The Weekly Dig - April 13, 2017
by Mick Carew, PhD, email@example.com, Emma Boggio, MSC, CPA and CA, and The Haywood Mining Team
The Weekly Dig - U.S./Russia Remain at Odds over Syria as Tensions Escalate
Following the U.S. missile strike on a Syrian air force base that was carried out in response to a chemical weapons attack reportedly ordered by al-Assad on his own civilians, tensions between the U.S. and Russia have escalated on counter accusations between these nuclear superpowers. This week saw the U.S. accuse Russia of prior knowledge of Syria’s intension to use chemical weapons, while Russia maintained that Syria was not to blame, and that local militia and extremists were responsible. The discourse soured further when the U.S. Secretary of State, Rex Tillerson, received a “frosty” welcome in Moscow this week, with Russian officials accusing the U.S. of inconsistent foreign policy. On the Korean Peninsula, U.S. warships are reportedly positioning themselves as a show of force against North Korea following a missile test, and the possibility of another nuclear weapons test in the very near future. Statements from North Korea’s media have included threats of a nuclear attack on the U.S., although many experts doubt the ability of the rogue state to deliver a nuclear device at such a distance. Nevertheless, the focus will remain on the situation in North Korea as the nation celebrates the 100th anniversary of the birth of Kim Il Sung, the grandfather of current president Kim Jong Un. The complex geopolitical landscape shaping up in Asia and the Middle East, together with President Trump ‘willing’ a weaker US dollar, have helped to bolster the gold price, finishing at $1,289 per ounce on Friday. Both silver (up 1.42%) and platinum (up 1.54%) also rose, finishing at $18.53 and $974 per ounce respectively. It was a different story for base metals, with copper (down 2.94%), nickel (down 3.34%), lead (down 2.03%) and zinc (down 3.48%) all lower. Finally, crude was up 2.64% this week while the Broker Average Price for Uranium (BAP) finished the week at $23.50 per pound.
Important Information and Legal Disclaimers
All prices are in C$ 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 subsidiary, 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.
We, Mick Carew, Geordie Mark, Colin Healey, Pierre Vaillancourt, and Kerry Smith, 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.
Of the companies included in the report the following Important Disclosures apply:
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: