Www.paradigmsecurities.com.au Barry Dawes B Sc F AusIMM(CP) MSEG MSAA Head of Resources Paradigm...
-
Upload
kyree-everist -
Category
Documents
-
view
213 -
download
0
Transcript of Www.paradigmsecurities.com.au Barry Dawes B Sc F AusIMM(CP) MSEG MSAA Head of Resources Paradigm...
www.paradigmsecurities.com.au
Barry DawesB Sc F AusIMM(CP) MSEG MSAA
Head of Resources
Paradigm Securities
Resource Sector OutlookInvestment Opportunities in
The New Gold Mountain
Australia China Trade & Investment
Hotel Sofitel Wanda
Beijing 10-11 September 2013
www.paradigmsecurities.com.au
DisclaimerNothing in this presentation shall be construed as a solicitation to buy or sell any security
or product, or to engage in or refrain from engaging in any transaction. In preparing this research, Paradigm did not take into account the investment objectives, financial situation and particular needs of the reader.
Before making an investment decision on the basis of this presentation, the reader
needs to consider, with or without the assistance of an adviser, whether the advice is appropriate in light of their particular investment needs, objectives and financial circumstances.
This presentation is based on information obtained from sources believed to be reliable but Paradigm does not make any representation or warranty that it is accurate, complete or up to date. Paradigm accepts no obligation to correct or update the information or opinions in it. Opinions expressed are subject to change without notice and accurately reflect the views of Paradigm at the time of writing.
This presentation has originated from Paradigm (ABN 159 611 060), an Authorised Representative of licensed securities dealer Aureus Capital Pty Ltd (AFS Licence 307 706). Paradigm can gain income through brokerage, capital raising commissions and corporate advisory fees.
www.paradigmsecurities.com.au
Global Demand For Resources
• Non-OECD > OECD demand
• Demand now accelerating
• Current commodity prices at lows
• Investment in resources never better
www.paradigmsecurities.com.au
Non-OECD surpassing OECD
www.paradigmsecurities.com.au
Long term commodity prices
www.paradigmsecurities.com.au
Market Prices - Oil
www.paradigmsecurities.com.au
Market Price - Copper
www.paradigmsecurities.com.au
China Demand For Resources
• Steel industry leading growth
• China takes >40% of metals and energy
• Global supply of resources limited
• Australia has many resources options
www.paradigmsecurities.com.au
China surpassing USA Steel
Source: World Steel Association
www.paradigmsecurities.com.au
China surpassing USA
Source: Stockcharts
www.paradigmsecurities.com.au
China surpassing the World!
Source: Stockcharts
www.paradigmsecurities.com.au
Market Prices - Commodities
WE ARE HERE
www.paradigmsecurities.com.au
Resources Market Wave Psychology
www.paradigmsecurities.com.au
Market ActionASX XMM Mining Index XMM -57% from April 2011
www.paradigmsecurities.com.au
Market ActionASX XGD Gold Index XGD -77% from April 2011
www.paradigmsecurities.com.au
Market ActionASX XSR Small Resources Index XSR -70% from April 2011
www.paradigmsecurities.com.au
Global Economy Robust
• Global equity markets near all time highs
• Commodity prices rising
• Global interest rate cycle at lows
Transition from disinflation to inflationMajor low-risk investment opportunity
www.paradigmsecurities.com.au
US T Bonds Yields Bottoming
Source: World Steel Association
INFLATION
DISINFLATION
CHANGE
www.paradigmsecurities.com.au
Resources Boom Resuming• BHP says 75% more commodities needed• Australian Iron Ore Industry is very positive• Onshore Oil Boom underway• Metals demand strong, inventories tight • Precious metals in strong markets• Technology metals growing rapidly• Uranium production to experience major growth • Fertilizers are new sector
www.paradigmsecurities.com.au
Global Capital Flows• Global bond markets peaking
• Capital to flow from cash and bonds to equities
• Capital flows also into commodities
• Commodity equities underweight in portfolios
• A$ to attract capital and remain strong
www.paradigmsecurities.com.au
Investment Opportunities• Resources shares mispriced and too low • Mining industry earnings bottoming• Growth in production in most sectors• Australian cost structure being reduced • Onshore oil sector in major long term boom • Exploration resulting in important discoveries• A$ to remain strong • Outstanding returns expected
www.paradigmsecurities.com.au
Wide Investment Choice
• Explorers, Developers and Producers• >60 iron ore companies• >20 Copper companies• >50 gold companies• >30 oil and gas companies• >100 other resources companies
www.paradigmsecurities.com.au
ASX Metals and Mining
www.paradigmsecurities.com.au
ASX Small Resources
www.paradigmsecurities.com.au
ASX Gold Index
www.paradigmsecurities.com.au
A$ vs US$ 1913 - 2013
Source: Thechartstore.com
www.paradigmsecurities.com.au
Conclusions• Resources Boom is far from over• Cyclical lows provide low risk entry points• Many new projects available to develop • Portfolio investment encouraged• Opportunities for 5-25% equity interests• Commodities from iron ore, coal, gold, oil & more• Resources Sector to provide long term growth• Expect growth in earnings and dividends • Merger and Acquisition activity to increase
Paradigm provides opportunities and advice
www.paradigmsecurities.com.au
The Paradigm Shift
• Barry Dawes
• +61 2 9222 9111