(Kitco News) - The mining market is still subdued despite "violent moves" higher by gold, said Kai Hoffmann, the CEO of Soar Financial.
On Monday Hoffmann spoke to Kitco Mining. Hoffmann is hosting Deutsche Goldmesse in Frankfurt, a two-day event kicking off May 3 that will showcase 30 resource companies. Some of the keynote speakers will be Brien Lundin, Lobo Tiggre and Jeff Clarke.
Hoffmann tracks resource financings through Oreninc. Hoffmann is surprised that mining equities are still subdued after copper has run up 20%, and gold has hit several all-time highs.
"It is still not as rosy as one might expect," said Hoffmann, who notes that the GDX, the gold miner index, is still down over a 12-month period.
"You would think with a gold price move this violent and copper recovering as nicely as it has that we should be trading much higher. Quite honestly, a lot of people I've spoken with —they've been positioned for 12 months for this breakout, and they're barely breaking even. Maybe they're in the money by 10%.
"There's no euphoria in this market. The generalist investor is still missing."
Hoffman notes that junior mining companies are still facing challenges in attracting investment. Late-stage development projects are attracting more attention. Gold projects are also gaining more favor.
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