Highlights from the Video:
1. Gold is experiencing supply side issues.
2. Mergers & Acquisitions on the horizon.
3. Demand for gold supply will be exceptional in Canada, and especially in the Abitibi.
“The miners have been depleting their reserves without replenishing them. There is a severe supply side issue on the horizon. Owning these future mines, the next generation of Canadian production. This is going to provide exceptional leverage to the gold price, which we in itself think is going to rise.”
Gold Getting Stronger
“We’ve seen gold being strong, ever since the bloodbath if you will of 2015. The price of gold has been strong in American dollars…these miners are making money at these prices. If you can’t you should probably go into a different business. So I think the metal prices are strong but the equity prices have not been reflected in that.
So while we’re sort of mid-cycle in terms of bull prices, I think we’re at the bottom of the trough in terms of equity prices. When it comes to the junior side of the business, they’re still gun-shy from 2015, a lot of money was lost and that’s because the industry under-delivered, it’s as simple as that. And while there has been some recovery, the speculative investor, and that’s a very important part of our industry, has fled. And they have fled to, fast-moving, so called ‘sexy’ sectors which would include the cannabis or the pot market, cryptocurrencies, block-chains et cetera.”
The Speculative Investor
“The speculative investor will eventually come back to mining but not on its own. We need to give them good reason to and I think M&A is going to be that catalyst, it’s as simple as that. When the market starts humming and the big guys start buying the other big guys and then the mid-tier guys start merging and then it all trickles down to the juniors. That is going to create a lot of interest and interest begets more interest and then there you go we begin the next cycle.”
“Gold is scarce, yet abundant – it’s economic recovery is a pure function of its price. In a higher price environment, more gold is considered “economic” – that is, we can go deeper or mine lower grades.”
“Canada is the world’s best mining jurisdiction and the political pendulum is swinging back in favour of the industry. Canada has a long way to go in terms of its growth in gold potential. It’s is a great place to do business. It’s a mature mining industry but is has a long way to grow.”
“The best place to find a mine is on an old mine. Why? Because we know the geology, there’s been extensive drilling, we understand the ore body as it was or as it is, we understand the metallurgy, there’s a lot of data and drilling….And what’s very important, again ties back in to the data, is there’s new interpretations of this, there’s new ways of looking at it, computer programs are better smarter et cetera. But also new ways of looking for human interpretation is important.”