PDAC 2017, Day 1: Notes from the Floor

The first day of this year’s Prospectors & Developers Association of Canada (PDAC) conference is now done, and by all accounts it was full to the brim.
Over 900 exhibitors and 22,000 attendees from 125 countries met on Sunday morning at the Metro Toronto Convention Center in Toronto to kick off the four-day conference.
If you weren’t able to make it to PDAC (or if you simply weren’t able to see everything that was on offer), don’t worry. The Investing News Network (INN) has put together a recap of the day’s highlights. Without further ado, here’s a quick look at what’s been going on PDAC.

One of the first presentations of the day was from Joe Mazumdar of Exploration Insights. He gave his thoughts on exploration-stage gold plays and recommended the company Nighthawk Gold (TSXV:NHK).

Joe Mazumdar says @Explor_Insights is looking for exploration-stage #gold plays – “M&A is really our exit strategy” #PDAC2017

— Resource Investing (@INN_Resource) March 5, 2017

In the afternoon, Brent Cook, also of Exploration Insights, gave his own presentation, highlighting that gold reserves are dwindling. He said gold juniors “are the place to be, but do your research.”

#Gold reserves are shrinking and not being replaced, says Brent Cook of @Explor_Insights – that’s good news for juniors #PDAC2017

— Resource Investing (@INN_Resource) March 5, 2017

Allan Barry Laboucan of Allan Barry Reports also presented on Sunday, giving a number of stock picks, including: Tudor Gold (TSXV:TUD), Wolfden Resources (TSXV:WLF) and Sabina Gold and Silver (TSX:SBB). Laboucan is also CEO of Alset Energy (TSXV:ION) and Advance Gold (TSXV:AAX).

“The project is so high quality that I just can’t ignore it,” says Allan Barry of Sabina Gold and Silver #PDAC2017

— Resource Investing (@INN_Resource) March 5, 2017

Later in the day, John Kaiser of Kaiser Research said in his talk that it’s clear that discovery exploration is back. He also shared one of his favorite stocks, Scandium International (TSX:SCY), and said “cobalt is the next bubble metal.”
Commenting on zinc, he said that the “wildcard is the sustainability of Chinese supply.” Thoughts he shared about other commodities include:

“The gold price today is a wash from the past,” says John Kaiser. #PDAC2017

— Resource Investing (@INN_Resource) March 5, 2017

John Kaiser: bearish in the short term on uranium but may see a comeback in the next few years. #PDAC2017

— Resource Investing (@INN_Resource) March 5, 2017

Louis James, editor of the International Speculator, was also at PDAC this year. He shared insights on what he described as “the golden runway,” the idea that after a company reaches the decision to build a mine it will probably build that mine, and will most likely see a big share price rise.

The average gain of a successful mine builder when ramping up to production is 101%, says Louis James #PDAC2017

— Resource Investing (@INN_Resource) March 5, 2017

Only 1 in 300 discoveries becomes a mine, says Louis James. But 92 out of 100 mines get built after a production decision is made #PDAC2017

— Resource Investing (@INN_Resource) March 5, 2017

Later in the day, Mercenary Geologist Mickey Fulp shared his research with attendees. He said peaks in the junior resource sector seem to happen in years ending in seven.

Mickey Fulp @mercenarygeo says commodity bull and bear makers run about 4-6 years #PDAC2017

— Resource Investing (@INN_Resource) March 5, 2017

All active juniors have a double between their 52-week low and 52-week high, says @mercenarygeo; the challenge is finding the low #PDAC2017

— Resource Investing (@INN_Resource) March 5, 2017

In the afternoon, Marin Katusa of Katusa Research gave a wide-ranging talk where he mentioned a couple of his stock picks, Skyharbour Resources (TSXV:SYH) and Uranium Energy (NYSEMKT:UEC).
Later on, Mark Cutifani, CEO of Anglo American (LSE:AAL), provided some tips on how companies can survive in tough times. His three main points were: companies should contribute to the communities surrounding their projects, adapt and innovate and be resilient and generate returns.

“There are no bad commodities, there are only bad projects,” says Mark Cutifani of @AngloAmerican #PDAC2017

— Resource Investing (@INN_Resource) March 5, 2017

The afternoon also included commodity-specific talks. First off, Paul Robinson of CRU Group shared his forecast for the overall commodities space.

.@CRUGROUP expects 28 of the 36 commodities it tracks to increase in price this year; price increases will average 12% #PDAC2017

— Resource Investing (@INN_Resource) March 5, 2017

Nicholas Carter of UX Consulting spoke about uranium, commenting that last year uranium “had the honor of being the year’s worst commodity.” His spot price forecast for uranium is between $18 to $28 per pound in 2017.
Speaking about copper, Michael Schwartz, market research manager at Teck Resources (TSX:TECK.B,NYSE:TECK), said that after 2019, “there isn’t enough copper production in the pipeline to meet even the lowest-case demand scenario.”
Another high note was a zinc presentation from Andrew Thomas, senior analyst – zinc markets at Wood Mackenzie.

.@WoodMackenzie is calling for a #zinc price of $3,200 per tonne by the end of 2017 and a cyclical peak of $4,000 next year #PDAC2017

— Resource Investing (@INN_Resource) March 5, 2017

Finally, Rick Rule of Sprott US Holdings shared some of his thoughts on the resource market.

Rick Rule says that if a market is up 100%, it’s 50% less attractive. #PDAC2017

— Resource Investing (@INN_Resource) March 5, 2017

On ETFS: Rick Rule says by the time you feel good about them they’re probably over. #PDAC2017

— Resource Investing (@INN_Resource) March 5, 2017

Before wrapping up the day, the INN editorial team visited the PDAC media reception at the Fairmont Royal York Hotel.

The @INN_Editorial crew are checking out the media reception at the Fairmont Royal York Hotel #PDAC2017 pic.twitter.com/SYlwY0YY3A

— Resource Investing (@INN_Resource) March 5, 2017

Canada’s Natural Resources Minister Jim Carr was present and made a big announcement.

Natural Resources Minister Jim Carr announces proposed extension to Canada’s 15% mineral exploration tax credit #PDAC2017

— Resource Investing (@INN_Resource) March 5, 2017

If you’ll be at PDAC on Monday or Tuesday, take a look at our overview of things you should know. And if you’re active on Twitter or Instagram, be sure to use the hashtag #PDAC2017. You can also check out PDAC on Facebook and LinkedIn.
Don’t forget to follow us @INN_Resource for real-time news updates.
Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Alset Energy is a client of the Investing News Network. This article is not paid-for content.