News

April 24, 2017

Financial Analysis of Oil and Gas Market – April 2017

With prices leveling off and a continued resurgence in American production, oil has been having a tough few days. Oil stockpiles are at historic highs and price predicting analysts are all over the map. Bubble size represents market cap FIGURE 1: PERFORMANCE OF OIL AND GAS COMPANIES Description: Figure 1 highlights the performance of the oil and gas industry for the month of April 2017 (x-axis) and the performance of the 11 months prior to April 2017. Analysts’ predictions range from a 20% decrease from current levels to about $42 […]
April 24, 2017

Financial Analysis of Gold Market – April 2017

The price of gold has risen ~12 percent year-to-date, and it looks like the upward trend will continue. Sentiment has turned up in the gold market the last few weeks. Data from the top gold consuming country – India – shows there may indeed be cause for optimism among gold buyers. Bubble size represents market cap FIGURE 1: PERFORMANCE OF GOLD MINERS Description: Figure 1 highlights the performance of the gold mining industry for the month of April 2017 (x-axis) and the performance of the 11 months prior to April […]
March 8, 2017

Financial Analysis of Oil and Gas Market – February 2017

Despite the near record increase in U.S. oil inventories last week – an increase of 13.8 million barrels – oil prices traded up in February. The abnormal crude stock increase took inventories close to 80-year record levels at 508 million barrels, and is evidence that should worry oil bulls. However, the oil markets were not deterred. In fact, that has been a defining characteristic of the market in recent weeks – optimism even in the face of some pretty worrying signals about the trajectory of the market. Bubble size represents […]
March 8, 2017

Financial Analysis of Gold Market – February 2017

Gold has been on a bull run since it bottomed at 1,125 last December, one day after the Fed Meeting. Gold made its first run from 1,125 to 1,220, up 95 dollars, then pulled back and made its local bottom at 1,180. The run resumed then and topped at 1,247 on Feb 8th. It closed at 1247.60 on March 1, 2017. Bubble size represents market cap FIGURE 1: PERFORMANCE OF GOLD MINERS Description: Figure 1 highlights the performance of the gold mining industry for the month of February 2017 (x-axis) […]
March 8, 2017

Digital transformation is ultimately about culture

If you as a talented executive find your head spinning with hundreds of options to digitize your operations, here is a pointer. A decade ago, popularized technology innovation migrated from redesigning salt shakers and door handles to tackling the industrial world. Along the way, autonomous vehicles, knowledge hubs and collaboration centers entered our work space and occupied much of our thinking time. That was a decade ago. On the other side of this story is the future made up of artificial intelligence, machine learning with real time information piped from […]
January 31, 2017

Strategy and Digital Transformation

We develop strategies with some objectives in mind: Digital transformation is about optimizing the performance of the company. Often the organization begins to sense panic, that they have fallen behind in their business execution constructs and now need a specific intervention so that the organization can catch-up with current digital developments and hopefully jump the learning curve on a few ideas that would give them a competitive advantage. It’s true that in the wonderful world of technology advances, many companies have found new fortunes by changing their business model – […]
January 31, 2017

Financial Analysis of Oil and Gas Market – January 2017

It will not surprise any investor in oil and gas and related businesses that theirs is a cyclical business. Prices run up when supplies fall short of demand, hover around peak for a few years, then tumble as new supply sources are developed and demand growth slows down. 2016 has not been an easy ride for anyone at any level in the industry. Last year would have been an epic fail had it not been for the Saudis cutting 1.2m bpd, Iraq reducing output by nearly 20%, and Russia leading […]
January 31, 2017

Financial Analysis of Gold Market – January 2017

Gold managed to rebound slightly in 2016, rising 8% and making back a bit of the lost ground that it has suffered in previous years. A new U.S. president has entered the Oval Office this year. His policies, while embraced by Wall Street, are untested largely. Trump’s first few days in office and he has already signed a bunch of executive orders making good on some of his campaign promises. Suffice it to say geopolitical tensions are fraught at this point and this could be good news for gold. Month-to-date […]
January 31, 2017

2017 MARKET UPDATE – January

2017 started with improved valuations for commodity producers as investors realized they neglected this sector too much. The miners have not had such good market performance since 2008 and the oil & gas sector looks equally good. But behind the scenes, the deliberate efforts to improve margins remain the critical play. There is no fundamental reason to believe that price increases will bring external relief. We believe that following structural investments to impact unit costs, the best sustainable management activity this year will be to continue transforming the sector towards […]
December 16, 2016

2016 In Review – Our Insights

2016 is most certainly a year of note. Remember, we started the year with a mining index that was at a 12-year low. Since then, the FTSE all-share mining index has doubled in value and is among the best performing sectors in Europe. From the crises management and debt reduction pledges of all the large players, we now have Anglo American and Glencore’s stock prices up 310 per cent and 220 percent, respectively. The near drowning weight of debt at the beginning of the year gave way to companies not having […]