TSCI Street Pulse - March 8, 2010

The Prospectors and Developers Association of Canada (“PDAC”) annual mining conference is being held in Toronto this week (March 6-10). This is the world’s largest international mining show. Approximately 20,000 attendees are expected to visit the conference hall during its 3-1/2 day stint.

PDAC is enjoying its 77th birthday. It was founded in 1932 by a group of prospectors that shared a common purpose. Today, the goal of PDAC is to promote the mining exploration and development industry, both in Canda and globally.

The mining industry constitutes close to 5% of Canada’s GDP. But the importance of the industry to other industries is often overlooked. For instance, the mining industry contributes about 60% of railway revenue. As a corollary, a direct recipient is the country’s ports. Then there are all of the mining equipment and services companies: haulers, graders, drills, hard hats, minng lamps, and steel-toed boots, etc.

The mining sector represents the largest component of reports written by eResearch for the investment community. Many of the companies have no other following. We try to gain maximum exposure for these companies and, by so doing, we benefit by having our name circulating widely as well.

The “Materials” index has been a stellar performer since last PDAC, when doom and gloom overhung proceedings. What a difference a year makes. The index is up 46%, but there have been some spectacular moves. Perhaps none so much as Teck Resources, up 978% over the 12-month period. Other notables include Silvercorp Metals, up 780%, FNX Mining, up 380%, Sherritt International, up 363%, and Red Back Mining, up 179%.

Of the commodities, nickel is up 129%, copper 105%, zinc 91%, lead 89%, aluminum 72%, silver 30%, and gold 21%.

Let the dance continue!

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Bob Weir, B. Comm, B.Sc., CFA. - eResearch

Mr. Weir has 43 years of investment research and analytical experience in both the equity and fixed-income sectors, and in the commercial real estate industry. He was at Dominion Bond Rating Service (DBRS) from 1994 to 2001, latterly as Executive Vice-President responsible for supervising the firm’s 34 analysts and conducting the day-to-day management affairs of the company. He joined eResearch in 2004 and has been its President, CEO, and Managing Director, Research Services since May 2005.