swissaustrian
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Mining equities have once again been underperforming the metals in recent weeks with the exeption of royalty companies like RGLD and FNV and some hot juniors.
Now earnings season is coming up. I think we're gonna see a lot of positive suprises:
1.) The DXY has appreciated heavily. Mining companies who are operating outside the US (and Canada) have a non USD wage and electricity cost structure. This is going to be an enormous benefit as their sales are in USD.
2.) Oil prices have come down significantly over the last quarter. Energy costs (diesel) should have shrunk.
Now earnings season is coming up. I think we're gonna see a lot of positive suprises:
1.) The DXY has appreciated heavily. Mining companies who are operating outside the US (and Canada) have a non USD wage and electricity cost structure. This is going to be an enormous benefit as their sales are in USD.
2.) Oil prices have come down significantly over the last quarter. Energy costs (diesel) should have shrunk.