2023 was tough for junior miners, but Peter Grandich of Peter Grandich & Co. sees better times ahead.
“Until the last days of December it was a year you would truly want to forget,” he told the Investing News Network in an interview. “But fortunately enough as we enter the new year that looks to be behind us.”
That said, he believes exploration companies are operating in a much different world than they were 20 or 30 years ago.
For one thing, they’re facing stiff competition from other speculative investments, like cryptocurrencies. For another, the number of mining-friendly jurisdictions is shrinking due to resource nationalism and other factors.
“It’s the best of times, but it’s also still some of the worst of times in the junior market,” he said. “And that’s why I don’t think — even though we’re off the bottom — I don’t think it’s going to be a rocket ship straight up. Because we’re going to have to go through an M&A period where there’s some consolidation in the industry. And that’ll also be in the smaller producers merging together to become bigger ones. That’s the only way they can attract institutional investors now.”
Looking at gold, Grandich said drivers for the yellow metal continue to line up — he thinks it will easily break through US$2,100 per ounce in the first quarter of the year, and sees US$2,500 as “very viable” in the next year or two.
Grandich also remains bullish on uranium, saying that Cameco (TSX:CCO,NYSE:CCJ) is still his core holding. He’s less interested in juniors, and said they need a sustained uranium price of over US$100 per pound to gain momentum.
“As of now, I really have felt that you needed to stay with the few main producers, and of course the companies that actually physically buy ownership of (uranium). Because some of these have doubled and tripled already,” he said.
When it comes to copper, Grandich said it’s understandable why it’s seen a slowdown. In his view, once it passes the US$4 per pound mark the sector will see increased momentum once again.
Watch the interview above for more from Grandich on gold, uranium and copper, as well as the overall market.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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