In the midst of the global financial crisis, the US mining industry and the energy resource sector continues to outperform the market and remains as an investment hotspot for many institutional investors from Asia.
Apart from strong demand for commodities in China and other still growing economies like India, the Chinese government also plays an important role in encouraging its business and nationals to invest in overseas market.
Senior economist Yao Tszyin suggests that the Chinese government is actively seeking reforms to its overseas investment policy. The reason is, the US currency reserve in China has already reached to a level that creates an upward pressure on Yuen that is too large for the nation to bear, and it is definitely hurting the country core business - exporting. Therefore, to stay competitive in the global economy, the Chinese must find a way to offload these excessive US currency reserve overseas.
This report aims to give a brief snap shot of the investment options in US (listed companies in NYSE) for the institutional & retail investors in Asia who are looking to invest in the US market.
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Mining Industry
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Agnico-Eagle Mines Limited (NYSE:AEM) Primary Production: Gold
Company Summary: Agnico-Eagle Mines Limited (NYSE:AEM) is an international growth company focus on gold, with operations in Canada and Finland and advanced stage projects and opportunities in Canada, Mexico and the USA. Agnico-Eagle 's LaRonde mine is the site of Canada's largest operating gold mine in terms of reserves, and it provide a strong foundation for the company in term of International expansion. The company is expecting gold production increase by fivefold over 2007 to 2010. The company has also got a strong financial profile, the 2009 capital expenditure are fully funded, without considering internal cash flow.
IR Contact: David L. Smith
Phone: +1-416-947-1212
Email: info@agnico-eagle.com
Website: http://www.agnico-eagle.com
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Anglo Gold Ashanti (NYSE:AU) Primary Production: Gold, Uranium, Silver
Company Summary: Anglo Gold Ashanti (NYSE:AU) is a leading global producer of gold and uranium and has a varied portfolio of surface, open-pit and underground operations in 10 countries (Argentina, Australia, Brazil, Ghana, the Republic of Guinea, Mali, Namibia, South Africa, Tanzania and the USA). Together with its extensive greenfields and brownfields exploration portfolio the company has a presence on every continent.
AngloGold Ashanti's strategy is to focus on a core controlled asset base, while also maintaining and strengthening our balance sheet, in order to become the number one gold producer by value. We seek to realise the value in our assets in order to achieve the best returns and have achieved this through the cutting of our hedge book, and realignment of our asset base. The hedge book was reduced by 47% during 2008 and seven sale or purchase transactions completed in 2008 up to Feb 2009. The most significant was Boddington mine in Australia, in which AngloGold Ashanti's 33.33% joint venture interest was sold to Newmont for up to approximately $1.1bn.
Core to the strategy and its achievement is our commitment to safety. Safety is our number one value, and the guiding force in all our actions and behaviour. The implementation of our 'Safety is our first value' campaign, gas resulted in a 57% decrease in the group fatality rate in 2008 over 2007.
IR Contact: Sicelo Ntuli
Phone: +27-11-637-6339
Fax: + 27-11-637-6792
Email: sntuli@anglogoldashanti.com
Website: www.anglogoldashanti.com
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BHP Billiton (ASX:BHP) (NYSE:BHP) Primary Production: Aluminium, Energy Coal, Metallurgical Coal, Copper, Manganese, Iron Ore, Uranium, Nickel, Silver, Titanium, Oil, Gas, Liquefied Natural Gas, Diamond.
Company Summary: BHP Billiton (ASX:BHP) (NYSE:BHP) distinguished from other resource companies by the combination of the quality of our assets; our deep inventory of growth projects; our customer-focussed marketing; our diversification across countries, commodities, and markets; and our petroleum business. The central tenet of the BHP Billiton business model is that its diversified portfolio of high quality assets provides stable cash flows and an enhanced capacity to drive growth. In FY2008, we generated revenue of US$59.5 billion, attributable profit (excluding exceptional items) of US$15.4 billion and net operating cash flow of US$18.2 billion.
BHP Billiton was created through the Dual Listed Companies (DLC) merger of BHP Limited (now BHP Billiton Limited) and Billiton Plc (now BHP Billiton Plc), which was concluded on 29 June 2001. BHP Billiton Limited and BHP Billiton Plc continue to exist as separate companies, but operate on a combined basis as BHP Billiton. The headquarters of BHP Billiton Limited, and the global headquarters of the combined BHP Billiton Group, are located in Melbourne, Australia. BHP Billiton Plc is located in London, United Kingdom.
IR Contact: Leng Lau
Phone: +61-3-9609-4202
Email: Leng.Y.Lau@bhpbilliton.com
Website: http://www.bhp.com
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Buenaventura (NYSE:BVN) Primary Production: Gold, Silver
Company Summary: Buenaventura (NYSE:BVN) is Peru's largest publicly-traded precious metals company and a major holder of mining rights in Peru. The Company is engaged in the mining, processing, development and exploration of gold, silver and other metals via wholly-owned mines, as well as through its participation in joint exploration projects. Buenaventura currently operates seven mines in Peru, with two more mine sites expected to begin production in (La Zanja, CAPEX US$60 million) 2009 and (Tantahuatay CAPEX: US$55.6 million) 2010. The La Zanja project is expected to produce 100K oz of gold per year. The Tantahuatay project is expected to produce 100k oz of gold per year as well.
IR Contact: Daniel Dominguez
Phone: +511-419-2591
Email: ddominguez@buenaventura.com.pe
Website: http://www.buenaventura.com.pe
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Harmony Gold Mining Company Limited (NYSE:HMY) (JNB:HAR) (LON:HRM) (EPA:HG) (ETR:HAM1) Primary Production: Gold
Company Summary: In FY08, Harmony Gold Mining Company Limited (NYSE:HMY) (JNB:HAR) (LON:HRM) (EPA:HG) (ETR:HAM1) produced 1.55 million ounces of gold, making it one of the world's largest gold producers. The group's operations are located primarily on the Witwatersrand Basin in South Africa, encompassing 10 underground operations, an open-pit mine and surface operations in four provinces - Gauteng, North West, Mpumalanga and the Free State.
In FY08, Harmony announced the formation of Rand Uranium (Pty) Ltd (Rand Uranium), a focused uranium company that will turn to account the substantial uranium-rich material held by the group at its Randfontein operations.
Also in FY08, the group announced the Morobe Mining Joint Venture with Newcrest Mining Limited (ASX:NCM) of Australia, in which Newcrest will earn up to 50% of Harmony's projects in Papua New Guinea (PNG). Harmony's exploration portfolio is largely focused on highly prospective areas in PNG, including the Wafi-Golpu project, although renewed exploration activity has begun in South Africa.
IR Contact: Esha Brijmohan
Phone: +2711-411-2314
Email: esha@harmony.co.za
Website: www.harmony.co.za
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Silver Wheaton Corp (NYSE:SLW) Primary Production: Silver
Company Summary: Silver Wheaton Corp (NYSE:SLW) is the largest public mining company with 100% of its operating revenue from silver production. Silver Wheaton expects, based upon its current contracts, to have annual silver sales of 15 to 17 million ounces in 2009, increasing to approximately 30 million ounces in 2013, without any capital expenditures being required to generate that growth. The Company has long term contracts to purchase all or a portion of the silver production from mines in Mexico, Sweden, Peru, Greece and the United States, at a low fixed cost. Silver Wheaton's unique and simple business model is designed to create long term shareholder value, providing significant leverage to increases in the silver price while mitigating the downside risks associated with traditional mining companies. Silver Wheaton is unhedged and well positioned for further growth.
IR Contact: Brad Kopp
Phone: +1-604-696-3044
Email: info@silverwheaton.com
Website: www.silverwheaton.com
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Stillwater Mining (NYSE:SWC) Primary Production: Palladium, Platinum
Company Summary: Stillwater Mining (NYSE:SWC), incorporated in 1992, is engaged in the development, extraction, processing, smelting, refining, and marketing of palladium, platinum and associated metals from a geological formation in southern Montana known as the J-M Reef. This is the only know significant source of platinum group metals in the United States and one of the significant resources outside Russia and South Africa.
IR Contact: IR Department
Phone: +1-406-373-8700
Email: investor-relations@stillwatermining.com
Website: http://www.stillwatermining.com
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Vale (NYSE:RIO) Primary Production: Iron Ore, Pellets, Manganese Ore, Ferro-Alloys, Nickel, Copper, Alumina, Aluminium, Metallurgical Coal, Thermal Coal, Cobalt, Platinum, Palladium, Gold, Silver, Potash, Kaolin.
Company Summary: Vale (NYSE:RIO) invested a record US$10.169 billion in 2008, excluding acquisitions. This figure represents a 33% increase over the US$7.625 billion spent in 2007. Investment in organic growth was US$ 7.497 billion, out of which US$ 6.454 billion was dedicated to project execution and US$ 1.044 billion to research and development (R&D). US$ 2.672 billion accounted for stay-in-business capex. Corporate social responsibility is a key strategic commitment and our investments in 2008 amounted to US$ 909 million, being US$ 231 million in social projects and US$ 678 million in environmental protection. In the last quarter of 2008, investments totalled US$ 3.444 billion, with US$ 2.372 billion allocated to projects and R&D and US$ 1.072 billion to the maintenance of our operations.
IR Contact: IR Department
Phone: +55-21-3814-4540
Email: rio@vale.com
Website: http://www.vale.com
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Yamana (NYSE:AUY) Primary Production: Gold
Company Summary: Yamana Gold Inc. (NYSE:AUY) is a Canadian-based gold producer with significant gold production, gold development stage properties, exploration properties, and land positions in Brazil, Argentina, Chile, Mexico and Central America. We expect to increase production by approximately 35% in 2009 to more than 1.35 million gold equivalent ounces from mines already in production, and our growth is 100% precious metals. With seven operating mines, two mines in commissioning and four advanced development opportunities, Yamana has a unique offering of growth, sustainability and value. We have grown ten-fold in terms of production since we began in 2003 and we intend to double that production into 2012.
IR Contact: Jodi Peake
Phone: +1-416-815-0220
Email: investor@yamana.com
Website: http://www.yamana.com
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Energy Resources (Coal Mining)
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Arch Coal (NYSE:ACI) Primary Production: Coal Mining
Company Summary: Arch Coal (NYSE:ACI) is one of the largest U.S. coal producers, with revenues of $3.0 billion (USD) in 2008. Through its national network of 11 mining complexes, Arch supplies 130 million short tons of cleaner-burning, low-sulphur coal each year to national and international power producers and steel manufacturers in 21 countries.
IR Contact: Deck Slone or Jennifer Beatty
Phone: +1-314-994-2700
Website: www.archcoal.com
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Patriot Coal Corporation (NYSE:PCX) Primary Production: Coal mining
Company Summary: Patriot Coal Corporation (NYSE:PCX) is the third largest producer and marketer of coal in the eastern United States, with 15 mining complexes in Appalachia and the Illinois Basin. The Company ships to domestic and international electric utilities, industrial users and metallurgical coal customers, and controls approximately 1.9 billion tons of proven and probable coal reserves. The Company's common stock trades on the New York Stock Exchange under the symbol PCX.
IR Contact: Janine Orf
Phone: +1-314-275-3680
Email: jorf@patriotcoal.com
Website: www.patriotcoal.com
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Energy Resources (Oil and Natural Gas)
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Chesapeake Energy Corporation (NYSE:CHK) Primary Production: Oil and Gas Producer
Company Summary: Chesapeake Energy Corporation (NYSE:CHK) is the number one independent producer of natural gas in the nation and the most active driller of new wells in the U.S.
The company owns interests in approximately 41,200 producing oil and gas wells that are currently producing approximately 2.3 bcfe per day, 92% of which production is natural gas. As of December 31, 2008, Chesapeake had proved reserves of 12.1 tcfe. Headquartered in Oklahoma City, the company's strategy is focused on discovering, acquiring and developing conventional and unconventional natural gas reserves onshore in the U.S., primarily in the "Big 4" natural gas shale plays: the Barnett Shale of north-central Texas, the Haynesville Shale of East Texas and northwestern Louisiana, the Fayetteville Shale of central Arkansas and the Marcellus Shale of the northern Appalachian Basin. Chesapeake has substantial operations in various other plays, both conventional and unconventional in the Mid-Continent, Appalachian Basin, Permian Basin, Delaware Basin, South Texas, Texas Gulf Coast and Ark-La-Tex regions of the U.S.
IR Contact: Jeff Mobley
Phone: +1-405-935-4849
Email: jeff.mobley@chk.com
Website: http://www.chk.com
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Denbury Resources Inc (NYSE:DNR) Primary Production: Oil and Gas Producer
Company Summary: Denbury Resources Inc. (NYSE: DNR) is a growing independent oil and gas company. The Company is the largest oil and natural gas operator in Mississippi, owns the largest reserves of CO2 used for tertiary oil recovery east of the Mississippi River, and holds significant operating acreage in the Barnett Shale play near Fort Worth, Texas, onshore Louisiana and Alabama, and properties in Southeast Texas. The Company's goal is to increase the value of acquired properties through a combination of exploitation, drilling and proven engineering extraction practices, with its most significant emphasis relating to tertiary recovery operations. Because of Denbury's unique ability to sequester Carbon Dioxide (CO2) while increasing oil production from previously depleted oil fields, we not only improve the local economies in which we operate, but can also help reduce our nation's need for imported oil.
IR Contact: Phil Rykhoek
Phone: +1-972-673-2050
Email: phil.rykhoek@denbury.com
Website: http://www.denbury.com
Related Companies
Harmony Gold Mining Company Limited
Compania de Minas Buenaventura SA
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