The Vancouver Resource Investment Conference 2022 has been postponed to May 17-18 in order to enable a life event. January was impossible because of COVID restrictions. The event has been covered by Kitco in a series of videos.
All Kitco anchors were present. David Lin has been covering a number of macro topics in his interviews with Nomi Prins: How many rate hikes can the Fed really manage in 2022? Recession may benefit stocks (classical perverse logic).
Michelle Makori interviewed (among others) gold equity investment veteran Rick Rule: Fed will back off aggressive rate hikes, but this asset will still be decimated – Rick Rule
Rick Rule, Founder of RuleInvestmentMedia.com and former President and CEO of Sprott U.S. Holdings, speaks with Michelle Makori, Editor-in-Chief of Kitco News at the Vancouver Resource Investment Conference to discuss the extent to which the Federal Reserve will raise interest rates this year, and which asset classes will be most affected.
Michael McCrae, mining specialist at Kitco has interviewed junior resources investor Mickey Fulp.
The summer of 2020 was most likely the height of gold miner prosperity, said mining analyst Mickey Fulp, who doubts that a period with high gold prices married with low energy costs will ever reoccur.
On Tuesday May 18 Mickey Fulp (who runs the Mercenary Geologist) spoke to Kitco at the Vancouver Resource Investment Conference.
Fulp warns that oil prices are high and will remain high: “Oil is going to be a key energy source for a long time to come”.
“Q3 of 2020 was the height of gold stock prosperity. I’m not sure we’ll ever see that again, because inflation and input costs have caught up. Before, margins were still very high, because we didn’t have these increases in energy and labor costs,” said Fulp. “The world runs on oil. Oil is still king. It’s going to be that way for my lifetime, and I would submit in your children’s lifetime.”
In March oil prices jumped to over $100 a barrel at the start of the Ukraine-Russia war. Gold miners have been on tear due to near record highs for the metal, which rallied near the start of the pandemic. In recent quarters some miners are flagging cost pressures that are shrinking margins.
In addition to costs, Fulp is also worries that the mining sector faces too many regulatory hurdles, citing Trilogy Metals which saw its access road to its Ambler project in Alaska held up by regulators, and Hudbay Minerals’ $1.9-billion Rosemont copper mine in Arizona facing its own regulatory hold ups.
“I am basically exiting the junior resource space. I am very bearish,” said Fulp.
‘One of the highest-grade undeveloped silver deposits in the world‘ – Blackrock Silver’s Tonopah
A maiden resource estimate announced in May for Blackrock Silver’s Tonopah West establishes the property as one of the highest-grade undeveloped silver deposits of its size in the world. On Tuesday Blackrock CEO Andrew Pollard sat with Kitco for an interview at the Vancouver Resource Investment Conference. Pollard highlighted that Blackrock Silver’s (TSX-V: BRC) deposit is in Nevada.
“This isn’t a new discovery, it’s a rediscovery. A hundred years ago, Tonopah Silver district is the reason why Nevada is known as the Silver State,” said Pollard. “Effectively we’re the first group to consolidate this district, the first group to ever drill it. In the old days, the old-timers did no drilling. They just mined these veins right from surface and followed them down along strike and underground.”
Nevada is mining friendly. In 2021 the Fraser Instituted ranked Nevada the #3 mining jurisdiction on the planet. Pollard said the project has substantial resource expansion potential remaining.
“We’re just picking up right where others left off, and 90 years later we’re showing that the last chapter’s yet to be written,” said Pollard.
Joe Mazumdar of Exploration Insights has been interviewed by Charlotte McCleod of Investing News Network: “Copper is the Commodity of the Decade, Ways to Get Exposure”
Investors often focus on the commodities of the moment, but which have potential over the next decade? Joe Mazumdar, editor of Exploration Insights, said copper is his pick. Aside from copper, the expert also spoke about financing, which he sees as the “big squeeze” facing the resource sector right now, especially as companies deal with higher costs. “You really need access to capital, and you really need to know that they can actually raise that money, no matter if the times are good or bad,” he said. “Counting on the retail sector to help you finance it probably is not a good strategy right now.”