(Kitco News) - Canada's resource sector is facing significant headwinds, struggling with lengthy permitting processes, government policies, and global competition, even as other nations like Saudi Arabia emerge as key players in the mining industry, according to Warren Irwin, President & CIO of Rosseau Asset Management.
Irwin points to permitting delays as a critical issue stifling growth in Canada. "Permitting timelines are monstrously long," Irwin told Kitco Mining on the sidelines of the Vancouver Resource Investment Conference. He highlighted the broader economic impact, noting, "our GDP per capita during the entire nine years Trudeau has been in office has not budged... We need to get back to business."
Irwin criticized the Canadian government’s intervention in the Solaris Resources deal, where an investment from Zijin Mining was blocked. “That was a complete and total embarrassment,” Irwin said. “They are intentionally destroying the Canadian mining business.”
He argued that such actions deter investment and push Canadian companies to seek opportunities elsewhere.
Addressing First Nations involvement in resource development, Irwin acknowledged the varying levels of cooperation across Canada. He emphasized the need for a nuanced approach, stating that "making a blanket statement about working with the First Nations is... tricky, you can't do that.” Irwin suggested that "cajoling them and working with them and just showing them the benefits" is a more effective strategy than forcing participation.
Irwin noted Saudi Arabia's growing influence in the mining sector. He recounted advising Saudi officials to focus on becoming a regional hub for mining activity. Irwin contrasted this with Canada, where he sees destructive government policies hindering the industry.
Market Dynamics and Investment Strategy
Looking at the broader market, Irwin acknowledged the strong competition from crypto and tech sectors. "Why invest in junior resource stocks when, the last 12 months you've got a fantastic return on the S&P 500?"
He advised focusing on "alpha," or company-specific opportunities, that can perform well regardless of overall market trends.
Gold and Copper Outlook
Irwin expressed a bullish long-term outlook on gold due to the continuous devaluation of fiat currencies. “Gold is going up and up and up without a doubt because…politicians will continue to print money and devalue the fiat currencies,” he stated, adding that gold would hit $5,000.
Regarding copper, Irwin tempered expectations tied to the EV revolution, suggesting that copper’s price will largely depend on overall global economic activity.
Special thanks to our sponsor Snowline Gold Corp for making this coverage possible. Visit https://snowlinegold.com/ today.
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