A Wall Street Transcript Interview with Deutsche Bank Award Winning Pan-European Metals and Mining Research Analyst Rob Clifford: Investment Implications For Nickel, Aluminum and Zinc, All Trading Below Cost of Production

Wall Street Transcript

67 WALL STREET, New York - May 5, 2014 - The Wall Street Transcript has just published its Metals & Mining Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Mining Safety and Environmental Concerns - Global Iron Ore Production - Emerging Market Infrastructure Construction - Chinese Demand for Industrial Metals - Zinc Supply Deficit - Demand Growth in Zinc - Accelerated Grid Spending in China - Copper Demand in China

Companies include: BHP Billiton Ltd. (BHP) and many others.

In the following excerpt from the Metals & Mining Report, an expert analyst discusses the outlook for the sector for investors:

TWST: If I'm a metal and mining investor, which other metals should I be focused on and why? What are some of the macro factors creating opportunity around those metals?

Mr. Clifford: Well, it depends a lot on the investor's time horizon. So first and foremost, every investor needs to think about their horizons. The metals that are particularly bottomed out at the moment, such as zinc, aluminum and nickel, actually have very good medium-term outlooks. Also, these are commodities that are trading below the cost of production, in case of nickel and aluminum, or have capacity reductions coming due to mine depletion in the case of zinc. So these three metals in particular over the next two- to three-year window look attractive. And they also tend to be later-cycle metals.

So the emerging economy growth, such as China, should continue to show increasing demand for these commodities - so on a medium-term view those are the metals we would look at. On the shorter-term view, it is as I've said, iron ore, which we think has been oversold. The iron ore equities have been oversold based on prices that we don't think will be achieved. And finally onto the precious metal space, we're actually very positive on the outlook for the PGM, the platinum group metals, but certainly choice of equity exposure needs to be a key consideration there.

TWST: Can you talk a bit about the big miners' efforts to cut costs? Which do you think have done a particularly good job there, and what are the implications for the group of those cost-cutting measures?

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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