Expert Tips For Investing In Mining Companies
The mining industry has the potential to make investors a lot of money
. But they could also lose a lot of money, especially when you consider recent market conditions for copper that is extracted from raw minerals with th ehelp of
jaw crusher and other materials, like coal. I chose the following mining companies because they are each facing difficult circumstances due to problems in the regions where they work, a lack of expansion options, and uncertain market conditions for some of their materials. At the same time, most of them are likely to pull through, due to a variety of solutions. These solutions range from diversifying revenue, to waiting out the downfall of competitors. However, I do not think all of them are going to make it through the rough patch. As the world"s second largest mining company, Vale appears to be making wise decisions on the side of capital by branching out from its main focus, which has been Brazilian iron ore. Those deposits are bound to run out sooner rather than later. The thing that worries me is that they have opted to go into coal, an industry that is facing massive decline in recent months. While Vale"s near future looks pretty secure, once Brazil stops providing for the company, I expect it to begin struggling for survival, unless it can get into multiple revenue streams in a more promising way. For now, though, the short-term seems to indicate another upswing and a more or less positive outlook for investors. I would say it"s a good time to buy in, or to hold if you"re already in as far as you want to be. China makes up over half of Asia"s copper consumption, and roughly 30% of the world market"s demand. Last year saw the country drawing on its own resources, which pushed sales and prices down for companies like Southern Copper. This trend could turn around this year, though. If China has depleted its reserves, I believe it will be restocking for the next few months, if not the full year, so copper demand is bound to grow again. jaw breakers:http://www.hxjqchina.com/product-list_30.html mobile jaw crushers:http://www.hxjqchina.com/product-list_11.html Rio Tinto plc (RIO) has its hands in bauxite, copper, and gold, among others, three materials that are proving pretty lucrative, although this company also experienced the effects of the bipolar copper market. However, due to the impairment charge on its aluminum business, net earnings for 2011 dropped 59% compared to the previous year. Luckily, the company"s dividend increased by 34% and Rio"s CEO and CFO went without their usual annual bonus, to keep it competitive. On the whole, Rio"s value has picked up in the new year, and I see no reason why it should suddenly deflate without any warning. Hecla Mining Co. (HL) had a good past few trading sessions, but overall the company"s value has been on a steady decline for over a year. This could be bad news for the largest silver producer in the United States, but I don"t think so. With projects and new developments expanding, Hecla seems to know where it"s going. It hasn"t limited itself exclusively to silver, but at this point, it looks like even if it had, it wouldn"t have much to worry about. The company forecasts production growth for 2012, and I would say it has a lot of untapped material out there to fulfill this promise.As the professional manufacturer of complete sets of mining machinery, such as
china sand washer, Henan Hongxing is always doing the best in products and service.
by: chris lee
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