Resource World Magazine

j u n e / j u l y 2 0 1 4 www.resourceworld.com 27 at t h e m a r k e t R o d n e y B l a k e INTERNATIONAL BROTHERHOOD of ELECTRICAL WORKERS Local 993 Northern British Columbia and Yukon We are a progressive Labour Union in the Construction Industry with: • 100 Plus years on the North Coast of B.C. • 750 Electricians and Apprentices in Local with 3000 in Sister Locals in B.C. • Part of District One Canada with35,000 Electricians Canada Wide. • Commitment to Equity Hiring to Engage Local Peoples • Efficient - Competitive Project Labour Contracts Contact the Business Manager, Glen Hilton 250-376-8755 Email: bm@ibew993.org S ome of you, or perhaps most of you, probably get a major pain in the you- know-what when you look at the state of your portfolio of resource stocks these days. And just to add to the pain, let's change these days to these years. That's right, years! It's been three years since the resource markets peaked. That's a long time to look at a list of companies that have been in a bear market and really have gone nowhere since the spring of 2011. This in a sector that by its very nature to explore, discover and produce, should be very volatile on the upside as well as to the downside as discoveries are made or missed. But it seems today that even the compa- nies making discoveries are quickly being discounted by very disgruntled investors, many of whom have lost their patience and are selling to move on to other things. To make matters worse, you've had to endure three years of market observers, both professional and otherwise, tell- ing you that the next bull market is just around the corner, or the next season or the next year. I myself have to admit that I've let my enthusiasm for the sector get in the way of my better judgement of the real state of the resource market. So just what is the state of the resource market today? In a word – boring. Yes, boring. Save for the oil & natural gas sector that has been rising nicely and is getting its fair share of attention, the rest of the resource market has gone nowhere for the past three years. Just look at a chart of gold bullion, silver, copper, uranium, or even the TSX Venture Exchange and most of the stocks that make up the index. They all look somewhat the same. After a big plunge from their highs in 2011 they have all pretty much been going sideways. Some, including myself, would say we are build- ing a resource market base from which the market will eventually drive higher. The big question investors are posing is: when? The when is anybody's best guess, but for me, I'm looking for the end of summer for this resource market to regain some upside momentum. As I write, the usual first quarter rally is clearly over and those over priced positions have to be unwound which, barring an unsuspected rally, will take a few months to accomplish. Plus, the price of most metals, tend to slump in the summer and regain their uptrend in late summer/early fall. Resource investors have to be patient, and in this case, very patient. It's been a long three years, but that most assuredly means the next big rally will be sooner rather than later. The rally, when it comes, could be as sudden and sharp as the cur- rent bear – after all, we know that mining is cyclical. It's very hard to time the mar- ket and jump in at the start of a rally. You must be invested now and be patient. It's a patience game. n Rodney Blake is an Investment Advisors with Canaccord Genuity Wealth Management, a division of Canaccord Genuity Corp, Member-Canadian Investor Protection Fund. The information contained in this article is drawn from sources believed to be reliable, but the accuracy and completeness of the information is not guaranteed, nor in provid- ing it does Rodney Blake, Canaccord Genuity Corp, or its subsidiaries, or affiliated compa- nies, assume any liability. This information is current as of the date appearing in this article, we do not assume any obligation to update the information or advise on further developments relating to these securities. This article should not be considered personal investment advice or a solicitation to buy or sell securities. Canaccord Genuity and hold- ings of its respective directors, officers and employees and their associations, from time to time may buy or sell any securities men- tioned herein. The views expressed are those of the author and not necessarily those of Canaccord Genuity Corp. Rodney Blake can be reached at 604-643-7567 or rod.blake@ canaccord.com It's a patience game

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