Issue link: http://resourceworld.uberflip.com/i/783264
F E B R U A R Y / M A R C H 2 0 1 7 www.resourceworld.com 27 At the Market by Rodney Blake Go Figure WHEN STARTING a New Year it's interest- ing to look back to see how the aspirations of the previous year turned out. To recap – as 2016 began – most resource stocks were trading at or near multi-year lows and the TSX Venture Exchange had fallen to a nine-year low of 466. Most mineral prices were at similar multi-year lows with gold under US $1,100/oz, copper struggling to hold US $2/lb and crude oil barely above US $30 a barrel. Then things began to get optimistic as resource prices started to improve. Small financings were completed and companies got their books in order. But the real catalyst came not from a mainstream mineral or a new discovery but from a senior miner producing a min - eral seldom discussed – Teck Resources [TECK.B-TSX] and metallurgical coal. Metallurgical, or steelmaking coal, was thought to be in surplus until China sud- denly curtailed production early last year. Teck, Canada's largest integrated mining company and one of the world's largest producers of metallurgical coal, suddenly found itself in demand. Teck's stock price that began the year at a seven-year low under $5 started to move upward. As attention towards coal intensified Teck's share price rose by almost 800% over the course of the year to a three-year high of $35. Who in early 2016 would have bet that metallurgical coal would lead resource markets higher? Not gold, not copper, not crude oil – but metallurgical coal. This is not to say that other resources and resource stocks didn't fare well. Most did very well as gold rose by 24% to US $1,360, copper gained 35% to US $2.70, and crude oil soared up by 80% to US $54, leaving the Venture Exchange up some 79% to 833. Only uranium and uranium company shares seemed to lag as the price of U 3 O 8 remained below US $20/lb for most of the year. Now in 2017, some resource prices are off their highs but still well ahead of January 2016. Teck is still trading above $30 and there is a sense the resource bull market will continue. What commod - ity or company will lead this resource market? Will it once again be a main- stream mineral such as gold, copper, zinc or crude oil, or will it come as a complete surprise as metallurgical coal did last year? Rest assured, the resource bull market is intact and something will lead it higher. Metallurgical coal did – go figure. 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 providing it does Rodney Blake, Canaccord Genuity Corp, or its subsid - iaries, or affiliated companies, 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 holdings of its respective directors, officers and employees and their associations, from time to time may buy or sell any securities mentioned herein. The views expressed are those of the author and not necessarily those of Canaccord Genuity Corp. He can be reached at 604-643- 7567 or rod.blake@canaccord.com