Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
We have had the deepest and longest decline in the history of commodity equity markets. Just recently we have confirmed a breakout in the space and there is much more room to run. The pattern is similar to 2002 where the mining stocks doubled and everybody thought they had missed the boat, when in reality there were years of powerful gains ahead. The TSX Venture Exchange chart shows where we are now and just how far we have still to run.
The Brexit vote to leave the E.U. is bullish for gold as it creates uncertainty but the real driver for the long term gold price is currency devaluation, which is happening now globally at an unprecedented rate as most countries attempt to lessen the value of their debt.
Brien discusses specific companies. Avrupa Minerals (TSX-V:AVU), a prospect generator in Europe as well as Thunderstruk Resources (TSX-V:AWE), a company which has large reserves that have not been explored with modern techniques. Thunderstruck’s shares were down as low as 1c but are now 4c with plenty of room to run. Thunderstruck has acquired rights to 4% of the main island of Fiji with high-grade deposits of copper and zinc. Other companies discussed are Iconic Minerals (TSX-V:ICM) and Western Uranium (CNSX:WUC).
As gold rises it will drive other commodities including uranium which is likely to run as well. Western Uranium Corporation has new ore concentration technology called ablation, which greatly lowers the cost of it’s processing and so is poised to take off in an uranium run. Brien thinks copper and zinc will be among the first other metals to follow gold, especially if China’s economy picks up again.
http://palisade-research.com/five-charts-showing-why-gold-stocks-have-never-been-this-cheap-1-year-later/
Talking points from this week’s interview:
• The Brexit is bullish for gold
• Currency debasement is the real long-term driver of gold price
• Gold will drive other commodities up as it rises.
• The great Uranium run is going to happen again
Brien Lundin is the editor and publisher of Gold Newsletter, a publication that has ranked among the world’s leading precious metals and resource stock advisories since 1971. To learn more about Gold Newsletter, visit www.goldnewsletter.com. Mr. Lundin is also the host of the famed New Orleans Investment Conference, the world’s oldest and most respected gold investment event. To learn more, visit www.neworleansconference.com.
BY COLLIN KETTELL
