At the recent Canadian Investor Conference in Vancouver, Brent Cook of Exploration Insights presented his views on the state of the market and answered questions about a number of mining companies.
The Investing News Network (INN) was able to speak with Cook to get a bit more insight into where he thinks the industry is headed. For starters, Cook said that he sees the market continuing to bounce along the bottom, explaining that he anticipates mining companies capitulating one by one, rather than all at once. Overall, Cook suggested that "this is the time to start accumulating those few stocks that makes sense." He spoke a bit more about what to look for specifically in a mining stock and about which companies he's watching right now. Check out the interview below for more of what he had to say. INN: Investors are still waiting for a change in the market. Should they stop waiting? Is this the new status quo? BC: Stop waiting? No, I mean we're all waiting. Is this the status quo? I think it is for awhile. I think what we're looking at is fairly stable metals prices. We're looking at a period of time when there's not much new money coming into this market, the mining market. But I think we're also looking at a period of time bouncing along the bottom where this is the time to start accumulating those few stocks that makes sense. INN: What's it going to take to spark some change in the market? BC: You know, I don't know. I don't think it's going to be rising metals prices, at least not for a year or two. I don't think it's going to be a discovery. I don't think there's going to be new money coming into it. I think what's really going to happen is that down the road, we are not finding enough new deposits to replace what's being mined, it's just not happened. When we find something, it's taking 20 years to put these big projects into production. So even if we find a new deposit there is 20 years maybe before going into production. What that tells me is the major mining companies right now are lowering all their costs, all-in sustaining costs, but they're not sustaining the business. So next year or the year after they're going to wake up and have to go out and buy the very few projects that work. And that's what I'm looking for.