OPPORTUNITIES
We look for properties to fit a wide range of development potential from proof of concept to near term production. Depending on our client’s needs, we identify properties that have a clearly defined next stage of exploration. We help identify the economic potential, and how to define what needs to be done next to achieve success so that a realistic budget and timeline can be established.
Gold and Silver properties with development potential still appear to be the go-to for our clients. But that can change…
Base metals
The analysts remain positive for 2018 on base metals where potential supply impacts are greatest: aluminum for example, is likely to see a major downshift in supply growth rates. Nickel has also likely reached a bullish long-term inflection point. Conversely, copper and iron ore are the most exposed to potential demand slowdowns going forward.
Copper: expect some pullback in prices in early 2018 as industrial demand from China continues to moderate.
Aluminum: demand outlook looks positive for aluminum in the near term.
Nickel: further price growth in nickel with more volatility expected.
Zinc: significant reduction in global supply and a strong demand will continue to support zinc prices.
Lead: lead batteries are being phased out and the market is well supplied for 2018.
Precious metals
The analysts believe that if global equity euphoria weakens in 2018, gold could stand to benefit significantly. There is a global backdrop of increasing geopolitical and financial market volatility. Gold and silver have a solid track record as liquid, and easily transferable, tangible assets.
Gold: expected rate rises in the US will exert downward pressure. A successful passage of the Trump administration’s tax package would boost equities and negatively impact safe haven assets like gold. However, potentially overvalued asset prices and geopolitical tensions could provide support. Analysts are forecasting a gold price of USD1,300/oz towards the end of 2018.
Rare Earth and Rare metals
This is getting to be a tight space and there appears to be adequate near-term development of resources to supply the foreseeable needs of the growing high-tech and battery industries. However, we have participated in exploring and evaluating lithium, gallium, and rare earth deposits in Canada and the US and will be happy to discuss the specifics of our client’s goals.