In mining, the law of the jungle is such that the majors are at the top of the pecking order and junior exploration companies tend to follow the pack trying to survive.
While being far from an ‘anything goes’ environment, the code of survival in the mining jungle refers to a hierarchy of superiority, brute force, and self-interest in the struggle for survival.
"I know companies keep files on every other company that they’d like to own one day, and if a price hits a certain level, or maybe they start to run out of money bang, door flies open, takeover bid happens, and off we go.”
Deal activity aside, Morrow suggests that overall, there has been a lack of capital investment in larger projects. Despite the well-documented global need for certain raw materials and minerals such as copper, battery metals, and critical minerals, the sector hasn’t invested enough for the future.
While this applies across quite a few other non-mining industries, Morrow adds that a lack of investment in new capacity and exploration will cause shortages down the track although it will push prices up and make investment in these areas profitable – “if you pick the right one”.
“There just hasn’t been enough of it and so it may not happen this year, it may happen next year, but the shortages will come for the most in demand metals, like copper of course, is a bit of a standout in that department.”
Cheers
These are only my thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.
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