Categories: Base Metals / Energy / General Market Commentary / Precious Metals
Topics: General Base Metals / General Energy / General Market Commentary / General Precious Metals

Insights on the resource market with Brent Cook and Joe Mazumdar

Insights on the resource market with Brent Cook and Joe Mazumdar

In January of this year, I attended the Metals Investor Forum and heard a presentation entitled, Entering the Twilight Zone, given by Joe Mazumdar of Exploration Insights. Exploration Insights is a highly respected newsletter publication within the junior resource sector.

Brent Cook, the letter’s founder, is an economic geologist who has worked in the mining industry in a number of different roles. As an independent consultant, he provided advice to numerous mining companies around the world such as, Newmont Mining (Santa Fe), Freeport McMoran (Cyprus-Amax) and Rio Tinto Mining, just to name a few. Cook also worked for Rick Rule at Global Resource Investments, providing analysis and commentary on a host of different junior resource companies.

Exploration Insights added a key component to the team in 2015, with the addition of Joe Mazumdar. Previously, Mazumdar was a Senior Mining Analyst at both Canaccord Genuity and Haywood Securities. He has also worked for a number of mining companies over the course of his career, which include Newmont, IAMGOLD and Rio Tinto.

Entering the Twilight Zone
The title of Mazumdar’s presentation reflects where we stand in the current resource market, as most aren’t quite sure where we’re headed. One thing is for certain, however, the road ahead will be volatile as President Trump attempts to execute the promises he made during his campaign.

Brent Cook
Here are a few notes on what Mazumdar had to say about some of the metals. These comments are summarized from my notes, please don’t take them for verbatim. If you would like to watch the presentation, you can check it out here.

Copper – Days of inventory are dropping versus a rising real copper price. Mazumdar believes this is a real trend and that an event such as the 2013 Binghamton Canyon landslide disaster would certainly lead to a price spike.

Uranium – The supply overhang is still very large, it’s going to take a couple of years to unwind. Mazumdar believes that if you want to participate in the uranium sector now, buy a good uranium explorer, as most of the producers can’t make money at this U3O8 price.

Gold – The gold price is rising in all of the world’s major currencies, which is a very good sign for the future of gold, and a glimpse into how much uncertainty still exists in the market. Trump is expected to add $5 trillion to the American debt total, and real interest rates could stay negative; all of the makings of an inflationary environment, which would be great for gold.

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