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Message: More to the story behind miners seeking "safer" juristictions...
3
Sep 04, 2017 11:30AM

https://www.moneyweb.co.za/news-fast-news/worlds-richest-mines-slipping-from-hands-of-multinationals/

But be careful about copper in the near term.

https://www.bloomberg.com/news/articles/2017-09-04/there-s-no-copper-bottom-to-this-inexplicable-rally

In a somewhat related issue, what's important about futures prices for metals?

It's a concern for those dealing in the metals, but not so much from the producers as from the wharehouses.  Futures prices speculators, and consumers of metals want to lock in guranteed prices as close to the time they will need them as can be done.  Users take delivery in the future, speculators don't take delivery.  These prices may or may not be influenced by spot prices so much on a daily basis as by a trend, if it holds.

What's important about spot prices?

It's important for those trading metals at present value, or mining stocks, or looking at trends for negotiating offtake agreements related to future production.  That last example is kind'a the inverse of future's prices as offtake agreements look to trailing spot values, not future ones.

In summary, spot prices are more important to miners (and investors in mining stocks), at least in my opinion, but there is disagreement here. 

VP

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