Not a V-Shape Recovery ? A V-shape recovery will require the US, Japan and German production to grow at a very fast rate in the next few months. Even the recovery phase of the US Factory Orders during the early 2000 recession was not really a V-shape recovery. Thus, while we believe that global economy has bottomed out, it is not likely to experience a V-shape recovery. Recovery is likely to be slow and gradual with many pitfalls along the way.

Coal mining ? Coal can be used to generate power and manufacture steel, referred to as steaming/thermal coal or coking/metallurgical coal respectively. Coal is mined commercially in over 50 countries with China being the largest producer of coal in the world, producing over 2.8 billion tons of coal in 2007, or approximately 39.8 per cent of all coal produced in the world in 2007. The second largest producer, the United States, produced a bit more than 1.1 billion tons in the same year. Regional coal companies within our review are currently trading at an average current P/E and historical P/B of 17.9 and 3.5 respectively.

Iron ore mining ? Iron ore is the raw material used to make pig iron, which is one of the main raw materials to make steel. 98% of the mined iron ore is used to make steel. Iron is the world's most commonly used metal. It is used primarily in structural engineering applications and in maritime purposes, automobiles, and general industrial applications (machinery). China produces approximately 770 million tones of iron ore in 2008, accounting 35 per cent of the world's production in that year. Regional iron ore companies within our review are currently trading at an average current P/E and historical P/B of 8.6 and 2.2 respectively.

Molybdenum ? Molybdenum is used to manufacture of aircraft parts, electrical contacts, industrial motors, and filaments, mainly due to its ability to withstand extreme temperatures without significantly expanding or softening. Molybdenum is also used in alloys for its high corrosion resistance and weldability. China produced approximately 59.8 million tonnes or 28 per cent of the world's production, of molybdenum in 2008, ranks 2nd after United States which produced approximately 61.4 million tones of in the same year. Regional Molybdenum companies within our review are currently trading at an average current P/E and historical P/B of 15.2 and 2.3 respectively.

Our review of companies listed in Australia, China, Hong Kong, Indonesia and Singapore commands an average current P/E and historical P/B of 15.8 and 2.9 respectively.