China Tyre Expert

'Lantau International', the Asia-based investment brokerage

by:Tanco Tire,Timax Tyre     2020-11-08

Many investors have been questioning the wisdom of continuing to hold stocks in junior miners when they appear to be lagging the performance of the underlying metals they produce. 'There's a perfectly valid explanation for the situation,' said Mirek Nemacek, senior vice president at 'Lantau International'.

'Input costs like fuel as well as consumables like tires, various items of machinery and wages have risen. The price of oil, as we all know, has surged this year and represents a key item of expenditure for many junior miners,' he concluded.

The firm advised clients to retain their holdings within the junior mining sector adding that the value of stocks was likely to rise to reflect the higher prices of metals like copper, gold and silver in due course.

The firm took the opportunity to add to the junior mining firms to its conviction buy list.

'It is our view that the secular bull market in precious metals is set to continue for as long as central banks like the US Federal reserve continue to resort to the stealth debasement of their currencies in order to reduce the real value of their external debt,' said a 'Lantau International' analyst.

The alert advised clients to acquire stocks in three uranium miners that it believed to were oversold in a kneejerk market reaction to news that authorities in China had suspended approvals for new nuclear installations while they conduct a safety audit of existing plants

'We saw losses in two stocks of more than 30% despite the fact they're sitting on huge uranium deposits that China will need to access if it is to realize its power generation targets by 2020,' said the 'Lantau International' source.

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