VIDEO - Jeff Swinoga: We Need More Risk Capital in the Mining Sector
Jeff Swinoga of EY discusses current trends in the resource space, including whether money is available and trends to watch this year.
Recent mega mergers in the gold space have sparked conversation about what the activity means for the sector and what may happen moving forward.
Jeff Swinoga, EY Canada mining and metals leader, shared his thoughts at the recent Prospectors & Developers Association of Canada (PDAC) convention.
In his opinion, these major deals are positive as they’ve sparked interest in the resource industry and are likely to shake up the plans of mid-tier and junior miners.
“I think the mid tiers [are] going to be focused more on productivity and […] their existing operations,” said Swinoga, suggesting that executives at these companies will be taking the time now to make sure their projects and mines are running smoothly.
He added, “I think they’re going to hold back and wait until some of the majors figure out what they’re doing […] and then figure out how they want to proceed after that.”
In terms of juniors, which he described as the lifeblood of the sector, Swinoga said he hopes to see them have more success in attracting capital for exploration.
“If you look at some of the investment dollars […] in exploration in particular, it’s going more into existing mine site exploration as opposed to grassroots exploration,” he said, noting that this trend is impeding new discoveries, which have been scarce in recent years.
“I’m really hopeful that juniors will continue to explore, find the next deposit and we create excitement that way too,” said Swinoga.
Watch the interview above for more from Swinoga on M&A activity, how technology is impacting the mining space and more. You can also click here to view our full PDAC 2019 interview playlist on YouTube.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.