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(Kitco News) - A lack of liquidity is the main problem facing junior resource companies, but drilling success could revive interest in the sector, said Michael Gray, partner and equity research analyst at Agentis Capital.
Gray spoke to Kitco mid-July in Dawson City at Invest Yukon's Yukon Mining Property Tours & Investment Conference 2023.
"I think that the capital markets are in a sense broken, the traditional large funds that were coming down the food chain to fund the juniors have concentrated their portfolios and they've gone up the food chain mainly into the producers and the royalty companies and the odd explorer-developer," Gray told Kitco's Paul Harris.
"The issue right now for the explorer-developers is lack of liquidity. Fund managers really can't take on that lack of trading liquidity, with some exceptions, so we need to see results driving interest in the juniors."
Gray likes Snowline Gold, Cascadia Minerals, Western Copper & Gold's Casino project, and Fireweed Metals for its focus on zinc and tungsten.
"The way we've differentiated ourselves is to focus on the electrification thesis," he said.
"Electrifying the Yukon will unlock not only Casino in terms of being a green mine, Rio [Tinto] has a toe-hold position, along with Mitsubishi, it'll also unlock the eastern part of the Yukon for Fireweed, the other critical minerals associated, their zinc and their tungsten, so that's really important to us, not only picking companies but picking themes."
[EDITOR'S NOTE: Travel and accommodation expenses were paid for by Invest Yukon.]
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