Mining Review Sunday Update PDAC 2022
Another poor week for the junior mining sector as prices slid further downwards, with the TSX Venture Exchange Index down 9% in a week.
It was the week that Osisko Development announced the temporary closure and care and maintenance of the former Barkerville Gold’s Bonanza Ledge Mine in the Cariboo, due to the higher costs of mining. […]
Mining Review Sunday Update PDAC 2022 Edition
PDAC 2022 took place last week, and it was another poor week for the junior mining sector as prices slid further downwards, with the TSX Venture Exchange Index down 9% in a week.
As it is June, rather the normal March date for the show, the slide cannot be attributed to the dreaded “curse of the PDAC“, as markets have been sliding for weeks now.
I attended PDAC 2022, along with 17,000 others, which is quite a drop from the 24,000 that normally attend the conference.
Speaking to booth holders investors were very thin on the ground, whereas people seeking business opportunities and employment were in abundance. One company told me they had spoken to only 4 investors all day on Tuesday!
I touched base with quite a few companies from previous years, but many were missing, and the company count was 200 lower than 2020. This resulted in a large dining area being placed at one end of the Investors Exchange to fill the space.
Overall I was pleased I attended, it was good to connect with people again.
I enjoyed a train trip to Niagara Falls and a live baseball match in addition to the conferences, so it wasn’t all work.
It was also the week that Osisko Development announced the temporary closure and care and maintenance of the former Barkerville Gold’s Bonanza Ledge Mine in the Cariboo, due to the higher costs of mining.
This is the first such announcement, but with soaring fuel costs for miners dependent on operating off grid, I expect more to follow in due course, especially if diesel prices continue to climb due to the boycott of Russian diesel.
It’s become vital for investors to check the AISC of any producing miners in their portfolio, and if they are low margin and using diesel, then assess whether they are a good hold with the elevated fuel costs as well as other capital costs eroding what is already a thin margin.
Low cost producers look a much better bet currently, it really is time to take a long hard look at one’s portfolio for any weaknesses.
As I have been away at the Toronto conferences, news updates for companies we follow is light this week.
News from companies on our watchlist;
Weekly price changes
All quoted in US$
|Gold / Silver Ratio||84.16||-0.99%|
|10 yr Treasury Bond (TNX)||3.24||-0.61%|
|US index (DXY)||104.64||+0.32%|
|RJI (Rogers Index)||9.08||+0.22%|
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