haywood_250Editor's note: We are extremely pleased to welcome commentary from Haywood Securities, a leading natural resources investment firm, to CEO.ca for the first time. Haywood's Mining Team has generously agreed to provide us with a version of their Weekly Dig report, published each Friday and normally reserved for institutional clients of the firm. The Dig covers macro news as it applies to the mining space and metals prices, as well as their take on the miners making news, and those firms that may be about to make headlines. The Dig is authored by an experienced technical team (Geordie Mark, Mick Carew, Kerry Smith, Stefan Ioannou, Tara Hassan, Colin Healey and Ben Asuncion). You will find the June 27, 2014 edition below and can expect future editions here also. Contact Haywood for more information (haywoodresearch@haywood.com).

The Weekly Dig - June 27, 2014
Haywood Mining Team

Platinum Miners’ Strike Ends, Gold Price Remains Steady

After the 5-month-long strike at South Africa’s platinum mines, mine production is set to restart after the platinum miners and Association of Mineworkers and Construction Union (AMCU) signed a wage deal that will see pay raises for the lowest paid workers. The strike has been devastating for both the miners and workers, with the miners losing approximately US$2.26 billion in revenue, while the workers have lost almost $1 billion in salaries. Following the deal, each of the three major platinum minors affected by the strike warned that considerable time and money would be required to return the operations to full production given the strike’s duration. Meanwhile, gold has remained steady after climbing past the $1,300-per-ounce mark late last week, although short-term demand remains uncertain, particularly with news that authorities in China have uncovered US15.2 billion worth of fraudulent gold-backed loans. Similar loans are also believed to be backed by significant quantities of iron ore and copper. As of Friday afternoon, gold closed at $1,317 per ounce, while silver rose slightly to $21.05 per ounce. Copper also rose slightly to $3.17 per pound for the week.

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We, Kerry Smith, Stefan Ioannou, Tara Hassan, Geordie Mark, Mick Carew, Colin Healey and Ben Asuncion, 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.

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