For Investors

Investment policy

Blackstone Resources invests in commodity and natural resources. It intends to extend and expand its investment holdings with the acquisition of further mining rights, concessions, licences and mining technologies. Blackstone Resources will grow its already existing holdings in mineral depoits by the acquisition of further licenses in Iron Ore, Molybdenum, Copper, Wolfram, Coal, Oil & Gas, Rare Earth Elements and Gold. As Blackstone Resources is seeking special opportunities in commodities assets in order to achieve for its shareholders an outperforming capital growth there are no geographical limits.

Fundamental Outlook

Despite the recent slow down and tremendous drop in commodity prices there will be no end of the super cycle on the demand of commodities and beside the bric states (Brasil, Russia, India) and “next 11 economies” such as Korea, Mexico, Indonesia, Turkey, Nigeria, Bangladesh, Pakistan, Iran, Philippines and Vietnam and therefore 4.5 billion people are aiming for an higher living standard, creating a tremendous demand on ressources.

With a strong but volatile outlook for the sector, the global mining and metal industry is focused on future growth through expanded production without losing sight of operational efficiency and cost optimization. The sector is also faced with the increased challenges of changing expectations in the maintenance of its social licence to operate skill shortages, effectively executing capital projects and meeting government revenue expectations.

Stable underyling economic fundamentals are supporting a more settled global economic outlook. A survey shows that respondents are optimistic about future company valuations and believe there to be more short-term market stability right now. This follows a period of extreme price volatility and rapid changes to the global economy that defined 2012 and persisted through 2014.

With these two factors aligned we expect to see investor confidence begin to return and consequently capital raising and allocation pressures ease. However, this is likely to be a gradual recovery and companies are reshaping their stategies and right-sizing in order to maximize returns in the near term.

China has high demands for the purchase of rawmaterials. The Company is presently negociating with many different enterprises which are looking for iron, coal, molybdenum and bitumen. Blackstone is positioned to satisfy these needs.

However the recent downturn on world economics and the crumbling of crude oil prices open new opportunities to acquire assets in particular in the oil- and gas sector in North America. In particular in the fracking industry. In fact, fracking is a lot more like mining than conventional oil production. Mining companies need to dig new holes, year after year, to extract reserves of copper or iron ore. In fracking, there is intense pressure to keep replacing the production you lost last year.

On average, the “all-in,” breakeven cost for U.S. hydraulic shale is $65 per barrel, according to a study by Rystad Energy and Morgan Stanley Commodity Research. So, with the current price at $48, the industry is under siege. To be sure, the frackers will continue to operate older wells so long as they generate revenues in excess of their variable costs. But the older wells—unlike those in the Middle East or the North Sea—produce only tiny quantities. To keep the boom going, the shale gang must keep doing what they’ve been doing to thrive; they need to drill many new wells. But Banks are not willing anylonger at a current barrelprice of 45 USD which is 33% below the breakeven barrel price of 65 USD to finance distressed companies, in particular in this economical situation which will offer to Blackstone Resources new opportunities to acquire cash flow producing companies.

Investment policy

Investment policy

Blackstone Resources invests in commodity and natural resources. It intends to extend and expand its investment holdings with the acquisition of further mining rights, concessions...

Activities

Activities

Blackstone Resources AG has started its activities and operations by engaging...

Management

Management

The board of directors, the management and advisory board of Blackstone Resources AG contains of specialists in Geology...