Guys! That article is some related to Copper player like AVB. The commodities market specialists predict it is good bet for Copper in 2012. AVB will release JORC by 2012 as well. Hope it is good timing in 2012. Good luck guys..
Copper and oil best bets for 2012 December 21, 2011 - 7:24pm By BRETT BUNDALE Business Reporter
Commodities investors should place their bets on oil and copper in 2012 while keeping an eye on other base metals and unconventional oil and gas plays, according to Scotiabank’s commodity price index outlook.
Patricia Mohr, vice-president, economics and commodity market specialist at the bank, said rising oil prices will impact companies, investors and consumers in Atlantic Canada.
“The oil story is certainly very important for Newfoundland but also there are a lot of consumers that pay for home heating oil and gasoline,” she said Wednesday.
“One of my top picks is oil because, despite a lot of uncertainty in the global economy, weak performance in the Euro zone and slow growth in United States, oil prices have remained strong.”
Copper is expected to be the best performing commodity in 2012 as supply of the base metal remains low.
High prices have encouraged junior mining company Thundermin Resources Inc. of Toronto to increase exploration efforts at its Stirling property in Cape Breton.
Exploration at the zinc-lead-copper-silver-gold prospect has been positive, with the company noting this month that it has pinpointed four “high priority drill targets” for possible base metal or gold reserves.
Zinc prices are also expected to pick up in 2012, with much stronger prices forecasted for mid-decade due to global mine depletion.
Stronger zinc performance has helped British Columbia mining company Selwyn Resources Ltd. make progress on its plans to reopen the ScoZinc Inc. mine in Gays River, Colchester County.
Michael Chender, CEO of Metals Economics Group, said zinc has attracted attention because of some reports that the supply will dwindle in the next few years.
“We’re studying that ourselves,” said Chender, head of the Halifax company that provides data and consulting services to international players in the mining and metals sector.
“It caught us a little bit by surprise because zinc has been pretty sleepy and well supplied in the market.”
Chender said many investors have turned to copper recently because of high prices and new production is expected to start in the next two to three years.
“Whether that will be enough, too much or too little depends on where demand goes,” he said.
But Chender urged investors to read economic forecasts with a grain of salt.
“Overtime most forecasts are not only wrong more often than right but they are even wrong about whether the price is going to average going up or down the next year, let alone where it’s going to be,” he said.
“Supply and demand are delicately balanced. If you have a significant drop in consumption that could quickly wipe out the effect of oversupply.”
Meanwhile, high oil and condensate prices have attracted capital to liquid natural gas-rich shale formations with increased capital expected to flow to that area. But this has flooded the market with natural gas, driving down prices to rock bottom levels.
Also, warmer winter weather has decreased demand for natural gas, commonly used to heat homes in the United States, further depressing prices.
Natural gas liquids, oils and condensates “are all oil products and are therefore priced closer to crude oil levels,” Mohr said. “Despite the fact that natural gas prices are quite weak, producers are incented to produce shale to access high crude oil prices.”
Natural gas prices are now below the break-even cost of production, causing many dry natural gas fields to be abandoned, she said.
“Natural gas prices are going to be unusually low for the next six months but should rally back late next year and into 2013.”
Forest products also placed among the worst commodity performers in 2011, falling 6.2 per cent below a year earlier. The poor performance continued a long decline amid lower lumber and pulp prices and weak demand for newsprint.
However, as U.S. housing starts are expected to recover in mid-2012, which should improve demand.
AVB Price at posting:
9.3¢ Sentiment: ST Buy Disclosure: Held
