The Canadian mining executive and veteran of the resources industry believes there will be a big turnaround for both metals and commodity-focused companies.
Equinox Gold (TSX:EQX,NYSEAMERICAN:EQX) Chairman Ross Beaty spoke before a packed audience at the recent Vancouver Resource Investment Conference (VRIC) to share his views on the mining sector as a whole.
Beaty is a household name in the resource market and has been inducted into the Canadian Mining Hall of Fame. back in 2018.
In a conversation with Cambridge House president Jay Martin, the firm’s builder said he expects Equinox Gold to be his “last firm.” The company recently celebrated its 5th anniversary. In discussing Equinox’s progress, Beaty told the audience that he sees producing gold in Ontario will allow the company to measure its true success.
He also explained why he believes virtually all metals are currently in a strong position.
How to deal with resource market volatility
As VRIC host Jay Martin reminded the room, this year’s conference was filled with newcomers to the mining investment space. With that in mind, his discussion with Beaty began with advice on how to deal with market volatility.
“One of the things that investors tend to forget is that it’s cyclical,” Beatty said, referring to waves of high performance in stocks and subsequent market declines, giving investors a sense of what they could do. It should be kept in mind when looking for strategies, he said.
According to Beaty, moments of chaos tend to represent good buying opportunities.
“When everyone is crying in the street and there is fear and hate in the field, it’s time to buy. That’s what I’ve built my career on,” he said.
Experts emphasized how important it is for investors not to get too caught up in the moment, for better or worse.
“For me, this is one of the biggest trends that investors should remember in this industry: things aren’t good forever and things aren’t bad forever,” Beaty said.
Current market conditions offer good buying opportunities
While discussing progress in the resources sector, Beaty didn’t chop a word and called 2022 “an absolutely terrifying year” for both companies working in the metals and mining sectors.
Experts pondered why there was such a discrepancy between the market’s positive fundamentals and its performance.
“Last year and now it’s a great time to buy stocks because we’re going through a bear market and I think we’re about to enter a really great bull market where the juniors explode “This is a historic period,” he said.
Experts stressed that they believe mining stocks are embarrassingly undervalued.
“I don’t think there has ever been a more interesting time in my career with mining and metal mining,” he said.
“Today, virtually all metals (not all metals, but almost all metals) have bullish conditions at the same time…almost all metals on the periodic table are in good places where people want them, increasing demand.” … so you have this great, great time today when almost every metal is bullish,” added Beatty.
As a follow-up, he said metals stocks have struggled in 2022 and “only a little bit of money has flowed.” However, he is confident that a great rally is coming soon. “I think it’s a coil spring now,” he said.
See our VRIC interview with Investing News Network’s Beaty above.
Beaty was similarly bullish in a conversation with VRIC’s Investing News Network.
“This year could be a really fun market for those junior stock investors who have been hit hard and have delivered terrible returns to poor and struggling investors over the past few years.
click here Watch the full VRIC playlist on YouTube’s Investing News Network.
don’t forget to follow us @INN_ Resources For real time updates!
Stock Disclosure: I, Bryan McGovern, do not make direct investments in the companies mentioned in this article.
Editor’s Disclosure: Investing News Network does not guarantee the accuracy or completeness of information reported in interviews it conducts. The opinions expressed in these interviews do not reflect those of Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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