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Hedley Widdup

The mining industry collectively had to address a range of issues to ensure survival between circa 2011 and 2015. Having met the top of the market with bloated balance sheets and unsustainable costs, austerity was rolled out. But unlike many mining initiatives there were no commemorative shirts or hats. The... Show More

Hedley Widdup

There is little more exciting in mining than a discovery. “Discovery” companies (as opposed to “exploration” companies) are rare, the phase characterised by investors speculating on how big a find could be, as inevitably the market has to digest each new drill hole as it is delivered. In this time... Show More

Hedley Widdup

...but that’s what we expect from politicians. Mineral royalties are a well-established mechanism to provide a risk-free financial reward to the ultimate owners of minerals – ie the nation or the state in which a mineral is produced. This is fair – minerals are non-replaceable and therefore compensation is warranted.... Show More

Hedley Widdup

On average, the market is always right. BUT, for miners, the height of booms and nadir of the bust is where the market overshoots driven by extremes of sentiment, and at these times the market for miners is neither rational nor efficient. IE – it is Wrong. The loftier the... Show More

Hedley Widdup

The fundamentals of gold remain strong; inflation should outpace interest rates and global debt remains high. I think gold will find a floor at some stage, and when it begins to move up again it could be quite aggressive. Key catalysts will be ‘the three I’s: Inflation, interest rates, and... Show More

Hedley Widdup

Between 2000 to 2014, ASX gold producers were collectively cash flow negative or neutral, in terms of operating and investing cash flows, and using annual financial numbers. In 2015 margins exploded due to both excellent cost discipline and metal price movement. So gold producers are suddenly achieving multi-cycle high cash... Show More

Hedley Widdup

Gold has experienced the smallest supply growth of all the major metals over the last 15-20 years, by a significant amount. At the same time, there have emerged major new customers in China, India and the Middle East. Gold tends to do well in environments of low to negative real... Show More

Hedley Widdup

I believe a new multi-year resource cycle has started, and that the evolution of this cycle has been remarkably rapid compared with other cycles. Investor sentiment towards miners switched in early 2016 from ‘off’ to ‘on’. This has happened at the turning point from bust to boom in every other... Show More

Hedley Widdup

Sentiment toward miners flipped in early 2016: having seen capitulation in 2015, from January this year investors have been moving back to mining, tempted by recovering metal prices (especially in gold), miners collective new regime of financial and cost discipline, and a lack of growth opportunities across the broader market.... Show More

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