Metalheads - I need advice/help
Guys,
I have observed the Canadian Dollar (CAD) gain 15% on the USD in a very short time. I have also noticed the Mexican Peso (MXP) follow the USD decline nearly lock step.
If I invest in Canadian listed companies, operating mines in Mexico, am I not getting a triple benefit?
1. I am insulated from further USD weakness by being invested in the Canadian market.
2. The Canadian miner has lower operating costs in Mexico than he would operating in Canada or Europe. (This number could be big)
3. I will not only be protected from USD weakness but also recognize appreciation of the CAD.
One thing I don't understand is what happens to Canadian debt. If I was a Canadian company that took out a loan a few years ago, won't I have a lot more to pay back now(in real terms)?
Don Coxe is calling for CAD to go to $1.10 USD.
I am working on a list of Canadian companies that I think will do well operating mines in Mexico. I like SAM.V, EXN.V, SPM.TO as a start.
Anyone else thinking about this? Just think of how many Canadians will be on the beaches of Mexico this winter EY!
Kipp
