiatives, debt load, aging populations and higher taxes
BRIC countries will extend infrastructure into hinterlands to boost domestic economies, reduce dependency on exports, and reduce tension between the coastal haves and the inland have nots
China will continue to convert US paper assets into ownership of “hard assets” around the world, to have title to the means of production and security of supply with regard to raw materials inputs
For the “mining developers”, Private Equity and its “managed money approach” has replaced the public stock markets as the go to source of capital in the mining sector
The Unconventional Shale Revolution has had (and will have) an enormous global impact and is driving the US economic growth engine
Predictions
73
Real Estate Asset Bubble Collapse
US Housing Starts & Cement Consumption “Turned” 2 Years Before Dow
74
SEDAR – official site that provides access to most public securities documents and information filed by public companies and investment funds with the Canadian Securities Administrators (CSA) in the SEDAR filing system. www.sedar.com
Kitco – latest metal news, commentaries, latest company news releases, technical and fundamental analysis, top performing equities, exchange rates, metal prices and charts. www.kitco.com
The Northern Miner – global mining newspaper published out of Toronto, print and web editions, subscription service. www.northernminer.com
The Fraser Institute – registered non-profit with offices in Canada and the United States with active research ties with similar independent organizations in more than 70 countries around the world. Measures and studies the impacts of markets and government interventions on the welfare of individuals. Produces annual mining policy survey. www.fraserinstitute.org
USGS Mineral Information – mineral summaries by commodity, country, and state. Excellent source of long term data series on production, consumption, and pricing.http://minerals.usgs.gov/minerals/index.html
Institute of Corporate Directors – pre-eminent organization for directors and recognized as the leading authority of standards of good governance. Supports director education though ICD education programs. www.icd.ca
Resources
75
The Headwaters Difference
DEAL OF THE YEAR - TMT
INVESTMENT BANK OF THE YEAR
INTERNATIONAL DEAL OF THE YEAR PROFESSIONAL (B2B) SERVICES
INTERNATIONAL DEAL OF THE YEAR CONSUMER SERVICES
INTERNATIONAL INVESTMENT BANK OF THE YEAR
76
Advocacy – unapologetic and conflict free
Award-winning client advice
Deep pool of transaction experience (over $265 billion)
National footprint (7 offices)
Global reach (25 countries, 50 offices)
Focused industry coverage (specialists, not generalists)
Full product/service offering
#1 investment bank for private wealth in the US
Proprietary capital: we can invest; unique access to family office capital
Long history of success
Teamwork unrivalled in the industry
Capabilities • Culture • Results
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