By Otto Rock
This was part of last weekend’s edition of The IKN Weekly. Just one small edit, the name of a company at the end.
More on Lead (Pb)
It was hectic and a bit of a squeeze to get the edition out on time last week, since then I’ve had time to fill in some blank spaces and none more so than the intriguing situation in the lead market. What I’ve found by checking the data is that there’s every reason to suppose an acceleration in the demand for lead that justifies the current voracious appetite of smelters for product.
The place to go for reliable supply demand data is the International Lead and Zinc Study Group (ILZSG), based out of Portugal and comprised of a selection of industry experts from all corners of the sector. We’ve made use of their database (22) on these pages previously for the zinc exercise which showed in 2016 the rise in demand (that’s worked out very nicely thank you) and it’s now time for its ugly sister, known in Latin as plumbum and the reason we call out the plumber who’ll often bring his plumb line. This chart derived from the data shows the supply make-up of Pb and the first thing to note is the high percentage of end user supply that comes from the re-cycling business. There are well-established firms that do this and as much as 97% of the lead used in car batteries is scavenged and sent back to battery makers to use again. However, mined supply is also on the rise and with 11 months of data for 2017 already published, our estimated as seen in the charts is likely to be within a tight margin of error and shows supply expanding again after a couple of stagnant years.
Continue reading The Tightening Lead (Pb) Market (from IKN459)
By Otto Rock
TORONTO, March 1, 2018 /CNW/ – Overbooking at quality lunch establishments is the top risk facing mining and metals companies this year, finds an annual survey of Canadian mining executives by KPMG in Canada. As volatility re-emerges in reservations markets, shifting prices will be a key theme as mining industry participants from around the world gather in Toronto next week for the 86th annual Prospectors & Developers Association of Canada convention to get absolutely lathered.
The latest issue of Insights into Mining shows a relatively consistent risk landscape compared to previous years as Canadian and global mining businesses continue to navigate Michelin three star restaurants in a highly competitive industry. Booking risk and the average price for Dom Perignon returned to the Top 10 this year, while access to private rooms, AMEX rhodium cards, controlling bowels and trying to drive Ferraris while drunk, maintaining an antisocial right to talk loudly and managing walking instability also figure high on the list of top risks.
“Restaurant booking risk is once again the leading challenge facing mining executives as they consider the downside of the recent upswing in prices,” says Heather Cheeseman, GTA Mining Leader and Partner, Audit and Risk Consulting, KPMG in Canada. “With weed and crypto stocks making gains, the competition for the best tables at lunch is now fierce and PAs are under pressure to secure the best lunch spots without going on long waiting lists, else incur the wrath of the utter pieces of shit who pay their monthly salaries.”
Below are the Top 10 risks facing Canadian mining and metals companies in 2018:
1. Restaurant lunch reservation risk
2. AMEX rhodium availability (includes risk of embarrassment in using a mere Platinum or Black card in front of peers)
3. Access to best tables
4. Having to be pleasant to “the staff” else face discrimination lawsuits
5. Dom Perignon price risk
6. Private room availability
7. PDAC hangover risk
8. Ability to drive back to office without DUI arrest
9. Controlling bowels
10. Capital allocation of lunch on expense account without anyone noticing the line item
Each year, KPMG in Canada updates the market with critical insights into the risks, challenges and multi-year trends that are top of mind for Canadian miners. Learn more by accessing the Insights into Mining report.
By Otto Rock
Yes indeed ladies and gentlemen, it’s that wonderful time of the year again and in time-honoured style IKN offers up its traditional turkey and stuffing PDAC Bingo Card for your edification and enjoyment at the big Toronto bash next week. As always, instructions are simplicity incarnate:
1) Print off your copy
2) Walk around PDAC next week and when you overhear one of the phrases, cross it off.
3) As soon as you fill your card, send it in to IKN Nerve Centre for your fabulous prize*.
So without further ado, here’s the 2018 edition of PDAC Bingo:
Vote early and often!
*A chance to kiss Tim Oliver’s asses