Tracking a miner's costs are just as important for anticipating stock jumps as keeping an eye on metal prices, said Neil Adshead, consultant analyst at Commodity Discovery Fund.
This week Adshead recorded Digging Deep with Kitco correspondent Paul Harris.
The gold market remains bullish after a strong start to 2024. Copper is in a different position despite the predicted deficit. There's been less interest from the mining majors in exploration and development. Copper projects are challenged by high costs and more technically challenged projects.
"When you look at the global pipeline of copper resources, there is a fair amount of undeveloped copper out there. It's just the high hanging fruit-if that's the phrase you can use-is more difficult to bring into production," said Adshead.
Kinross Gold reported significant margin expansion in its Q1, demonstrating the cyclical nature of a miner's costs and profits. Understanding these cycles can help investors predict potential share price movements, noted Adshead. Companies with higher costs often have greater leverage as the price of the underlying commodity rises.
00:00 Welcome to Dig in Deep with Kitco Mining
00:35 Conference Vibes and Mining Investment Insights
01:12 Understanding Margin Expansion in Mining
02:45 Leveraging High Costs for Greater Gold Price Leverage
03:40 Environmental Permits and the Importance of Land Ownership in the U.S.
05:27 Copper Market Dynamics and Exploration Alliances
11:30 The Challenge of Financing in the Mining Sector
13:40 The Intricacies of Orogenic Gold Systems
15:01 Navigating Corporate Controversies and Misconduct
16:07 The Importance of Accurate Drilling Results Reporting
19:37 Highlighting Notable Drill Hits and Future Prospects
21:49 Closing Remarks and Future Discussions
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7 июн 2024
