Mines and Money Online Connect (EMEA) – Day one round-up

Following the hugely successful Online Connect APAC conference last week, Mines and Money on Tuesday opened the Europe, Middle East and Americas (EMEA) edition of the series. Online Connect aims to keep the conversation flowing across the global resources sector as the world slowly emerges from the COVID-19 crisis.

In Gold We Trust

In a morning session, fund manager and author of the recently published In Gold We Trust Report Ronald-Peter Stoeferle provided the Online Connect audience with a review of the eagerly anticipated annual report.

Stoeferle highlighted a continuing erosion in trust of central banks, particularly following the COVID-19 crisis, as one of many converging factors driving the start of a long gold bull market.

Escalating monetary and fiscal stimuli, the debasement of fiat currencies against the gold price and rising inflation are further contributors to a bull market that ‘has legs’ according to Stoeferle.

“Gold stabilises your portfolio and insures your losses on the equity side. Gold is now outperforming the stock market. We can also see strength versus the bond market and mining stocks are now outperforming gold.”

How has COVID-19 changed the mining investment?

In a keynote debate moderated by Graham Dallas from the Toronto Stock Exchange, a four-person panel of experts discussed how COVID-19 has impacted the mining investment environment and whether these changes or temporary or long term.

Anglo Pacific Group CEO Julian Treger highlighted a lack of bank financing for mining companies going forward due to possible bankruptcies in other sectors following the COVID-19 crisis.

“On the back of COVID, environmental issues will also become more important. And distrust of China could lead to the development of national supply chains,” he said.

Andrew Ballingal of Ballingal Investment Advisors predicted a rise in jurisdictional risk for mining companies post-COVID, particularly in developing countries. “We will see rising tensions & efforts by governments to claim more of the pie from producers.”

Part one of three 5@5 sessions this week!

Mines and Money’s weekly lockdown 5@5 sessions have proved hugely popular over the last three months, so the team has decided to put on three special editions this week for Online Connect EMEA.

Today’s 5@5 featured three renowned mining investors; Warren Irwin, Warren Gilman and Joe Mazumdar, and presenters from three interesting mining companies; Maritime Resources, Mawson Resources and Saturn Metals.

The session’s host, Jonathan Goodman from Dundee Corporation, told the audience that now is the best time to invest in junior resources firms in a generation, before adding that his company had exposure to all three presenting companies.

Check back to RGN tomorrow for coverage of Mines and Money Online Connect EMEA, day two