From March 4 to 7, some of the brightest minds and biggest investors in the resource space gathered in Toronto, Canada, for this year’s Prospectors & Developers Association of Canada (PDAC) conference.
With presentations throughout the four-day event, there proved to be a wealth of knowledge to go around, plenty of attendees eager to learn, and no shortage of experts willing to share.
Throughout the event, Investing News Network was able to catch up with over 35 notable names in the industry. They each sat down and shed some light on what investors should know moving forward through predictions, opinions and advice.
For everything you need to know on investing in the resource space, here is INN’s full video recap of PDAC 2018.
Rick Rule: One Piece of Advice for Investors This Year
Rick Rule shares the one key piece of advice he has for investors in 2018. He also discusses gold and other commodities he’s interested in right now.
David Morgan: Best Bang for Buck is in Well-chosen Mining Stocks
David Morgan spoke about how every metals portfolio should have physical precious metals, and how choosing your mining stocks wisely would prove to give the most bang for your buck.
Mickey Fulp: We Have a Long Way to Go in this Bull Market
Making reference to being at the “bottom of the second in a nine-inning baseball game”, Mickey Fulp spoke about how the resource industry has a long way to go. “The bottom was in January of 2016, prices bottomed,” he said. “They’ve gone up, but they generally go up two steps forward and one step back, or in step-wise fashion. We really like seeing that because that’s a healthy market.”
Tookie Angus: It’s a Discovery Drill Hole Market Right Now
Tookie Angus, a veteran of mining deals, offered investor advice at PDAC, explaining the importance of networking and educating oneself on the industry. “You’re going to learn things by being [at events like PDAC] … you’ve got to understand what’s going on in this game, and it takes awhile to learn.”
Lawrence Roulston: The Smart Money is Back in the Mining Space
Managing Director of WestBay Capital Advisors Lawrence Roulston spoke about how he believed that “smart money” was back in the mining industry. “We’re seeing the players that really know the industry and understand the cycles aggressively investing right now. The retail crowd hasn’t come back yet,” he said.
Paul Robinson: Watch These 2 Commodities Trends in 2018
Director of CRU Group Paul Robinson discussed two big commodity trends that investors should watch for in 2018, both being environmentally friendly.
Benj Gallander: These Industries Have Potential in 2018
Benj Gallander, the head of Contra the Heard Investment Letter, gave both his insight on which industries could boom in 2018, as well as advice to investors about not getting ahead of themselves when considering future endeavours. “I think one of the best ways to get a sure return is to pay off your debt, or pay down your debt,” he said.
John Kaiser: Gold Price and New Investing Ideas for 2018
John Kaiser of Kaiser Research gave INN his input on where the gold price could go later this year, along with a statement about how the “PDAC curse” wouldn’t impact the resource space the same way it previously had. “This year [the PDAC curse] won’t happen because the resource companies have barely budged … they’re flatlining, continuing the trend from the rest of last year,” he said.
Rob McEwen: Gold Price Could Hit $1,800 This Year
Chairman and chief owner at McEwen Mining (TSX:MUX,NYSE:MUX) Rob McEwen forecasted that the gold price would rise in coming months, and also predicted what the precious metal’s price may look like in three to four years. “We’ll be higher than we are today. I’d like to see it try to take a run at $2,000,” he said. “I think $1,800, maybe a little better than that. And $5,000’s three, four years down the road.”
Brent Cook & Joe Mazumdar: Gold Deals, Stock Pick and What to Avoid in 2018
Co-editors of Exploration Insights Brent Cook and Joe Mazumdar discussed the process behind major companies collaborating with juniors, and what helps seal the deal. “[Majors are looking for] big land packages, with big-type targets, run by competent geologists,” Cook said.
Brien Lundin: Gold Price Outlook Uncertain in the Short Term
Brien Lundin, editor of Gold Newsletter, explained how trying to predict gold prices in the short-term has proven difficult due to market fluctuations from fear-inducing headlines. “Fed minutes, the White House pronouncements, a lot of things. We can’t really predict what the headlines are going to be. But not only that, the markets have been reacting in different ways than they have in the past to each new event,” he said.
Louis James: A Sideways Gold Price Means Stability
While many investors in the resource space may be hoping for gold prices to increase, Louis James discussed some of the benefits behind the precious metal staying stagnant for awhile. “If we trade sideways all year … sideways is another word for stability,” he said. “If you’re a miner, then you can count on your prices. How wonderful is that? You know where to set your costs.”
Adrian Day: 2018 Will be a Positive Year for Gold and Gold Stocks
Chairman and CEO of Adrian Day Asset Management, Adrian Day forecasted a prosperous year ahead for the gold market by touching on key factors including inflation, interest rates and concerns about other markets. “All of these add up to a positive year for gold,” Day said.
Jeffrey Christian: Volatile Period Ahead is Positive for Gold & Silver
Jeffrey Christian, managing partner at CPM Group, spoke about recent market volatility with regard to U.S. President Donald Trump’s tariffs on steel and aluminum imports, how the market could crash between 2022 and 2024, and how that would benefit gold and silver prices in the long-term.
Jayant Bhandari: I’m Optimistic About Gold for 2 Reasons
Analyst Jayant Bhandari gave his insight on why he’s bullish on gold — part of the reason being the current hype around cryptocurrencies. “There is a reason why people want to protect their wealth, and that was the reason why so many people invested in cryptocurrencies — it was the same psychology that led them to cryptocurrencies. But some of these people will come back to gold,” he said.
Bart Melek: Gold Volatility, Trump’s Tariffs and Outlook for Commodities
Director and global head of commodity strategy at TD Securities (NYSE:TD) Bart Melek spoke about how the one of the biggest contributors to gold market volatility in recent months has been “the realization … that the [U.S.] Federal Reserve may be a little bit more hawkish than I think many have expected.”
Frank Mariage: “Gold is Still Attracting Attention”
Partner at Fasken, Frank Mariage spoke about how gold still remains a popular choice among investors, but that there are other options worth exploring as well. “Obviously gold is still attracting the attention, but we have the new metals now. The industrial metals, lithium, cobalt. That’s generating a lot of activity.”
Mark Ferguson: Gold Projects and Exploration Budgets in 2018
Mark Ferguson of S&P Global Market Intelligence spoke about historical values behind financing exploration projects, and touched on how lithium has seen “very strong growth, even stronger than cobalt. I think there’s over 130 companies exploring for it in 2017, and their budgets also went up … I think it has quadrupled.”
Dr. Kal Kotecha: “Gold and Silver are Undervalued”
Dr. Kal Kotecha, founder and editor of the Junior Gold Report, said he predicts a major crash coming to the market in the next two or three years, elaborating by saying that “individuals who prepare themselves now are going to be quite happy down the road.”
Fred Davidson: Silver Price is Much Stronger Than it Was
President and CEO of IMPACT Silver (TSXV:IPT) Fred Davidson discussed how silver is much stronger than it was, despite some “weakness in the pricing”, and spoke about how his company is expanding its production. “With the strengthening in the lead and the zinc [prices], we’re going to put back our zinc circuit back into production again.”
Ross McElroy: Uranium Demand Continues to Grow
President and COO of Fission Uranium (TSX:FCU) Ross McElroy discussed how uranium demand is on the rise right now, noting that China is making very notable headway with its production. “[China is] building at a rate of around eight to 10 new reactors a year … we will see them become one of the largest consumers of nuclear fuel.”
Leigh Curyer: Uranium Prices to Gain Momentum in 2019, 2020
Director and CEO of NexGen Energy (TSX:NXE,NYSE:NXE) Leigh Curyer spoke about the growing rise in demand for nuclear energy and touched on how production cuts from big-time producers like Cameco will put uranium prices on the upswing in the not-so-distant future.
Brady Fletcher: Energy Metals Should Have a Positive Year
Brady Fletcher, the managing director of the TSX Venture, discussed which commodities are currently seeing worthwhile growth, and which ones could maintain their current strength. “When you think about where some of those other trends are coming in, it’s in the blockchain space. I’m long-term blockchain technology bullish, and I think that application is going to be important.”
Kai Hoffman: Gold Financings “Omnipresent,” but Watch Battery Metals
Oreninc CEO Kai Hoffman discussed how battery metals are on the rise, and while precious metals like gold are always popular, there are worthwhile contenders in the resource space. “Gold is always omnipresent,” he said. “But it’s definitely the battery metals that are taking a lot of the limelight right now.”
Anthony Milewski: “It’s a Really Important Time for the Cobalt Market”
CEO of Cobalt 27 Capital (TSXV:KBLT) Anthony Milewski discussed how the emergence of electric vehicles will cause a surge in demand on cobalt in the coming years. “[By 2025] at a 15-percent rate of EV adoption, the market is short around 250,000 MT of cobalt, and all of that needs to go to electric cars,” he said.
Chris Berry: Lithium Volatility, Cobalt Supply Deals and the Battery Metals Space
Chris Berry, founder of House Mountain Partners, shared his insight on the future of battery metals in the resource space, touching on the SQM (NYSE:SQM)-Corfo deal signed in January. “The fact that an agreement is now in place for SQM out to 2027 or 2030 is on a net basis positive for lithium overall,” he said.
Alex Laugharne: “Lithium Oversupply Fears Are a Bit Overblown”
Principal consultant at CRU Group Alex Laugharne spoke about how CRU Group anticipates seeing 7.5 million electric vehicles by 2025, and how full-battery electric vehicles are generally favoured over plug-in hybrids. “That breakdown is quite important because the battery capacity in a full-battery electric vehicle is substantially larger than a plug-in hybrid,” he said.
Patrick Highsmith: Lithium Oversupply Forecast is Overly Optimistic
Patrick Highsmith, CEO of Pure Energy Minerals (TSXV:PE) discussed the current state of the lithium market, touching on how some projects might be a bit too optimistic for their own good right now. “My guess is there’ll be a little less lithium coming online and it’ll take a little longer than projected,” he said.
Mark Selby: “Nickel Has Strong Fundamentals Even Without the EV Story”
President and CEO of RNC (TSX:RNX) Mark Selby discussed how nickel has always been a reliable investment on the market. “Nickel has had one of the highest-growth demand rates for many, many decades,” he said, going on to explain that demand has grown over 5 percent a year for the last 10 years.
Brian Leni: Buy Quality and Look for “When” Stories
Founder of the Junior Stock Review Brian Leni shared his insight on why he’s bullish on nickel and zinc in particular, part of the reason being the low supply when it comes to zinc. “We just can’t develop mines quick enough to meet the demand, so the zinc story is very strong in my view,” he said.
Ryan Cochrane: Zinc Prices to Peak by Mid-2018
Lead, zinc and precious metals research manager at CRU Group Ryan Cochrane discussed the status of the zinc market, and advised investors to keep their eye on stockpile levels, which he anticipates will stay low, similarly to 2017. “I guess the key question in the zinc market is how much unreported material there is and how it’s spread across the world,” he said.
Donald R. Taylor: “Right Now Zinc is the Hot Commodity”
COO of Arizona Mining (TSX:AZ) Donald R. Taylor, who received an award at PDAC 2018 for Arizona Mining’s 2014 discovery of what is now the Taylor lead-zinc-silver deposit, discussed how the company is now sitting on “one of the largest lead-zinc deposits in the world.”
Gianni Kovacevic: Why Investors Should Look at Copper and Top Stocks
Author of “My Electrician Drives a Porsche?” Gianni Kovacevic discussed his top stocks in the resource sector, as well as the copper market and why he also has his eye on battery metals right now.
James Kwantes: More Diamond Market M&A in 2018?
Editor and publisher of Resource Opportunities James Kwantes discussed some of the commodities he’s got his eye on right now, such as graphite. “I like graphite because it’s a battery metal — lithium gets a lot of buzz, cobalt has gotten a lot of buzz … but graphite is still important for batteries, yet you don’t hear much about it,” he said.
Wally Schumann: “We Have Mineral Potential that Rivals the Ring of Fire”
Northwest Territories Infrastructure Minister Wally Schumann spoke about why the territory has great potential for mining exploration, but needs more financial assistance with its infrastructure to make it happen. “We’re the third-largest producers of diamonds in the world. But the thing about those is you can bring them out in a suitcase every month. When you start moving the hard-rock material, that makes it a challenge when you have a winter road system that we have,” Schumann said.
Nick Zeng & Chris Guilbaud: Vanadium Flow Batteries Need an Elon Musk
Nick Zeng, chairman, president and CEO of Golden Share Resources (TSXV:GSH), and Chris Guilbaud, board director at the company, spoke about vanadium flow batteries and how the technology needs an effective salesperson. Zeng highlighted Tesla’s (NASDAQ:TSLA) Powerpack project in South Australia, saying it’s the “perfect project for the vanadium flow battery. When we’re talking about just the technology alone, I think for that kind of project a vanadium flow battery is better.”
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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