Globe editors have posted this research report with permission of Dundee Securities. This should not be construed as an endorsement of the report’s recommendations. For more on The Globe’s disclaimers please read here. The following text is excerpted from the report:
As part of our analysis we "stress tested" our coverage universe at commodity prices 15% below current spot levels (our new forecasts do not assume a credit crisis developing in China, but we could be wrong). The idea was to determine which companies would find themselves in a bad situation if this commodity bear market is not over (looking at liquidity and cashflow). While we did not use the results of this stress test to set our target prices, it has influenced our ratings.
For the sake of the stress test analysis (our bear case scenario), we used a 15% discount to current spot prices and kept the commodity prices flat across the board except for the long term prices starting in 2018 for which we used our long term price forecast if it was lower.
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- Capstone Mining Corp$0.76+0.02(+2.70%)
- First Quantum Minerals Ltd$10.81+0.26(+2.46%)
- HudBay Minerals Inc$4.80+0.04(+0.84%)
- Lundin Mining Corp$5.25+0.10(+1.94%)
- Polaris Materials Corp$1.200.00(0.00%)
- Taseko Mines Ltd$0.610.00(0.00%)
- Teck Resources Ltd$24.80+0.64(+2.65%)
- Trevali Mining Corp$1.09+0.02(+1.87%)
- Copper Mountain Mining Corp$0.47+0.01(+2.17%)
- Thompson Creek Metals Company Inc$0.70+0.02(+2.94%)
- Nevada Copper Corp$0.57+0.01(+1.79%)
- NGex Resources Inc$1.29-0.01(-0.77%)
- Candente Copper Corp$0.110.00(0.00%)
- Canadian Zinc Corp$0.28-0.01(-1.79%)
- Coro Mining Corp$0.140.00(0.00%)
- Zazu Metals Corp$0.22+0.02(+7.32%)
- Updated September 28 11:38 AM EDT. Delayed by at least 15 minutes.