(Kitco News) - John Feneck, founder of Feneck Consulting, likes uranium, copper and gold in 2024.
In mid-January Feneck spoke to Kitco Mining at the Vancouver Resource Investment Conference 2024.
Feneck said gold found a floor following the March 2023 banking crisis, and another one following the Hamas attack on Israel last October. News surrounding Taiwan is another geopolitical signpost for gold.
“There's always something going on geopolitically it seems, and that's why gold is attracting more money, globally, and so we think gold's in a great position,” he said, adding “we're not displeased with this $2,000 price. I don't care if it gets back down to $1900 or $1850 even, because we know that gold on the long-term chart still looks beautiful.”
For silver, Feneck sees resistance around the $26 an ounce level. “I think that will happen within six months, I really do, and that's why we've been accumulating a lot of silver juniors.”
He predicts the Federal Reserve will start cutting interest rates by quarter percentage points during the first six months of the year, “and see how things develop.”
In Feneck’s opinion, the momentum which carried uranium higher last year will continue into 2024. This could float the boats of small uranium companies whose prices are still depressed.
“We want to add more [names] because there's going to be a catchup trade in uranium equities to the spot price,” he said.
Feneck made an interesting comment regarding mining mergers and acquisitions (M&A). He said he frequently asks CEOs what kind of ownership they have in their capital structure that would avoid a takeover at such low commodity prices.
“We make to make sure that company will survive this period of time, when you've got vultures circling, right? And we don't want a 20 or 30% deal, we want a higher payday. That's what people invest in our sector for.”
Coverage of the Vancouver Resource Investment Conference 2024 was sponsored by Snowline Gold.