Kai Hoffman: Flow-through Financings Could "Save Your Investment Bacon"

TL;DR

2018 was a challenging year for junior mining, with decreased financing and market volatility. Uncertainty in macro and micro-level factors, such as trade talks and regulatory issues, affected the industry. Flow-through financing and Canadian projects may provide stability for investors in the resource space.

Transcript

network and here today with me is Chi Minh CEO of soar Financial Group thanks so much for joining me today thanks for having charlie great and it's it's the last day of PDAC were here can you tell me how the conference was for you how did the mood feel what was it like it was exhausting and you know fourth day and everybody's had a long nights and ... Read More

Key Insights

• ❓ 2018 was a challenging year for junior mining companies, with decreased financing and market volatility.
• 👾 Flow-through financing and Canadian projects have provided some stability in the resource space.
• 🎚️ Uncertainty at the macro level, particularly trade talks, has affected investor sentiment and financing.
• 🥺 Factors like ongoing mergers and acquisitions have caused a vacuum in the industry, leading to a slower start in financing activity for 2019.
• 👾 The funding discrepancy between the pod space and mining highlights the speculative nature of the resource industry compared to other sectors.
• 👾 The return of generalist investors to the resource space would indicate increased interest and potential growth.
• 🙈 Battery metals saw a slowdown in funding, with gold, copper, and nickel remaining dominant commodities.

Questions & Answers

Q: How does 2018 compare to previous years in terms of financing in the resource space?

2018 was a difficult year for junior mining, with a decrease in financing and a drop in market cap and net worth for companies in the industry. The number of deals was also significantly reduced.

Q: How did exploration activity fare in light of the challenging financing environment?

Despite the overall decline in financing, exploration activity has remained steady, largely due to flow-through financing, which has been especially beneficial for Canadian projects.

Q: What factors have influenced financing in the resource space?

Uncertainty at the macro level, such as trade talks between the US and China, has created market volatility and affected financing. Additionally, regulatory issues, like ongoing mergers and acquisitions, have also impacted investor sentiment and activity.

Q: Is there a need for generalist investors to return to the resource space?

Yes, the industry would benefit from the participation of generalist investors. While there have been some positive signs, such as generalist calls to major companies like Kirkland Lake Gold, there is still a need for broader investor interest.

Summary & Key Takeaways

• 2018 witnessed a decline in financing for junior mining companies, with fewer deals and a drop in market cap and net worth.

• Exploration activity remained somewhat stable, thanks to flow-through financing, especially in Canadian projects.

• Uncertainty at the macro level, including trade talks and regulatory issues, has influenced financing in the resource space, while micro-level factors like ongoing mergers and acquisitions have also impacted activity.