SMR Commentary MARCH 2016 Is it too early to call it a comeback? That's the question on every miner's mind as signs indicate that the long bear metals market might be nearing an end. Since the middle of January, mining stocks have seen a surprising uptick in value. Scotiabank analysts claim that even if the value indicators don't jump up in a straight line, the worst could be in the rearview mirror. The first week of March has seen a runup on nearly every type of metal, both base and precious. For iron miners, the good times can't come fast enough. The price of iron has dropped stupendously since peaking in 2011, losing nearly 75% of its total value since the peak of the commodities boom. It's meant a lot of belttightening for iron miners as well as countries that rely heavily on iron exports (most notably Australia). The Global Mining Index has risen sixteen percent since the beginning of 2016, with some fortunate companies like Teck Resources seeing their asking prices double or even triple in value. It may be too early to call it a comeback, but there's no doubt that plenty are calling it welcome news.
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