Investing

Joe Mazumdar: Gold, Nickel, Lithium Dynamics, Plus Current Strategy and AI in Mining

Joe Mazumdar, editor of Exploration Insights, gave his latest thoughts on trends in the junior resource sector, as well as his outlook for specific commodities, including gold, nickel and lithium.

Looking first at gold, he said he thinks with the price at historic highs it’s a good time to review the market.

‘Find those quality plays and start accumulating, because the gold price is there,’ he said, noting that strong central bank buying has provided support for the yellow metal in the face of high interest rates.

In the nickel industry, major miners are under pressure as Indonesia floods the market with material. They are finding that although they produce ‘greener’ products, end users aren’t yet ready to pay that premium.

‘The problem that I’m seeing with a lot of nickel outside is it’s very difficult to build,’ Mazumdar said. ‘The projects that we have in Canada are huge, low grade — we’re talking $2 billion, $3 billion for some of these. And who’s going to fund it? You might get funding from the Canadian government … but that little bit of equity doesn’t exist. And until the US or some of these other guys come and say, ‘We’ll help you build it,’ I don’t know how these projects get built.’

Lithium is also in a tough position right now, and Mazumdar said a risk in that arena is technology — for example, direct lithium extraction, which could put pressure on spodumene, and newer non-lithium battery technologies.

‘The big deal for me in this critical minerals thing is that technology’s not constant,’ he said. ‘If people have a risk in terms of a mineral commodity … they’ll look for a way to put it outside the product if they can’t secure the supply chain.’

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

You May Also Like

Latest News

Kim Jong Un attended a “paramilitary parade” with his daughter to mark the 75th anniversary of North Korea’s founding on Saturday, the country’s state...

Stock

Target said Tuesday that it will close nine stores in major cities across the country, citing violence, theft and organized retail crime. The company will...

Investing

Cybercrimes are a growing problem for individuals, businesses and governments alike. Still, many people continue to ask the question, “Why is cybersecurity important?” For...

Stock

The Consumer Price Index hit 3.2% in July, compared with 3% in June, the Bureau of Labor Statistics reported Thursday. Once again, food prices...

Disclaimer: aimyourdeals.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2023 aimyourdeals.com

Exit mobile version