【Native Speaker每日综合训练—42系列】【42-13】经管

neverland1021

内容：wensd1111 编辑：neverland1021

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大家好，以后星期五的经管由我wensd1111来负责~和第一次发帖，电脑开始有问题TaoRs92估计也对我电脑灰常无语。。不过真的谢谢猴哥，TaoRs92还有各位的帮助， 有任何意见或者建议欢迎大家随时拍砖~（大脸贴上）

本次的Speaker是从麦肯锡网站上截取。 本期以矿业为主（是不是有种高冷的赶脚？），这也是wensd1111的大学专业，现在工作和以后工作领域。wensd1111对矿业有信心，虽然现在哀鸿遍野。

逗比的穿越一句：挖掘技术哪家强？

好，废话不多说，大家enjoy~

Part I: Speaker

How resource scarcity is driving the third Industrial Revolution

Source:

http://www.mckinsey.com/insights/energy_resources_materials/how_resource_scarcity_is_driving_the_third_industrial_revolution

[Rephrase 1, 11:02]

neverland1021

Part II: Speed

Junior miners ‘starting to disappear’ as grim market reality takes hold
Peter Koven | September 25, 2014

[Time 2]
The junior mining sector is in such brutal shape right now that most companies are unwilling to even pay for booths at conferences that are geared to them.

The annual Cambridge House International conference in Toronto, going on Thursday and Friday, has shrunk to a fraction of its former size. Just a few dozen junior miners elected to host booths at what used to be one of the sector’s hottest events during the resource bull market.

There is a good reason why almost every junior company decided to sit it out: they have little to no cash, and no prospects of raising any in the near future. Investor appetite for small mining stocks has simply evaporated over the last several years after they lost billions of dollars on these companies. Other sectors of the market have performed much better and drawn their attention elsewhere.

Junior miners have always been a resilient group, and there was a fair bit of optimism on the conference floor on Thursday. But that was tempered by the grim reality of where these companies find themselves.

It will be hard to raise capital for several years

“It will be hard to raise capital for several years,” analyst John Kaiser warned in a presentation. He said there are around 700 mining companies on the TSX Venture Exchange with negative working capital, and the total number of small miners is shrinking. “They are starting to disappear,” he added.
[240 words]

[Time 3]
Indeed, a lot of junior mining firms have exited mining completely and moved onto some other business, notably medical marijuana. Some of them were at Toronto’s first marijuana investment conference back in June, where the atmosphere was considerably more upbeat than this week’s Cambridge House show.

Lack of cash was a topic on everyone’s mind. Given the rough market conditions, a lot of companies have decided to hoard their cash and do absolutely nothing until market conditions improve and they can raise money again. But miners at the conference said that will not work, because investors will just forget about you.

“If you don’t do anything, there’s no news and you’re not giving the market what it needs,” said Bill Fisher, executive chairman of GoldQuest Mining Corp. and former chairman of market darling Aurelian Resources Inc. “To survive it, you just have to keep active.”

If companies cannot afford to drill, Mr. Fisher said they should be doing geophysical work and other things that cost less money. He also recommended merging smaller companies to reduce overhead costs, which has been happening over the last couple of years.

Besides raising capital, another key topic at the conference was sinking gold prices. The Cambridge House show has always been a gathering point for some of the world’s most outspoken gold bugs, and they continued to pound the drum for bullion on Thursday despite a bear market that has pushed it down to around US$1,220 an ounce.

“The U.S. dollar is on its last legs,” predicted John Ing, president and gold analyst at Maison Placements Canada. Others echoed that view.

Not surprisingly, there was plenty of criticism lobbed at Goldman Sachs, which predicted gold will hit US$1,050 by the end of the year.
[290 words]

Source: http://business.financialpost.com/2014/09/25/junior-miners-starting-to-disappear-as-grim-market-reality-takes-hold/

Metals and Mining Turnaround Coming
Paul Ebeling | September 29, 2014

[Time 4]
After a strong SuperCycle run just after Y 2000, the top metals and mining stocks have been hammered over the past 4 yrs. If marks  for most of the top stocks and commodities stay where they are now, this will be the 4th yr running that mining underperforms global markets, the worst performance run since the mid-1990s.

A new research report from the global metals and mining team at Credit Suisse (NYSE:CS) cites factors most investors in the stocks are aware of; slowing growth in China and an overall lack of global demand.

With valuations of the major metals and mining stocks lower, and expectations so low too, the right stocks could show big gainers for patient investors in the years ahead

Agnico Eagle Mines Ltd. (NYSE: AEM) completed the joint acquisition of Canada’s Osisko Mining and its Canadian Malartic mine this Summer, which the company purchased together with Yamana Gold. The Osisko deal guided investors on both companies in recent months, so any positive news on the performance of the Malartic mine could have an immediate effect on valuation. The Credit Suisse team feels the sell-off after second-quarter results is way overdone, as potential at the new mine joint-venture could be significant.

Agnico Eagle investors are paid a 1.06% dividend. The Credit Suisse target price is 49. The Thomson/First Call estimate is 41.22. The stock closed Friday at 29.89/share in New York
[232 words]

[Time 5]
Eldorado Gold Corp. (NYSE: EGO) is another top pick at Credit Suisse. The company engages in the exploration, development, mining and production of gold properties in Turkey, China, Greece, Brazil and Romania. The company also explores for Iron, Silver, Lead, Zinc and Copper ores. The Credit Suisse analysts point out that the company is a consistent, low-cost operator with solid valuation upside to its net asset value. They also cite Northside potential could be tied to pending permits in Greece and China.

Investors in Eldorado Gold are paid a small 0.25% dividend. Credit Suisse’s price target is 10, while the consensus is at 9.06. Shares closed Friday at 6.91/shr in New York..

Goldcorp Inc. (NYSE:GG) is another stock rated Outperform that ranks high at Credit Suisse. The analysts believes that the company deserves a premium valuation to its peers due to its excellent balance sheet, growth profile with lower cost, new mines coming on line, longer average mine life and superior dividend yield. The company operates as a Gold producer involved in the exploration, development and acquisition of metal properties in Canada, the United States, Mexico and Central and South America. Over the past few years Goldcorp has been altering its mine plans, cutting spending and disposing of assets in order to reduce costs and focus on the most profitable production.

Investors are paid a 2.5% dividend. Credit Suisse has a 33 price target, and the consensus target is 30.62. Goldcorp finished Friday trading at 23.49 in New York.
[251 words]

[Time 6]
Rio Tinto PLC (NYSE: RIO) is involved in the mining and production of Aluminum products, including bauxite, alumina and Aluminum; Copper, Gold, Silver and Molybdenum, Diamonds, borates, salt and titanium dioxide feedstocks, as well as high-purity Iron, metal powders, zircon, and rutile; thermal and coking Coal and Uranium; and Iron ore. The stock has been weak over the past 2 yrs due to falling Iron ore prices, but at current marks the Credit Suisse team sees a value case with the company exiting its capital expenditure intensive Iron ore growth phase and delivering significant low-cost volume growth.

Rio Tinto investors are paid an attractive 4% dividend. The consensus target is 65, and shares closed on Friday at 50.47/shr in New York.

Southern Copper Corp. (NYSE:SCCO) is a mining company where the COB has made major purchases over the past 2 months. The Credit Suisse analysts see the company’s mining projects coming on at a competitive cash cost, which will maintain Southern as one of the world’s most profitable Copper producers. It is expected to become energy self-sufficient in Mexico, where energy accounts for about 35% of costs.

Investors are paid a 1.62% dividend. The Credit Suisse price target is 41,  the consensus is posted at 36.09. The stock closed on Thursday at 29.77/shr in New York.

Given the drastic underperformance of these mining and metals companies, and the possibility that demand for base and precious metals will expand, these are the kind of stocks that  long-term growth participants, buy and wait for the turn, which is likely to come.
[280 words]

Source:
http://www.livetradingnews.com/metals-mining-turnaround-coming-73744.htm#.VCn5pWqKCM8

neverland1021

Part III: Obstacle

Changes in Chinese investment in the International Minerals Industry

[Paraphrase 7]
China is the world’s second largest economy and has become one of the largest consumers of mineral resources (World Bank, 2013 & WTO, 2013).  Despite being one of the major global mineral resource producers and importers, China faces a relative shortage of resources.  In order to sustain the development of China’s economy, the government has set out a “Going Out Policy” to encourage Chinese companies to diversify their reliance on importing key commodities through the open market, by investing in resource companies and assets overseas (China State Council 2006).  

The increase in China’s demand for mineral resources in the past few decades has been the dominant contributor of the growth of the global resource industry.  In 2011, the value of mineral imports into China totalled USD240.5 billion (WTO, 2013).  China has become the key importer for several key commodities, and in 2012, China imported 289 million tonnes (Mt) of thermal coal, 743.55 Mt of iron ore and 4.65 Mt of copper (Wong and Lian, 2013).

In addition to imports, China tops the global foreign investment list for the energy and minerals sectors, with a cumulative total of USD99.3 billion in investment in mining and exploration projects (Figure 1, Heritage Foundation, 2013). The Australian mining industry has been a significant recipient of this investment, totalling USD36.87 billion since 2006 (Ferguson and Hendrischke, 2013).  Other regions receiving significant investment include Africa (USD 22.76 billion), South America (USD17.23 billion) and broader Asia (USD18.8 billion; Heritage Foundation, 2013).  

Iron ore, coal and copper exploration and mining companies are the main recipients of direct Chinese investment.  Australian examples of such investment include Roy Hill (off take agreements with Shougang Group and Yaxin Steel signed in 2012), ongoing investment in the New South Wales Coal industry by the Yanzhou Coal Mining company Ltd through their stake in the ASX listed Yancoal (2005), and more recently the purchase of the North Parkes copper – gold Project by the privately owned China Molybdenum (2013).  Chinese investment in the mineral resources sector is also influenced by a variety of other factors, including: vertical integration of downstream manufacturers (e.g. Baosteel, Talison Lithium); power utilities securing fuel supply (e.g. Guangdong Nuclear Power Groups acquisition of Extract Resources) or a company’s strategic position on a particular commodity (e.g. Focus Minerals placement to Shandong Gold).  

Foreign investment by Chinese companies has traditionally focused on advanced resources projects and / or companies with established mining operations.  By direct investment in established organisations with successful operations, Chinese companies have been able to inherit effective western work practices, experienced management and compliant reporting practices that adhere to local regulatory requirements and the expectations of western investors.  However, there is a growing trend towards investment in projects at earlier stages of development.  Investment into early stage exploration includes such companies as the ASX listed Chinalco Yunnan Copper Resource Ltd, Sovereign Gold Ltd, Dragon Energy Ltd, Zeus Resources Ltd and Energy Metals Australia Ltd. Investment in such early stage exploration primarily represents a higher-risk strategy with respect to likely discovery and successful transition to production.  However, this is countered by the relatively high returns with discovery. In these examples, it is noted that management and senior technical staff are from both Chinese and local backgrounds.  This provides representation for the major stake holders and gives the company local industry project management and regulatory reporting experience.  
Exploration and mining companies operating in China rely on a set of prescriptive Chinese National Standards when exploring, developing and reporting resources projects.  Each commodity type and mineralization style has been allocated its own set of National Standards, and these differ relative to International Standards (e.g. those defined by CRIRSCO, 2013) in both their underlying principals and nomenclature.  The primary difference is that the Chinese National Standards are a prescriptive set of work programmes for exploration and “Resource / Reserve” estimation that must be followed in order to allow definition of a particular “Resource / Reserve” category, and to assess the “economic viability” of a project (Bucci et al, 2006).  In contrast, International Reporting Standards following the CRIRSCO template (e.g. JORC, CIM, SME, PERC and SAMREC) are on-prescriptive, and rely on the discretion of a Competent or Qualified Person (CP or QP) in regards to the implementation of appropriate exploration programmes and Resource / Reserve estimation parameters and procedures.  

Due to their requirement to adhere to the Chinese National Standards, Chinese companies and State Owned Enterprises (SOE) typically approach the exploration of minerals projects outside of China in a similar manner.  This is not a significant issue if the project has a history of public reporting, with an ongoing CP / QP taking responsibility for the work.  However, Chinese companies bringing a Chinese project on major international stock exchanges (ASX, TSX, JSE, LSE/AIM, HKEx or SGX), will need to meet the disclosure and reporting requirements of the relevant bourse.  This generally requires an assessment of whether the exploration and “Resource / Reserve” estimation work carried out under the Chinese National Standards is compliant for public reporting.  This requirement for reconciliation between standards is often difficult for many Chinese companies to rationalize, and can often be time-consuming and expensive.  For example, additional work is commonly needed, including drilling, Resource re-estimation, and technical studies to meet the differences between the Chinese and CRIRSCO defined feasibility studies. Despite this challenge, there is a trend for more Chinese companies to take their assets to international bourses, in particular exchanges in the Asian and Oceania regions (ASX, HKEx and to a lesser extent SGX). Although the reasons for listing may vary, this trend allows western markets to participate in the growth of the asset, and provides the Chinese investors a vehicle in which to vend earlier stage projects.  

Chinese direct investment in the minerals industry compliments both the local demand for minerals and the Central Governments “Going out” Policy. Investment in mineral projects is attractive for both Chinese mineral resource companies and those wishing to expand their production, as well as downstream customers looking to secure their supply chain through vertical integration.  Projects in more developed economies such as Australia, already a major supplier of key commodities, have already received a large share of this investment.  However, Chinese investment has moved to capitalise on early stage exploration, and this change in strategy brings challenges seated in both opportunity and risk. Risks for the Chinese Investor include the sectors notoriously low rate of discovery success, and challenges in adaptation to different exploration philosophy, practice, and public reporting offshore.  This is balanced by the opportunity to subscribe to projects at the earliest stage of the value creation pipeline.  Of course, the change also provides an opportunity for the western world to continue to participate in the growth of China, not only as a supplier of key commodities and as a recipient of investment capital, but also as an investor in the often well-funded exploration vehicles that China is bringing to foreign markets.

[1151 words]
Source: http://www.srk.com/en/library/ww-recent-publications

rrx6658

T2 1'33''
T3 1'23''
T4 1'21''
T5 1'18''
T6 1'20''

Mentioned several stocks of mining companies, whose prices are low. However CS analyst think they are undermined and give high expected price for them, maybe it's a good opportunity for long-term investors.

OB 5'30''
The main idea is that, chinese state-owned companies, especially steel companies have changed their strategies of acquirement, long time ago, they liked to invest in the developed companies of natural resource, Now, they want to find a balance between risk and profit, and begin to invest the developing companies, most of their mines have not been explored.

tanklance

Obstacle:06'10''
Chinese companies are investing in overseas mining projects not only to fulfill the increasing demands but also to echo the government's policy. The biggest difference between the investment nowadays and those several years ago is that Chinese investors are more likely to enter the project at early stage. This decision contains more risks as well as more benefits. At the sometime, Chinese companies have to solve the gap between the reporting regulation in China and the ones in the world.

cyndichiang

Time2 1'43''
Time3 1'49''
Junior mining has hard time raising money but waits for a rebounce of market

Time4 1'39''
Time5 1'17''
Time6 1'45''
Mining has underperformed for a long time and its shock market was unfavorable for investors who are paid little dividend.
Many mining companies focus on more profitable production and changes are that the demand will expand

Obstacle: 6'23''
Chinese "Going Out Policy" that government invests directly to companies will affect the mining businese
Difference between China's mineralizaiton standards and those of international
It is a  hard issue for chinese mining companies to reconclie the different reporting standards

古月小破烂

time 2 1’28
     junior miners are disappear, they can get capital or profit
time 3 1’30
    some mining firm move to other business
    some choose do nothing because lack of cash.
    the firm should do something to these problems
time 4 1’20
    metals and mining stock harm.
time 5 1’12
    example corp. rank high and the reason.
time 6 1’10

obstacle 6’00
    Chinese metals and mining market.
    going out policy influence Chinese investor.
    Chinese industry invest in foreign country.
    Chinese companies should balance the risk and challenge.
   

maple760

Time2        1         43         240        140         It's hard to junior miners to raise money and the article explains the reasons.
Time3        1         22         290        212         Because those minors can not get enough money, some of them pause their works or turn to other areas such as medical industry. People think those minors should keep active but minors believe less notice fewer works. Another thing hitting this area is that gold price is sinking.
Time4        1         15         232        186         Since 1990s the mining market is now the lowest point, and in the past 4 years this market continued steping down.
Time5        1         28         251        171         EGO, a corporation that owns businesses covering many metals and contries, is evaluated by analysist to be a good operator, resulting lower operation cost and better divid
Time6        1         29         280        189         Although the first company earned less in past 2 years, analysts see a value case in this company's iron deposit. The second company is also
Time7        4         39         1151        248         As a largest importer, China began investing in global mining industires by adopting Go Out policy. China moved to the early stage of development but facing some problems that are related with China's national standards include Estimation/Reserve rule.

kikoshiyuliu

SPEED
time 2
1’10’’
time 3
1’22’’
time 4
58’’
time 5
1’38’’
time 6
59’’

OBSTACLE (1151)
6’06’'
China is the largest consumer in the world(WTO).
China’s demand for resources has been the great support for the growth of th e world’s industry.
Foreign investment in China must obey the restrictions of Chinese government.
not only a consumer but also a key investor.

khalilzang

time 2'01
junior miners have lost attention from  investors and they feel difficult
to raise money than they used to do.
sth mentioned : a confernce hold in T , shrinking the size of the conference

confused word or phrases:booth

time 2'26
some junior miners transvert their businesses into other fields (sth called M)
However ,these companies should pay attention to two aspects:
one of them is the difficuty to raise money and the solution to this
problem is not to hold their capitals ,which may annoy investors ,but
to merse small companies and do something that costs less.
another is to focus on the price of the gold.

confused word or phrases:upbeat,hoard ,lob

The Cambridge House show has always been a gathering point for some of
the world’s most outspoken gold bugs, and they continued to pound the
drum for bullion on Thursday despite a bear market that has pushed it
down to around US$1,220 an ounce.



time 1'35
the top metal stocks have been hampered for years and the reason for it
is the slow growth in China and the decreasing prices of metals .

confused word or phrases:guided,purchases

Agnico Eagle Mines Ltd. (NYSE: AEM) completed the joint acquisition of Canada’s Osisko Mining and its Canadian Malartic
mine this Summer, which the company purchased together with Yamana Gold. The Osisko deal guided investors on both
companies in recent months, so any positive news on the performance of the Malartic mine could have an immediate effect
on valuation. The Credit Suisse team feels the sell-off after second-quarter results is way overdone, as potential at the
new mine joint-venture could be significant.

time 1'59
introductions of two mining companiesne of them explores mines in many countries and another is the most valuable
company to win its peers and cost less.
the proporse is to take examples to vertify that the turnover of mining sectors.

time 1'52
introductions of other two companies : one is growing by growing phases of platinum and another develops by investing in
energies .
conclusion: the basic demand for mental and mining companies is to expand and the overturn point is coming .



obstacles
Due to the national demand and the government policy ,China is the major economy of importing minerals and foreign
investments.
the deferences between national standards and international standards are chanllenges for national  companies . three factors are mentioned
China is undergoing  early stages of explorations ,which brings difficulties for national mining companies to make
discoveries and which also gives foreign companies opportunities to participate in the growth of China.