Of the many challenges facing the mining sector right now, the biggest one is investor sentiment, says Joe Mazumdar, mining analyst, editor and writer of the Exploration Insights Newsletter.
Mazumdar, who also flags increased geopolitical and operational risks and market volatility as headwinds for the sector, says that’s despite a positive outlook for critical minerals like uranium and copper, and a strong gold price.
“Even though gold didn’t do too badly, the problem was the sentiment just wasn’t there. And it’s worse for non-cash-flowing juniors because they have to go back to the market to raise, and they’re reluctant, or their current shareholders might be reluctant to raise at these valuations,” Mazumdar said.
Mazumdar spoke with The Northern Miner’s western editor Henry Lazenby at the Vancouver Resource Investing Conference (VRIC) in January in a conversation that also touched on gold demand from ETFs and central banks, increasing operational costs for miners, and rising geopolitical risks.
Watch the full video below:
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