Sentiment In The Mining Sector Making Baby Steps - Beacon Securities
(Kitco News)- There appears to be light at the end of the miningsector’s very long and very dark tunnel, according to one research firm.
In an interviewwith Kitco News on the sidelines of the Mines and Money conference in Toronto,Michael Curran, managing director with Beacon Securities, said that his firm isstarting to see improving sentiment within the mining sector.
“We are seeingjuniors getting rewarded for good exploration news. We are seeing tradingvolume picking up for mid-tier and senior producers,” he said. “These arepositive baby steps for the mining sector.”
Curran said thathelping build excitement in the mining space is the recent merger announcementbetween Barrick Gold Corp and Randgold, which would create the largest goldmining company in the world; however, he also added that the market needs tosee higher prices.
Curran’s commentscame just before gold prices hit a three-month high. While the yellow metal hasbacked off its recent highs, the market is still holding on to most of itsgains. December gold futures last traded at $1,231.40 an ounce, down 0.50% onthe day
Curran added thatwhile he doesn’t know the timing of the next big upswing, his firm is confidentthat at least a bottom is in. “I am convinced that at the very least we are offthe bottom and it’s only a matter of time before we see higher prices.”
Although BeaconSecurity has exposure across the mining spectrum, Curran said that the firmtraditionally likes the junior producer space. That sector has some of the bestgrowth potential with the lowest risk.
One company Curransaid he likes is Atlantic Gold, which is expected to produce between82,000-90,000 ounces of gold at its mine in Nova Scotia.
“Junior producerswho can move into the mid-tier give you the double whammy of either beingrevalued as a larger producer or you become an attractive takeover target,” hesaid.
One interestingtheme at the Mines and Money conference was the impact other sectors likecannabis or cryptocurrencies are having on the mining sector. Curran was partof a panel discussion that touched on this theme.
Curran told KitcoNews that the mining sector has nothing to fear from the marijuana sector,adding that the money being made from rallying pot stocks will eventually begood for the yellow metal and the mining sector.
“The marijuanascene is going to look a lot different twelve months from now,” he said. “Ithink we are going to eventually see a rotation back into the mining sector.”
By Neils ChristensenFor Kitco News
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nchristensen@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication. |