Resource Sector Paradigm Shift – Part I

Resource Sector Paradigm Shift – Part I

There were a lot of long faces at the PDAC this year.   Many of the companies there were pulled off the waiting list when long standing attendee companies decided there was no point having a booth.  Others have expressed surprise that few companies seemed to be trying to market financings.  This was taken as complacency but it felt more like resignation to me.  For the record, resignation is better if you’re a contrarian.

The editorial this month deals with the sea change that seems to have taken place among major companies.   They are looking for a different type of project and that creates difficulties for Juniors  that focused on things majors are not buying right now.   It’s a long topic and I will cover the remainder of it in the next issue.

It was a very quiet month as you’ll see from the update section.   A lot of companies aren’t active enough to even come up with the traditional “PDAC Look at Me” news release.   That reinforced the point I’ve made before that it will be a slow turnaround and there will be only a small number of companies participating in the early stages of a rally. I’m pleased at how gold has held up against a very strong $US.  The type of strong economic stats I feared would knock gold down farther hasn’t done that. I hope that means this bottom doesn’t drag on too much longer.