Credit Suisse named Teck Resources (TCK-B.TO) and Goldcorp
(G.TO) among its favoured large cap mining and metals issues going
in to the second quarter.
Teck is up around 40 cents while Goldcorp is down the same
Time for RISK-ON: "With 1Q11's ruggedness behind us, the next
leg of the global commodity re-stock momentum is upon us: the
Middle East is to see stimulatory inflows; Japan is in recovery;
China's PMIs troughed in February. The final icing on the cake will
be the week Chinese food prices peak.
"Structurally, our favourite Asian demand "shorts" (copper,
bulks; palladium) continue to await a supply onslaught that refuses
to arrive, more than likely delayed until 2014/15. This results in
prices that refuse to peak. We reject fears that rising interest
rate & USD regimes are BAD for commodities."
Key 2Q11 Price Changes: "Iron Ore (>$130/t to 2014), Coking
Coal (+30%), Silver, Zircon, and Ilmenite receive our most
meaningful upgrades in 2Q11, due to confirmation of increasingly
tight conditions impacting those markets. Meanwhile we have tweaked
our Lead, Zinc and Alumina prices lower.
Global Energy Shortages: "While the world revisits the debate on
the safest, cleanest, most-cost-effective and secure energy mix, we
have consciously chosen not to amend our Uranium or thermal coal
price forecasts. We remain bullish on the outlook for energy, given
the intensifying shortages."
Favoured Large Caps include Rio Tinto (
); Xstrata (XTA.L); Freeport (
); Peabody (
); Teck (TCK-B.TO); Goldcorp (G.TO); Vale (
) and Newcrest Mining (NEM
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