Category Archives: View Pick

Tiefer Ölpreis – Segen oder Fluch?

Zürich, 7. Februar 2016/ViewPick Auszug Februar 2016

Dr. Felix Regli

BP oil Seit Mitte 2014 hat der Ölpreis (gemessen in USD) mehr als 70% seines Wertes eingebüsst, vom Höchstpreis Mitte 2008 gar um 78%. Gründe für den sehr tiefen Ölpreis sind primär dreierlei.

Erstens führt die weltweit träge Konjunktur zu einer geringen Nachfrage. Namentlich die konjunkturelle Lage in China und in diversen Schwellenländern ist schwach bis prekär. Auch in den westlichen Ländern kann die Wirtschaftslage nicht als sehr robust bezeichnet werden und es ist nur mit einem mässigen Wirtschaftswachstum zu rechnen.

Zweitens kämpfen die grossen Ölproduzenten (wie Saudi Arabien, Russland, Nigeria, Venezuela) wegen der tiefen Ölpreise mit hohen Budgetdefiziten und sind deshalb mehr oder weniger gezwungen so viel Öl wie möglich zu produzieren. Read more in Download PDF FR_ViewPickTiefer Ölpreis

ENTDECKTE RESSOURCEN

Newsletter ENTDECKTE RESSOURCEN Herbst/Winter 2014

Newsletter Saga

Wie immer. Die Faszination und die Leidenschaft für Technik, Wissenschaft, Kultur sowie für die sprudelnde Innovation reiten unsere Studienreisen auch in der Sommerzeit. In diesem Jahr (14. – 18. August) haben wir nach neuesten Erkenntnissen in der Umweltwissenschaft und der Erneuerbaren Energie in der Schweiz geforscht: Bio- Landwirtschaft, Agrar-Tourismus und Alpine Wasserkraft.

Resources & Roots. Neue und alte Ressourcen und ihre Quellen für wissbegierige Studenten und Dozenten aus der japanischen Universität Saga gaben ihre wertvollen nachhaltigen Lehrstücke preis. Der Event wurde dem Jubiläum „150 Jahre Schweiz- Japan Diplomatische Beziehungen“ gewidmet.

Mehr lesen Download PDF Newsletter RESOURCES & ROOTS JAPAN-SCHWEIZ 2014-.pdf

ViewPick 01/2015

Zurich, January 2, 2015

TAKEAWAYS

japan fächer Our activity produced in 2014 a good operating performance in all its strategic pillars. Resources & Roots is radically developing its relationship model in Switzerland, Finland and Canada and extending its offer to a large number of international partners. Our model, which combines the expertise of investor relationship, financial consulting and business ethics by the proximity of a proactive networking, is insuring a personalised service and an offer which is perfectly tailored to the need and expectations of clients in a complex economic environment.

The year 2014 ends with a bunch of doubts in front of a sustainable recovery of the economy world wide. Against the backdrop of a difficult pick-up in activity in developed countries and a slowdown in emerging countries, the oil price has fallen by more than 40 percent in six months, whereas it remained stubbornly around USD 100 per barrel for more than three years. The price decline, combined with accommodative monetary policies, could stimulate the activity of developed countries but is quite problematic for some producer countries.
A dramatical fall of the oil price, new geopolitical challenges, further extremely low bond prices and the uprising of China’s economy will define the speed of global markets recovery. Read more: Download_ViewPick Res-Roots 01_2015

Eleni Regli

Polymetal International

Company’s ViewPick, March 31, 2014

Falling metals’ prices endanger operations

Due to growing sales volume Polymetal posted a 55% half year on half year (hoh) increase in cost of sales which brought gross profit margin to 26% (below the second half year 2012 level). As a result operating profit in second half year (2H) 2013 came at USD 135 mn.

Lower hoh SG&A expenses and TCC helped to post improvement in EBITDA margin to 36.4%: In 2H 2013 Polymetal reduced TCC by 8% hoh to USD 721 per oz GE; the reduction came due to operational improvement at the Albazino-Amursk hub. SG&A expenses also declined and this partly favoured Polymetal to increase EBITDA margin to 36.4% in 2H 2013 from 33.1% in 1H 2013. RLU/ read more Download (PDF) Polymetal RU March 2014 en

Polymetal Conference call notes

GE production guidance keep on going strategy
Improvements in TCC will be visible in FY 2014, thanks to completion of ramp-up stages at the key investments projects (Amursk POX, Mayskoye)
Sharply focus on generation of positive FCF and dividends to continue in FY 2014
FY 2014 capex will decline yoy as major projects are completed; exploration capex will be maintained
M&A activities might be on the spotlight as Polymetal looks for possible acquisitions of high quality assets

Polymetal’s management confirmed GE production guidance of 1.3 Moz in FY 2014 and 1.5 Moz in FY 15e. Weakness in the metals’ prices will not affect the company’s production plans. Moreover, due to weakening RUB and completion of the ramp-up stage at Albazino-Amursk POX and Mayskoye Polymetal expects further reduction in TCC, which should positively affect profit margins.
The company does not expect any additional write-offs on impairments/revaluation as the write down made in FY 2013 already took into account weakness in the metals’ prices.
In FY 12014 estimated capex should be reduced to USD 250 mn from USD 319 mn in FY 2013. Polymetal will continue investing in exploration as it targets to extend life of the existing mines, and improve quality of the operations. In FY 2014 Polymetal plans for additions at Albazino-2; Kutyn and Svetloye.
The company’s focus lays on generation of positive FCF and payment of dividends. In FY 2014 Polymetal will continue to generate positive FCF. Net debt/EBITDA should lay within the rate of 1.75 mainly as a result of growing EBITDA (as the company expects to achieve higher cost efficiency).
Considering weak gold and silver prices Polymetal looks for possible acquisitions of high quality assets in FY 2014.
The outlook of Polymetal for FY 2014 promises positive shapes. The company believes in its ability to achieve higher cost efficiency in FY 2014. Despite gold price weakness Polymetal also tries to look for M&A in order to expand its high quality asset portfolio. And it is in the confortable position of having sufficient cash in order to perform M&As. Therefore it will not be a surprise when Polymetal will deliver better financial results in the first half of 2014 after poor results in 2013.

Viewpick: Romania Capital Market

Zurich/Bucharest, February 5

Stepping forward to an emerging economy

The European Commission recognised that Romania has made progress in reforming its judiciary and noted improving cooperation between local institutions, but still warned that the independence of courts remain an issue. Romania has many emerging market characteristics; it shares old unhealed wounds but steps on with the legacy of previous successes.

Despite all, the country re-focused the markets on the economic fundamentals. The demand for bonds surges. With political risk receding and bonds offering better yields than other markets in Central and Eastern Europe, Romania will stay in high demand.

The needed trigger for the local stock market is the switch of the actually status in MSCI rankings from frontier to emerging market. And for this liquidity beside transparency and much more commitment of all market players (government, stock exchange management, regulatory institutions and brokers) is required. Read more in (PDF) – Viewpick Romania Capital Market 2014.

Download (PDF)Viewpick Romania Capital Market 2014 RLU

3R Viewpick November / December

Dear Reader

Every now and then we need some good news. So in these remaining days of 2013, I’d like to share our newest insights.

The recovery of the world economy is expected to strengthen in 2014-2015. But this recovery would be a very slow one, as the global environment is still dominated by major problems that need to be overcome. On one hand, the long period of public and private deleveraging in developed countries is still far from over. On the other hand, emerging market economies are beginning a new step in their development process marked by structural challenges.

Scandinavia and Finland will keep focussing on extractive industries. Norwegian Sea may hold vast mineral and metal deposits. New research suggests that the seafloor between Jan Mayen and Svallbard likely holds great quantities of mineral and metallic resources like gold, silver and copper.

Commodities’ Market shapes new challenges for investors. Some of the economic conditions that prompted investors to buy mining shares over the past few years no longer exist. Many investors losing faith in gold as a preserver of wealth after inflation failed to accelerate and the Federal Reserve definitively signalled it will curb stimulus. Mine output may also drop. On the other riverside, investments in agricultural resources find new fields in Eastern Europe and Africa. Agriculture could be a catalyst for economic growth in Africa, but lack of funding for strategic investments risks is undermining progress. Emerging Market economies had proved resilient players in the global economy since 2008. But the situation has been recently disrupted by financial turbulence; not yet strong signals from developed economies while their levels of activity remains low. The global growth presents much more uncertainties than spots of confidence with slightly growing in 2014. The consequences of the exit from unconventional monetary policies will continue to be among the main sources of uncertainty. “Innovations for sustainability” is a real guideline for many companies we focus on.

I thank you for all of your support and excellent relationship during 2013, and I look forward to an even bigger 2014.

Best Season’s greetings,

Eleni Regli

Download (PDF) 3R Viewpick November / December 2013

3R Viewpick September / October 2013

Russian economy is in need of confidence and structural reforms are still on stand by, while Eastern Europe’s markets are recovering. Each investor has in mind a setting of values which his assets can benefit from. Choices and the quality and content of every anticipated jugements therefore matter: talking about sustainable investments. After spending research time in Finland, especially in the Barents Region, the competition for new business in the Arctic will be arbitrated by not to be neglected sustainability criteria.
We confront the same question very often. Is Ethical investment a new shape of the modern investment world? Engaging sustainable investments to good return work is not recent but has a long history, which began with Charity Funds. John Calvin in Geneva was one of the best experts of his time. It is high time to talk about charity and sustainable investments.
When debris violins pull at heartstrings it must be somewhere in Japan, and by the trees washed away by the tsunami, it is about the forthcoming of a “cradle to cradle”-principle.
Enjoy the reading of our latest viewpick.

Best autumn greetings,
Eleni Regli

Download (PDF) 3R Viewpick September / October 2013

3R Viewpick July / August 2013

Emerging Market economies have proved as resilient players in the global economy since 2008. But the situation has recently been disrupted by financial turbulence; strong signals from developed economies are yet to be seen while their levels of activity remain low. The global growth presents much more uncertainties than spots of confidence with slightly growing in 2014. The consequences of the exit from unconventional monetary policies will continue to be among the main sources of uncertainty.
Finland brings innovation and skills to the global market. Responsible Resources & Roots Engagement emphasises research and advisory in Arctic Investments.

Best summer greetings,
Eleni Regli

Download (PDF) 3R Viewpick July /August 2013

3R Viewpick May / June 2013

The large diversity of technologies, companies and entrepreneurs at work in the world of sustainable business means not two investors are likely to share the same business and life philosophy and values. Still, our experience has helped us identify several general themes which may be useful to consider.
In our networking in Switzerland, Finland, Canada, Tunisia, Japan, many market players seek to achieve balances and sustainable use of the world’s natural resources, and the need for new sources of energy, materials and environmental harmless technologies becomes manifest.
I do invite you with the newest ViewPick May/June to a summer reading about Roffla’s Gorge in the Swiss Alps and further insight of our research and findings like new networking with Japanese sustainability.
If you like to learn from old stories and science fiction, you might find this newsletter interesting. Roffla, Temmentech, Planetary Resources make possible to anyone to have a taste of future.

Best summer regards,
Eleni Regli

Download (PDF) 3R Viewpick May / June 2013

3R Viewpick March / April 2013

Responsible Resources & Roots Engagement Switzerland promotes Swiss CSR expertise around a wide market compass
Spring blossoms, and our 3R Engagement eNewsletter wishes sharing the experiences of Resources & Roots in the last weeks and the activities that are still to come.
Business networking is a socio-economic activity that enables like-minded business players to recognise, create or act upon business opportunities. Being connected to peers who can make a difference in business heightens a professional’s visibility within his or her group of action. 3R Engagement is striving to foster industry functions, networking groups, conventions and other gatherings, and give business partners the tools they need to build new professional relationships and generate business opportunities. We do consider that networking has already taken on a brand new meaning.
Finland networking develops new business opportunities. The Arctic Zone opens new environmental questions related to Extraction Industries. Finland proposes solutions. Canada’s track is enriching with new skills in the CSR Mining and Recycling Technology. Gender in Mining Industry becomes an issue to look for attentively.
Our engagement in Africa is growing and turns to an exciting collaboration in sustainable CSR Training and Assistance for sustainable reporting issues and ethical investments. Let us take a look at the latest news, while we explore sustainable investment opportunities. Bonne lecture!

Download (PDF) 3R Viewpick 2013 March/April