How the pandemic is making governments “prominently”

0
97


Gold producers will have a lot of money at $ 1,700, which makes investing attractive to seniors, said newsletter editor Chen Lin.

Lin writes Chen Picks, who focuses on small-cap companies in the resource, biotechnology, and oil and gas sectors.

Lin said that with high gold prices, the big miners were doing well. Juniors are also starting to benefit.

“We are finally seeing some life in this area,” said Lin. “I am very happy to see that the pace of acquisition is starting to accelerate. Many big miners will face a production cliff in a few years, so they have to consolidate their pipeline. ”

Lin notes recent mergers and acquisitions, such as SSR’s acquisition of Alacer and the proposed Gold X-Guyana Goldfields-Gran Colombia merger. These actions build confidence in the sector, said Lin.

“I expect to see more takeovers and, hopefully, a bidding war. This will really set the juniors on fire. “

When asked about the companies he loves in space, he mentioned the Mongolian miner Steppe Gold.

“They have just started processing the ore, which contains very high grade ore from a heaped leech. They have two grams per ton, which is very high quality, so they will have a lot of cash flow to come, “said Lin.

Although mining has been disrupted by COVID-19 following mine closings in Mexico, South Africa and parts of Canada, the pandemic could have the effect of making countries more willing to mine mining.

Lin notes that countries like Thailand and the Philippines have seen their tourism industries decimated by COVID-19 restrictions. Governments are turning to other industries to keep their populations active.

“Governments are therefore increasingly pro-mining. It’s not like they like mining, but they like the jobs created by mining.

Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has done everything possible to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept guilt for loss and / or damage resulting from the use of this publication.

LEAVE A REPLY

Please enter your comment!
Please enter your name here