haywood_250Editor's note: We are extremely pleased to welcome commentary from Haywood Securities, a leading natural resources investment firm, to CEO.ca for the first time. Haywood's Mining Team has generously agreed to provide us with a version of their Weekly Dig report, published each Friday and normally reserved for institutional clients of the firm. The Dig covers macro news as it applies to the mining space and metals prices, as well as their take on the miners making news, and those firms that may be about to make headlines. The Dig is authored by an experienced technical team (Geordie Mark, Mick Carew, Kerry Smith, Stefan Ioannou, Tara Hassan, Colin Healey and Ben Asuncion). You will find the June 27, 2014 edition below and can expect future editions here also. Contact Haywood for more information (haywoodresearch@haywood.com).

The Weekly Dig - June 27, 2014
Haywood Mining Team

Platinum Miners’ Strike Ends, Gold Price Remains Steady

After the 5-month-long strike at South Africa’s platinum mines, mine production is set to restart after the platinum miners and Association of Mineworkers and Construction Union (AMCU) signed a wage deal that will see pay raises for the lowest paid workers. The strike has been devastating for both the miners and workers, with the miners losing approximately US$2.26 billion in revenue, while the workers have lost almost $1 billion in salaries. Following the deal, each of the three major platinum minors affected by the strike warned that considerable time and money would be required to return the operations to full production given the strike’s duration. Meanwhile, gold has remained steady after climbing past the $1,300-per-ounce mark late last week, although short-term demand remains uncertain, particularly with news that authorities in China have uncovered US15.2 billion worth of fraudulent gold-backed loans. Similar loans are also believed to be backed by significant quantities of iron ore and copper. As of Friday afternoon, gold closed at $1,317 per ounce, while silver rose slightly to $21.05 per ounce. Copper also rose slightly to $3.17 per pound for the week.

Haywood Securities

Click here for the full report

This report may be distributed in the following states: nil. Otherwise, this report may only be distributed into those states with an institutional buyer state securities registration exemption.

 

Important Information and Legal Disclaimers

All prices are in C$ unless noted

This report is neither a solicitation for the purchase of securities nor an offer of securities. Our ratings are intended only for clients of Haywood Securities Inc., and those of its wholly owned subsidiaries, Haywood Securities (USA) Inc. and such clients are cautioned to consult the respective firm prior to purchasing or selling any security recommended or views contained in this report.

Estimates and projections contained herein, whether or not our own, are based on assumptions that we believe to be reasonable. The information presented, while obtained from sources we believe reliable, is checked but not guaranteed against errors or omissions. Changes in the rates of exchange between currencies may cause the value of your investment to fluctuate. Past performance should not be seen as an indication of future performance. The investments to which this report relates can fluctuate in value and accordingly you are not certain to make a profit on any investment: you could make a loss.

Haywood Securities, or certain of its affiliated companies, may from time to time receive a portion of commissions or other fees derived from the trading or financings conducted by other affiliated companies in the covered security. Haywood analysts are salaried employees who may receive a performance bonus that may be derived, in part, from corporate finance income.

Haywood Securities, Inc., and Haywood Securities (USA) Inc. do have officers in common however, none of those common officers affect or control the ratings given a specific issuer or which issuer will be the subject of Research coverage. In addition, the firm does maintain and enforce written policies and procedures reasonably designed to prevent influence on the activities of affiliated analysts.

Dissemination of Research

Research reports are disseminated either through electronic medium or in printed copy. Clients may access reports on our website, or receive publications directly via email. Haywood strives to ensure all clients receive research in a timely manner and at the same time. It is against our policy for analysts to discuss or circulate their recommendations internally prior to public distribution. This policy applies equally to recommendation changes, target changes and/or forecast revisions.

For Canadian residents: Haywood Securities Inc. is a Canadian registered broker-dealer and a member of the Investment Industry Regulatory Organization of Canada, the Toronto Stock Exchange, the Toronto Venture Exchange and the Canadian Investor Protection Fund and accepts responsibility for the dissemination of this report. Any Canadian client that wishes further information on any securities discussed in this report should contact a qualified salesperson of Haywood Securities Inc.

For U.S. residents: This investment research is distributed in the United States, as third party research by Haywood Securities (USA) Inc. Haywood Securities (USA) Inc. is a wholly owned subsidiary of Haywood Securities Inc., registered with the U.S. Securities and Exchange Commission, and is a member of FINRA and the Securities Investor Protection Corporation (SIPC). Haywood Securities (USA) Inc. as a U.S. registered broker-dealer accepts responsibility for this Research Report and its dissemination in the United States. Any U.S. client that wishes further information on any securities discussed in this report or wish to effect a transaction in these securities should contact a qualified salesperson of Haywood Securities (USA) Inc.

Haywood Securities Inc. Research Analysts are considered Foreign Research Analysts to the USA and are not registered/qualified as Research Analysts with FINRA. As these analysts are considered Foreign Research Analysts they may not be specifically subject to FINRA (formerly NASD) Rule 2711 and FINRA (formerly NYSE) Rule 472 restrictions on communications with a Subject Company, Public Appearances and trading securities held by a Research Analyst Account.

This report may be distributed in the following states: nil. Otherwise, this report may only be distributed into those states with an institutional buyer state securities registration exemption.

Analyst Certification

We, Kerry Smith, Stefan Ioannou, Tara Hassan, Geordie Mark, Mick Carew, Colin Healey and Ben Asuncion, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.

Important Disclosures

Of the companies included in the report the following Important Disclosures apply:
· n/a
Other material conflict of interest of the research analyst of which the research analyst or member knows or has reason to know at the time of publication or at the time of public appearance:
· n/a