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Commodities

Oil majors consider their future

Oil majors consider their future

8 mins. to read

A vertebra in the spinal column of the world economy is causing pain. As I write the price of Brent Crude is at US$59.99. According to the Knoema[i] website, the break-even oil price ranges from US$149.90 in Venezuela to US$60.50 in Qatar. So, on that basis, almost no one is making money in oil right…

This factor could hold the key to Tullow Oil’s future

This factor could hold the key to Tullow Oil’s future

5 mins. to read

Low interest rates have incentivised borrowing in recent years. There has been little reason for companies to reduce their debt levels. Therefore, businesses in a range of sectors have leveraged up their balance sheets in order to improve shareholder returns. This has helped to boost profits and generated higher returns for investors. However, a more…

Randgold’s income attractions are shining through

Randgold’s income attractions are shining through

5 mins. to read

In my view, dividend investing is about more than simply buying a handful of high-yielding shares. I focus less on yield than most dividend investors and more on dividend growth. A long-term investment horizon dictates that a stock which can grow dividends quickly may be worth more than a company with a high yield. Fast-rising…

Where next for multi-bagger Solomon Gold?

Where next for multi-bagger Solomon Gold?

5 mins. to read

My initial recommendation for Solomon Gold (LON:SOLG) last March was based on a value of gold and copper ‘in the ground’ that its drilling was then targeting on just one part of its Ecuadorian Cascabel project, which looked – even at a conservative 1% – to be at least six times Solomon’s then market cap.…

There’s more to come from the miners in 2017

There’s more to come from the miners in 2017

8 mins. to read

The recovery in mining stocks took many by surprise in 2016. However, despite the renaissance, there is still a heavy weight of opinion against the mining sector. With this in mind, the contrarian in me is optimistic for continued outperformance in 2017. I know my writing here is too intermittent to update readers on investment…

Why 2017 could be BP’s year

Why 2017 could be BP’s year

5 mins. to read

BP is entering a new phase in its history, with it having drawn a line under the costly oil spill of 2010. Its valuation and yield have appeal in my view within a sector that remains generally undervalued. Therefore, I feel that now is the right time to buy BP and that 2017 could be…

Why Randgold Resources is one of my top picks for 2017

Why Randgold Resources is one of my top picks for 2017

5 mins. to read

Perhaps the most surprising price movement since the US election has been that of gold. Following a spike to $1,321 per ounce on election night, the precious metal has fallen back to around $1,220 per ounce. That’s surprising because Donald Trump’s election win brings a high degree of uncertainty. He plans to implement major economic,…

Reality strikes at Sirius Minerals

Reality strikes at Sirius Minerals

5 mins. to read

Shares in Sirius Minerals have rightly suffered a major pullback over the past few days, and many private-investor enthusiasts for the stock have been badly burned. The trouble with Sirius is that there is a lot of questionable analysis out there in the public domain right now. Here’s my attempt at setting the record straight……

Oil price weakness a major headache for BHP Billiton

Oil price weakness a major headache for BHP Billiton

4 mins. to read

Since BHP Billiton (LON:BLT) relies on its oil division for 29.6% of its EBITDA, the uncertain outlook for oil leaves me negative on its medium-term future. Hopes were raised regarding the oil price last month when OPEC declared that it had struck a deal to freeze output. Brent rallied in the aftermath and many investors…

Gold miner Centamin has appeal as volatility rises

Gold miner Centamin has appeal as volatility rises

4 mins. to read

Owning Centamin (LON:CEY) as part of a diversified portfolio of shares looks like a sound move given the uncertain outlook for the global economy. One of the big success stories of 2016 has been the rising price of gold. It started the year at $1,061 per ounce and now trades 18.3% higher at $1,255 per…