Mining Companies Need To Focus On Building Assets - Revival Gold
Kitco News - The mining sector continues to face a dearth of investor interest, but gold mining companies need to focus on what is within their control, according to one junior explorer executive.
In a recent interview with Kitco News, Hugh Agro, president and CEO of Revival Gold (TSX.V: RVG) said that companies need to build out new deposits and focus on critical market fundamentals and eventually investors will come back into the marketplace.
He explained that the mining sector is at a critical juncture as the supply of quality gold projects start to decline and major gold producers see a drop in production. He added that the expected imbalance in supply and demand will eventually drive gold prices and mining shares higher.
“There is a deficit in projects to feed the growing appetite for metals production,” he said. “At current rates of discovery we are generating about 10 million ounces of gold a year, but at current rates of production, we are consuming about 110 million ounces of gold. There is a big disconnect in the industry.
In the current market environment, Agro said that junior explorers could be the biggest beneficiaries as major producers need to find projects to add to their dwindling production.
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