Brent Cook is one of the preeminent global resource exploration analysts/geologists. His insights are always well considered and usually sharp and to the point. So when he writes a paragraph like the following it’s time to pay attention:
“I think the reality has finally set in that around 90% of the juniors will never find anything of value. Further, that even when successful maybe half the deposits are sidelined by 1) metallurgical problems, 2) geotechnical issues, 3) capital costs, 4) jurisdictional/political realities, or 5) metal prices. We can’t seem to win even if we win.“
Depressing….and true. Although, one must admit that these sorts of sentiments written by a man whose livelihood largely depends upon money flowing into the resource sector could be fodder for sentiment contrarians looking for more evidence of die hard bulls throwing in the towel on a long beleaguered sector.
However, in the final paragraph of his latest musing Mr. Cook admits as much….
“It looks pretty dismal and scary out there in Mining Land, just like it did in 2000 and at the bottom of every previous bust. And like then, the hardest thing to do today is to put on your dust goggles and head into the abyss to buy another doomed junior mining company.
So don your googles, fortune favors the bold…”
Don’t waste any time, click over to read the rest at Exploration Insights: “Part II: Will mining boom again, Dad?”