Sunday, 3 February 2013

Pierre Lassonde at AME-BC and interview

Pierre Lassonde speaking recently at the AME BC Roundup, and also interviewed on KWN......

AME Presentation summary at Mineweb

Re-iterating much of the discussion and presentation seen at Denver 2012

Looking for a paradigm shift in exploration techniques to find new large deposits at better grades.

Market closed for junior financing, valuations cheapest ever.
Opportunities for Franco Nevada.
Reality of miners cutting back marginal production, re-emphasis on profitability.
Expects a range-bound gold price for another 6-12 months and then a new move to $2400.
Eventual China led mania for gold.
KWN Interview

A chart from Lassonde's  Denver presentation showing the low discovery rate despite increased gold prices.

Rick Rule, John Kaiser and Brent Cook have also all emphasised the move to a discovery cycle from the emphasis, up to now in gold's bull market, on bringing more and more marginal, reworked, low grade deposits to production.
These have appeared economic as projects were approved but allowed cost structures to increase across the industry. Cost inflation in capex and production has then caught up with too many of these marginal projects harming industry profitability and stock performances. High quality discovery can offer miners extremely profitable developments. The Junior sector is focussed on exploration and discovery, to a degree the majors have "outsourced" this function.

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