14th May 2021
Good afternoon, everyone, I hope you’re anticipating the end of Friday as much as I am.
This week I want to share some thoughts that I’ve had that were spurred by this article on mining.com. I thought it was a really fascinating piece, which looks at the gap in market valuations between even the biggest mining companies and tech giants like Apple, Facebook and so on. What we see is that companies our industry considers giants – Anglo American, for instance – are dwarfed by the Netflixes of this world. And all this in a context of surging metals prices; the gap was even bigger this time last year.
It seems, in many ways, like an ironic reflection of the state of the world that companies that provide excellent but fundamentally non-essential services, like social media platforms, can so dramatically outgrow the companies that provide the most basic essentials for modern life; indeed, the essentials that the tech companies require for us to buy and run their products. It seems odd that the biggest gold companies in the world look tiny compared to Apple – how much gold is in an iPhone? And this is to say nothing of the transition to renewable energy that’s slowly gathering pace – if the copper price reaches $20,000, as the article suggests it must to power the green economy, the mining companies will still be tots compared to the companies that run the tech.
But all this, actually, makes for good long-term news for investors in the minerals world. Firstly, the demand for metals like copper will (over the long term) only grow, which means that prices will too, and perhaps the current moment represents a time before the world has woken up to the real value of these resources. And secondly, the investment in tech shows that there is plenty of money floating around – we have almost limitless money to spend on things we like very much but don’t fundamentally need, so when push comes to shove the resource sector can be confident that the money exists, somewhere, to fund it. It might be irritating to miners in the present to see the money heading elsewhere, but hat is a sign of an economic system where everyone, from major investors to the average Joe, has money to spend on the fun side of life, and without the metals that miners produce, that would all fall apart. What a time to be alive.
Around the Traps
Great news for Goldplay Mining (TSXV:AUC, FSE:9FY), who have completed a $361,100 private placement with Raymond James Ltd. In addition, their listing on the Frankfurt Stock Exchange has come through, and they have plans to list on the OTCQB. Read more about it in this news release.
New Pacific Metals (TSX:NUAG, OTCQX:NUAG) is a well-funded Bolivian silver company with nearly CAD$60 million in the bank, according to their latest financial results. They have spent the last quarter advancing the PEA on their flagship Silver Sand discovery, acquired a 98% interest in the new Carangas project, and made progress on their exciting Silverstrike zone.
Mountain Boy Minerals (TSXV:MTB, OTCQB:MBYMF, FSE:M9U) has made a big announcement this week, with the consolidation of the Telegraph Project in British Columbia’s Golden Triangle, which is highly prospective for copper and gold. Like much of the mineralisation in the area, it’s a porphyry, and it will be fascinating to see what the team at MTB can dig up.
Mammoth Resources (TSXV:MTH) is also having a good week, having released modelling based on their infill drilling and geophysics surveys at their Tenoriba gold-silver property in Mexico. They’ve identified four interesting targets, and President and CEO Thomas Atkins said: “We're very pleased to see such a compelling combination of so many coincident indications of mineral potential in the numerous, extensive trends we see over this initial 2.4 kilometres of 3D drill target modelling.” For a really great technical news release, see here.