Resource World Magazine

J U N E / J U L Y 2 0 1 7 www.resourceworld.com 29 for metals products. When diminishing new supply is met by increasing demand factors, basic economics suggest rising future prices and I believe a solid case can be made for that eventuality. n This material is taken from sources believed to be reliable and is provided for information only. Any investment decision should be made only after prior consultation with investment profession- als. Leonard Melman is a financial and political writer who focuses on issues relat- ing to the resource sector. Mr. Melman lives in Nanoose Bay, British Columbia, Canada and can be reached at lmelman@ shaw.ca At the Market by Rodney Blake M any of us here in Canada enjoy watching ice hockey. In addition to being an exciting game, it is the only one that I know that is divided into three periods. At the end of the first and second periods, commentators analyze the game and give some insight as to how the players and teams are perform- ing and what they need to do to better their performance. Now, with about one-third of 2017 behind us, and in the context of Canada's favourite pastime – I give you the resource markets' first period summary. Let's start with the players as see how they've done as of the end of April. • Gold Bullion – up by 10% to US $1,269/ oz. • Copper & Zinc – holding their own being up by 3.5% and 2.1% respectively to US $2.61 and $1.19/lb. • Crude Oil – down by over 8% to US $49.15/bbl • Natural Gas – down over 12% to US $3.27/mmbtu • Uranium – up by some 11.5% to US $22.75/lb but, following a New Year surge higher, it has remained flat to down for most of this year as reactor openings seem to be few and far between and there seems to be a never ending supply of uranium that is capping the market. Now let's look at the TSX Venture Exchange. As of April 30 the Venture Exchange, the main platform for resource issues, was ahead on the year by only about 4.1% to 807 – almost flat. Historically, the first few months of the year are the best for the Venture Exchange as in 2016 when it advanced by over 28% in the same time period. Obviously, this year's team doesn't seem to have the same legs or enthusi- asm as it did early in the same season a year ago. What needs to happen to keep moving the resource team or exchange ahead and avoid the traditional resource sector mid- summer downturn? Despite new interest in lithium and marijuana issues, gold stocks still make up the majority of the Venture Exchange. Gold and precious metals, the heavy weights of the resource sector, need to avoid their usual seasonal summer down- turn and instead move higher to help pull the exchange ahead. Base metals such as copper and zinc need to keep advancing and the petro- leum sector needs to reverse its downturn or it will be a drag on the exchange. The price of uranium needs to show some sign of tightening, either through new reactor construction or a drop in surplus stockpiles. Overall, in order for the Venture to have as good a year, all of the resources must be seen to be advancing in unison or one must pull ahead of the pack to give inves- tors a renewed need to be in that sector. Should either of these scenarios play out, the Venture Exchange may keep its inves- tors' attention and avoid its traditional summer doldrums. OK team – who's up for the second period? 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 con- tained 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 sub- sidiaries, 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 develop- ments 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. He can be reached at 604-643-7567 or rod.blake@canaccord. com First period summary

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