Thursday, 20 March 2014

Eric Coffin - A New Resource Bull

Eric Coffin of Hard Rock Advisory is one of the more experienced and respected voices in the sector.

Its game on in the resource space at long last.  There are plenty of market players that are still cautious but that is how it should be early in a bull market.  Technically, we need to be 20% off the bottom for a Bull to be official but it seems very unlikely we won’t get there now.............The elevated rate of financings continues.  Most of it is still going to producers or companies drilling existing exploration successes. More important will be fund raising for new ideas but we are not quite there yet.......... Traders are starting to bid up the stronger exploration stories and that is the time to be adding names to the list.  It looks like we finally have a bull market to work with after three years of market pain.  Better late than never and it did feel like never for a while there.........I’m still waiting for the turnover of stories and new projects that mark the start of many cycles...............There was a lot of evidence of money looking for a way back into the sector both at the PDAC and at the Subscriber Summit.   There were a number of private equity and European fund representatives at both events.  ....................On the more traditional brokerage side activity has continued with a number of companies announcing financings in the $10 million plus range, most of them bought deals.  That indicates new institutional interest though it’s still focused on the top of the food chain.  Trading has begun to improve for companies with discoveries but no resources yet and others with good targets and money to spend........On the gold side I think we’ve got the “all clear”.  Pick weak days but if you have been waiting to accumulate producers and those with viable resources and good exploration targets I wouldn’t wait longer.  As long as Ukraine doesn’t blow up I see the rally continuing through spring. 
The article above follows on from his address to his subscriber summit in Toronto "You can come out now"

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