Andrew Kaip, managing director of mining equity research at BMO Capital Markets, says the stark reality is that the precious metals sector is only part way through a down cycle and that structural issues will result in a fresh phase of consolidation.
In this interview with The Mining Report, Jason Mayer of Sprott Asset Management examines near- and long-term plays that look poised to deliver returns, and shares his criteria for selecting profitable investments in volatile resource markets.
For over a decade, mining companies have relied on a rising gold price to reward their decisions, regardless of whether they were good decisions. Those days are over, and Chen Lin says that investors must embrace companies that can grow their balance sheets even with gold as low as $1,000/ounce.
The gold price may have taken a tumble, but Ian Gordon is watching for a recovery. As bullishness in gold reaches some of its lowest levels, Gordon says he believes that is indicative of a turn and he discusses where he has invested his money to ride the upswing.
The legendary chairman of Sprott Inc. says it's time for people to take matters into their own hands and that means pushing further and further into precious metals equities as well as physical gold and silver.
'We have to get back to basics, back to capital investments and making things - important things. Great countries mine metals and minerals,' he says and shares several companies that are making important things or well on their way.