How Junior Miners Can Survive This Bear Market

Benjamin Cox |


Benjamin starts off the video by speaking to how the industry seems to be very negative at the moment, but that there is a silver-lining to every recession, even this one. In the current industry recession, majors know how to draw the line in the sand and kill projects. Juniors on the other hand, are not able to efficiently kill projects. This has led to too many poor projects getting funding, and actually good projects not receiving proper funding, which has led them not being able to develop properly. This has led to what Benjamin calls “Pipeline Interruptus,” which is going to cause a gap in supply from 2016-2020 in certain commodities. Benjamin calls for Juniors to do one of two things: develop projects that are material to majors or develop a project that is material to themselves. Investors should buy rational majors or look for juniors that are well structured that have assets that make sense. All in all though, demand is going to far surpass supply due to not enough investment in the supply chain.

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Comments

Emerging Growth

Viking Energy Group Inc

Viking Investments Group Inc provides professional advisory and consulting services to companies undergoing or anticipating periods of rapid growth, change or ownership transition.

Private Markets

The Green Organic Dutchman

The Green Organic Dutchman Ltd. ("TGOD") produces farm grown, organic cannabis for medical use. The company grows its high quality organic cannabis in small batches using craft growing, all natural…

Voleo

Voleo is a free download that allows you to form investment clubs with your friends, family, colleagues, classmates, teammates…basically anyone you know and trust. Invest and manage a stock portfolio…