A major mining conference returned to Toronto last week, giving investors and speculators in the resources sector something to think about amid mounting pressures on economies around the world.
The Prospectors and Developers Association of Canada convention, known as the PDAC, gives market participants the opportunity to hear firsthand about many of the latest mining industry trends, including important metals, the hype surrounding lithium, and tactics to combat inflation. I got
Here, Investing News Network (INN) recaps some of the biggest highlights from the PDAC show floor.
Important metals predominate in PDAC
Many topics were discussed at PDAC, but one of the hottest topics on the show was the role of important metals.
In particular, the conference was very lively and interest in lithium increased.
During the show, mining giant Rio Tinto (ASX:RIO,NYSE:RIO) said it expects global lithium consumption to surge from 350,000 tonnes today to about 3 million tonnes in 2030.
Rio Tinto Chief Executive Officer Sinead Kaufman told the audience during his keynote address:
For junior miners wishing to produce lithium, one of the biggest hurdles is permitting. Speaking at the PDAC, Canada’s Minister of Natural Resources, Jonathan Wilkinson, said the country is reviewing its regulatory process for clean energy projects involving critical metals.
“The urgency of the climate crisis means it won’t take 12 to 15 years to allow new mines in this country,” he said. βThe work of establishing new mines must be efficient in order to impact the transition to a net-zero future.β
State of the PDAC floor
PDAC President Alex Christopher told INN that the COVID-19 pandemic will see the Games regain a strong presence in 2023 after a limited period of several years. “It’s great to be back to what I would call pre-COVID levels,” he said.
Click on the pictures below to get a feel for the atmosphere of the tournament.
Bankers share strategy for mining sector
A financial expert’s commentary on the mining space was one of the big draws of the show.
Analysts from major financial institutions including Toronto-Dominion Bank (TSX:TD,NYSE:TD), Bank of Montreal (TSX:BMO,NYSE:BMO) and Royal Bank of Canada (TSX:RBC,NYSE:RY) spoke . The current state of mining investment.
Jackie Przybylowski, metals and mining analyst at BMO Capital Markets, said investors should be prepared to actually look at companies they might be interested in putting money into.
Among other screening tactics, she tests whether she really understands the strategy of the companies she’s looking at, whether they’re moving in that direction, and whether their plans appear coherent. Ask yourself what
What challenges do miners face today?
Rising operating costs are a major challenge for resource companies as inflation impacts markets around the world, but geopolitical considerations are just as important, Przybylowski said at the panel. rice field.
“What we’re seeing today is that there’s really no longer a safe place to do business. It’s challenging on all fronts,” she said.
Risk management is always essential in mining assets, but BMO analysts told the audience that no jurisdiction is completely safe when it comes to the challenges seen in modern conditions.
When discussing risk modeling, Przybylowski said this is one of the most difficult aspects to factor into stock forecasts because even top analysts have to assess risk in a reactionary way.
Another immediate concern is the impact a recession may have on investors. The PDAC hosted a series of presentations by the newsletter writers, during which several experts pointed out the symptoms.
Lobo Tiggre, Editor and Founder IndependentSpeculator.comtold the audience in his talk that he did not expect a soft landing for the entire sector in the short term.
On a related note, Przybylowski said most of the investors she talks to on a regular basis have looked closely at past recession forecasts and are planning on a bullish long-term view. rice field.
The next wave of resource investors
Sonia Scarselli, vice president of the Xplor program at BHP (ASX:BHP,NYSE:BHP,LSE:BHP), spoke at a panel discussion focused on the need for mining to become more fashionable for a wider range of investors. A wave of new talent and investment.
She said one of the trends to follow is the voice of entry into mining from the tech sector. While acknowledging that this is a long-term change, experts said the mining sector could benefit a lot from these new entrants.
The theme of getting newcomers into mining was also discussed elsewhere at PDAC.
Experts such as Tiggre and Brien Lundin, editors of the Gold Newsletter, stressed that it’s easier than ever for people to start investing, and that mining has become a hot topic in trendy markets such as cryptocurrencies and cannabis. He said it could be a go-to market for new entrants who are experiencing it for the first time.
At her panel, Przybylowski added to this argument by saying the industry needs a younger perspective.
Rio Tinto’s Managing Director of Closure and Legacy Management, Peter Harvey, spoke of the need for new investment interest in the mining space, saying that mining companies are seeking to change the reputational issues plaguing the space. said more needs to be done. “We need to leave a positive social legacy,” he said.
Tips for investors
The show floor at the Metro Toronto Convention Center was packed with members of all walks of life in the mining industry for a week’s worth of insights, opinions and expert discussions on the industry as a whole.
keep an eye on INN YouTube channel The PDAC portal for more convention coverage and commentary on current issues affecting the mining investment space.
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.
Editorial 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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