A very reliable source tells me that the CIM Conference in Vancouver had a very interesting session on Wednesday afternoon, presented by investment analysts and the CIBC ( a big Canadian bank with a lot of stake in China). The message was clear : A version of the supercycle is fast approaching as China (and India now) get back to their activities of developing their huge middle-class society with new salaries etc. Additionally it was very clear that exploration drilling in the global mining industry is fast gaining traction.
This is all good news for metal prices which, apart from gold and platinum, have all suffered over the past month. I hope to hear more views on this at MEI's forthcoming commodity conferences, Precious Metals '10, Nickel Processing '10 and Zinc Processing '10.
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The indicators all support the comment that the minerals industry is accelerating. My personal feeling is that we are in for a period of the bigger (cash flush) fish gobbling up some attractive projects where the juniors are unable to secure funding to move forward.
ReplyDeleteTom Bookless, Turgis Consulting, South Africa
Yes minerals industry is indeed picking up. All of my clients connected with minerals are expanding. They have more orders than they could cope with.
ReplyDeleteFerdie Cabotaje, Tekton Prefab CTC
A word of caution. Bank of America Merrill Lynch told clients yesterday to be more cautious about the mining industry from now on, saying that further pain for investors was likely because of continuing market volatility and worries about the economy of China- the biggest customer.
ReplyDeleteD.O., Colorado, USA