No end in sight for mining sector gloomy state: report
The first two months of 2015 failed miserably to dispel gloomy market conditions affecting the global mining industry, the latest study by SNL Metals & Mining published Wednesday shows.
Based on its own Metals & Mining’s Pipeline Activity Index (PAI), which monitors the health of the sector, SNL concludes that despite some isolated signs of improvement, key sectors such as copper, gold, silver, cobalt, molybdenum, nickel, platinum and zinc experienced major falls.
The bad news doesn’t end there. According to the report there are “early indications” suggesting the industry’s value will resume its downward trajectory this month.
Source: SNL Metals & Mining.
Financing by junior and intermediate companies — those with annual revenue of less than US$500 million — was pretty much the only major improvement. According to SNL the indicator went up in February, after a disappointing first month of the year. There were 21 financings of over US$2 million in the SNL database during February, amounting to a total of US$642.1 million. Of this total, 88% was from share issues, and companies listed on the TSX Group accounted for fully 95% of the total.
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3 Comments
BritishGeo
What a brilliant start to the day, yet more bad news for the mining industry! Will this ever end?!?!?!?! I miss doing what I am passionate about, this is getting ridiculous now. Anybody need a geologist, let me know, willing to relocate internationally, 3 years industry experience in gold exploration and resource definition…
rayban
This long term downtrend is not likely . Gold production peaks this year . Falls going forward . Populations increase faster as time goes onward . More money equals more coin and jewelry sales . The more people we have the more we can print credit money and maintain a balance of credit . The people like shiney things , I sure do . Most all types of metal getting lower grade and smaller deposits . Recycling getting much stronger and hits recycled peak . Prices get low , we have opportunity for future profit .
The experts say buy now , buy carefully low AISC and large deposits that are high grade . Buy companies that have large areas of multiple , decent size deposits of easy metallurgical results , ie Oxide .
I retract what I said about Capitulation . We may get forced capitulation . I am long and staying long , I have never been short , may someday . I cannot see 2025 as a target for price corrections . The number of larger microcaps going under says to me the better is closer than the bad . We must be past half way through .
I only have 1 bad thought . Blind exploration may yield some large deposits . We see it sticking out of the ground is rarer . It may be 1 foot under the surface and huge .
Disclaimer , I have only been watching buying/selling for 6 years . There are 30 and 40 year veterans around . I must defer to their competence . I give no advice .
Ron
not all is gloom, gold and some associated commodities are showing countercyclical behaviour