Feb 27, 2018 Guest(s): Ron Hochstein CEO, Lundin Gold
The gold mining space is seeing lackluster investor sentiment but it's only a matter of time before sentiment shifts and investor activity picks up, said Lundin Gold CEO, Ron Hochstein."I think it's sort of in a relaxing space right now," Hochstein told Kitco News on the sidelines of the BMO Global Metals & Mining Conference. "People are still just not being aggressive or opportunistic to look at gold, and so, we're still not quite there in that exciting space yet, but we'll get there."Hochstien's outlook on the sector comes after Newcrest Mining announced Monday that it was acquiring a 27% interest in Lundin, deal worth $250 million. This latest round of fundraising completes Lundin's financing efforts for its main asset, the Fruta del Norte mine in Ecuador. "It's not only the Newcrest deal, but further commitment from Orion Mine Financial, who had previously worked with us on a stream and a gold prepay for $300 million," Hochstein said. "And then, the Lundin family came in for an additional $50 [million], so this essentially completes our financing for Fruta del Norte, so we're ready to go now and focus on construction."