VANCOUVER (miningweekly.com) – There is a noted general perception among the investment community, including private equity firms and high-net-worth individuals, that there is some money to make again in the rebounding mining industry, PearTree Securities president Trent Mell tells Mining Weekly Online.
“Following three years of net outflows from the precious metals sector, things have certainly reversed, to an extent, and that capital is being deployed. The several years of tough decisions not to . . . increase output at all costs and instead focus on cash flow metrics have reinstalled some of the faith in the investment community,” states Mell.
According to him, the industry as a whole has worked hard at gaining that trust back and, while he does not believe the industry to be there yet, there are certain signs it is improving.
Mell notes that, in Canadian dollar terms, the gold price is only about 5% off the all-time high, which bodes well for Canadian producers.
While attending recent mining conventions in Canada and the US, Mell noticed that all of the major gold miners attending had their development teams on site to get a better sense of what the juniors were doing.
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