Torex Gold meets 2024 guidance while prepping Media Luna in Mexico
The Toronto-based company produced 452,523 oz. gold last year, it said Thursday.
The dramatic fall in the juniors makes them interesting investments, said Rick Rule who explained the dramatic decline in the junior market.
In an interview with CNBC, Rule said that the demand is still there.
“The idea that mineral commodities will go out of favour doesn’t make sense,” said Rule, chairman of Sprott US Holdings.
The drop has been precipitous. The gold juniors (NYSEARCA:GDXJ) have dropped 62% year to date.
Asked what happened, Rule said the juniors to blame.
“There worst wounds were self-inflicted.”
“We had a bull market in the juniors from 2003 to 2010, and the over valuations, the over capitalizations were from a historic point of view really, really, really dramatic.”
Rule said it takes time to “. . . wring out the sin that exists in the sector.”
“Because capital was so cheap the mis-allocations the junior sector made were truly legendary.”
Rule said investors have every right to hold those errors against them.
Rule also notes that the commodity sector is extremely cyclical and extremely volatile.
“And investors who don’t understand the sector are un-nerved by this.”
Image by Rathika Ramasamy
3 Comments
longgold
Rick, you truly are opinionated…the reason the junior sector is demolished is because of greedy warrant mongers like you.
Gongadin
How on Earth did this bloke get on TV?
Rob
Rick Rule has been offering commentary on the junioy mining sector for 25+ years that I can recall. Her knows when to keep his powder dry and when to take his shots. Eric Sprott picks his asscoiates with great care.