Events/2016 south africa/south africa 2
DARK COMMODITIES...
This $2 Stock is Your Secret Key to 263% Profits and More in the Next 12 Months And Beyond
The Rebirth of the Cycle
While Investors are Focused on Precious Metals… The Real Opportunity Lays with Dark Commodities?
The End of One Cycle Signals the Beginning of Another
How Cycles Work in the Commodities Market
We Are at the Ideal Entry Point The Point of Intense Pessimism and the Beginning of Rationality Lonmin - close mine shafts that contribute 100,000 platinum ounces to its current annual production of 730,000 ounces. Freeport-McMoRan, suspend mining operations in its Miami mine and decrease its Tyrone mine production by 50%. In September 2015, Freeport output of El Abra mine in Chile by 50% On October 22, Freeport decrease its copper production from its Sierrita mine by 50% Glencore announced its plans to close its Mopani operations in Zambia and the Katanga mine in Congo for a minimum of 18 months. At the end of September, Chile’s second-biggest copper mine, Collahuasi, announced its plans to cut output because of challenging market conditions. Asarco announced production cuts in August
We Are at the Ideal Entry Point The Point of Intense Pessimism and the Beginning of Rationality Lonmin - close mine shafts that contribute 100,000 platinum ounces to its current annual production of 730,000 ounces. Freeport-McMoRan, suspend mining operations in its Miami mine and decrease its Tyrone mine production by 50%. In September 2015, Freeport output of El Abra mine in Chile by 50% On October 22, Freeport decrease its copper production from its Sierrita mine by 50% Glencore announced its plans to close its Mopani operations in Zambia and the Katanga mine in Congo for a minimum of 18 months. At the end of September, Chile’s second-biggest copper mine, Collahuasi, announced its plans to cut output because of challenging market conditions. Asarco announced production cuts in August
We Are at the Ideal Entry Point The Point of Intense Pessimism and the Beginning of Rationality Anglo announced it will sell or shut down 60% of its mines — cutting 85,000 jobs — and will pay no dividend for at least 18 months. Rio Tinto cut its capital spending again, already down by US$13.5 billion over the last three years, to US$5 billion in both 2015 and 2016. Glencore, a huge coal producer, announced it will cut coal production at an Australian mine in 2016. BHP Billiton has announced it is slashing capex at Jansen by 40%, BHP's Canadian president said the miner was simply "doing more with less" as the commodities market remains depressed. The world's third-largest producer BHP, cut iron ore guidance by 10 million tonnes The news came a day after Rio Tinto, the number two producer cut guidance by 20 million tonnes
A Familiar Pattern
The Rally… Has a LOOOONG Way to Go
Glencore (GLCNF) World's largest commodities trader Only trades Dark Commodities (no gold or silver to speak of) Massive merger with Xstrata during commodities boom Hit by falling prices...but they also are traders so the blow to their profits was not as severe as if they were just mine operators Time to shed non core assets and debt
Glencore (GLCNF) Investors are underestimating its financial strength Investors are underestimating its leverage to dark commodities Investors are not paying attention to the signs of a bottom in the dark commodities market – too focused on gold Shares are up from their lows, but have a long way to go They are selling billions in non core assets and reducing debt rapidly
Glencore (GLCNF) Glencore is the Trading Arm They Trade or Produce Over 90 Commodities: Energy (oil, coal) Metals (copper, zinc, Nickel, Ferro Alloys, Aluminum) Agriculture (wheat, corn, barley, soybeans, cotton, oils)
Glencore (GLCNF) Xstrata is the Mining Arm Operations all over the world Fourth Largest Miner in the World When the two companies merged in 2013, the deal was valued at $66 billion and went higher than $80 billion The market cap today is $22 billion (smaller than Tesla) Revenues: $170 Billion (Down from $236 billion in 2012)
Macro Catalysts Falling Dollar good for Commodities Commodities Super Cycle Bottoms Easy Money Stimulus Polices Worldwide Supply Contracting as Mines Shut Down or Reduce Supply
Micro Catalysts Rapid Debt Reduction Non Core Asset Sales Bonds Recently Priced at 2.25% Hated Company Huge Cash flow and Profit Potential in the Years Ahead World Class Mines World Class Trading Operation (over 50% of global copper market)
Price Target Current Price: $2.20 All time High: $8.00 Today's catalysts (combined with weakening dollar) could send price back to all time highs, especially since the company is emerging stronger thanks to reduced debt
One Stock That Dominates and Controls the Global Dark Commodities Market
GLCNF
The Rebirth of the Cycle
While Investors are Focused on Precious Metals… The Real Opportunity Lays with Dark Commodities?
The End of One Cycle Signals the Beginning of Another
How Cycles Work in the Commodities Market
We Are at the Ideal Entry Point The Point of Intense Pessimism and the Beginning of Rationality Lonmin - close mine shafts that contribute 100,000 platinum ounces to its current annual production of 730,000 ounces. Freeport-McMoRan, suspend mining operations in its Miami mine and decrease its Tyrone mine production by 50%. In September 2015, Freeport output of El Abra mine in Chile by 50% On October 22, Freeport decrease its copper production from its Sierrita mine by 50% Glencore announced its plans to close its Mopani operations in Zambia and the Katanga mine in Congo for a minimum of 18 months. At the end of September, Chile’s second-biggest copper mine, Collahuasi, announced its plans to cut output because of challenging market conditions. Asarco announced production cuts in August
We Are at the Ideal Entry Point The Point of Intense Pessimism and the Beginning of Rationality Lonmin - close mine shafts that contribute 100,000 platinum ounces to its current annual production of 730,000 ounces. Freeport-McMoRan, suspend mining operations in its Miami mine and decrease its Tyrone mine production by 50%. In September 2015, Freeport output of El Abra mine in Chile by 50% On October 22, Freeport decrease its copper production from its Sierrita mine by 50% Glencore announced its plans to close its Mopani operations in Zambia and the Katanga mine in Congo for a minimum of 18 months. At the end of September, Chile’s second-biggest copper mine, Collahuasi, announced its plans to cut output because of challenging market conditions. Asarco announced production cuts in August
We Are at the Ideal Entry Point The Point of Intense Pessimism and the Beginning of Rationality Anglo announced it will sell or shut down 60% of its mines — cutting 85,000 jobs — and will pay no dividend for at least 18 months. Rio Tinto cut its capital spending again, already down by US$13.5 billion over the last three years, to US$5 billion in both 2015 and 2016. Glencore, a huge coal producer, announced it will cut coal production at an Australian mine in 2016. BHP Billiton has announced it is slashing capex at Jansen by 40%, BHP's Canadian president said the miner was simply "doing more with less" as the commodities market remains depressed. The world's third-largest producer BHP, cut iron ore guidance by 10 million tonnes The news came a day after Rio Tinto, the number two producer cut guidance by 20 million tonnes
A Familiar Pattern
The Rally… Has a LOOOONG Way to Go
Glencore (GLCNF) World's largest commodities trader Only trades Dark Commodities (no gold or silver to speak of) Massive merger with Xstrata during commodities boom Hit by falling prices...but they also are traders so the blow to their profits was not as severe as if they were just mine operators Time to shed non core assets and debt
Glencore (GLCNF) Investors are underestimating its financial strength Investors are underestimating its leverage to dark commodities Investors are not paying attention to the signs of a bottom in the dark commodities market – too focused on gold Shares are up from their lows, but have a long way to go They are selling billions in non core assets and reducing debt rapidly
Glencore (GLCNF) Glencore is the Trading Arm They Trade or Produce Over 90 Commodities: Energy (oil, coal) Metals (copper, zinc, Nickel, Ferro Alloys, Aluminum) Agriculture (wheat, corn, barley, soybeans, cotton, oils)
Glencore (GLCNF) Xstrata is the Mining Arm Operations all over the world Fourth Largest Miner in the World When the two companies merged in 2013, the deal was valued at $66 billion and went higher than $80 billion The market cap today is $22 billion (smaller than Tesla) Revenues: $170 Billion (Down from $236 billion in 2012)
Macro Catalysts Falling Dollar good for Commodities Commodities Super Cycle Bottoms Easy Money Stimulus Polices Worldwide Supply Contracting as Mines Shut Down or Reduce Supply
Micro Catalysts Rapid Debt Reduction Non Core Asset Sales Bonds Recently Priced at 2.25% Hated Company Huge Cash flow and Profit Potential in the Years Ahead World Class Mines World Class Trading Operation (over 50% of global copper market)
Price Target Current Price: $2.20 All time High: $8.00 Today's catalysts (combined with weakening dollar) could send price back to all time highs, especially since the company is emerging stronger thanks to reduced debt
One Stock That Dominates and Controls the Global Dark Commodities Market
GLCNF
