- AustraliaNorth AmericaWorld
Investing News NetworkYour trusted source for investing success
- Lithium Outlook
- Oil and Gas Outlook
- Gold Outlook Report
- Uranium Outlook
- Rare Earths Outlook
- All Outlook Reports
- Top Generative AI Stocks
- Top EV Stocks
- Biggest AI Companies
- Biggest Blockchain Stocks
- Biggest Cryptocurrency-mining Stocks
- Biggest Cybersecurity Companies
- Biggest Robotics Companies
- Biggest Social Media Companies
- Biggest Technology ETFs
- Artificial Intellgience ETFs
- Robotics ETFs
- Canadian Cryptocurrency ETFs
- Artificial Intelligence Outlook
- EV Outlook
- Cleantech Outlook
- Crypto Outlook
- Tech Outlook
- All Market Outlook Reports
- Cannabis Weekly Round-Up
- Top Alzheimer's Treatment Stocks
- Top Biotech Stocks
- Top Plant-based Food Stocks
- Biggest Cannabis Stocks
- Biggest Pharma Stocks
- Longevity Stocks to Watch
- Psychedelics Stocks to Watch
- Top Cobalt Stocks
- Small Biotech ETFs to Watch
- Top Life Science ETFs
- Biggest Pharmaceutical ETFs
- Life Science Outlook
- Biotech Outlook
- Cannabis Outlook
- Pharma Outlook
- Psychedelics Outlook
- All Market Outlook Reports
EY Expert: Energy Transition Bringing New Faces to Mining, but Challenges Remain
At PDAC, a mining expert from EY told INN he's seeing a shift in the type of investors who are interested in mining opportunities.
Discussions around the energy transition are bringing a new crop of investors into mining.
As the biggest event in the resource space returned in full force, an expert from EY told the Investing News Network (INN) he's encouraged by the changing face of the mining investment storyline.
On the sidelines of year's instalment of the annual Prospectors & Developers Association of Canada convention, known as PDAC, the mining sector expert also shared his thoughts on current challenges in the market.
Changing face of the mining industry
Theo Yameogo, mining and metals leader at EY Americas and Canada, told INN that a younger and more diverse class of investors has a real recognition of the importance of new sources of energy.
The expert said he’s curious to see the relationship develop between these fresh mining investors and established faces in the space who have long been banging on the drum of support for the industry.
“This is going to be quite an interesting dynamic going forward,” Yameogo said. “Because mining always felt that it was a misunderstood sector for the value it was bringing to society.”
Yameogo said the resource sector could end up seeing a change to its public image thanks to the emergence of new members of the industry, both at the company level and among investors.
Costs rising, new talent tough to find
Yameogo told INN the team at EY has also been closely monitoring the cost of operations in the sector.
“We're going into a supercycle,” he said. "We know that when we go into a supercycle, people spend a lot and then they don't pay attention to the volume of the profit." A supercycle is marked by a "prolonged period of rising prices and investment in supply by commodity producers" after strong rises in demand.
Aside from that, rising inflation has ballooned costs for virtually every industry, leaving mining companies facing challenges when it comes to the cost of doing business.
"You can anticipate that inflation may actually drive cost overruns of major capital projects, which is a problem and may impact profitability of projects that we're building right now,” the expert said.
Yameogo also said regions that are struggling with economic pressures may start to ask more of mining companies. “With inflation comes a discussion around geopolitics,” he said, noting that this is already starting to happen.
At the same time, mining companies are dealing with the problem of an aging pool of talent; they need to attract new workers to the space while continuing to monitor their costs.
When asked about other challenges affecting mining corporations, the EY expert told INN that commodity price uncertainty is a significant struggle for the space, and can affect company plans moving forward.
“You're changing your cost base, and trying to make sure that you can still operate profitably,” he said.
Investor takeaway
Critical minerals and battery metals saw significant interest at PDAC, and Yameogo told INN it may seem as though these segments are the new children in the mining family. He expects more buzz to build in these markets, but cautioned investors to be careful as it is “not going to be just straightforward" to approach these spaces.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Bryan Mc Govern, 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.
- Lithium Market Forecast: Top Trends That Will Affect Lithium in 2023 ›
- Cobalt Market Forecast: Top Trends That Will Affect Cobalt in 2023 ›
- Graphite Market Forecast: Top Trends That Will Affect Graphite in 2023 ›
The Beginner’s Guide to Investing in Battery Metals
Ready to invest in battery metals? Our beginner's guide makes it simple to get started
Download your investing guide today.
Learn About Exciting Investing Opportunities in the Battery Metals Sector
Your Newsletter Preferences
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.
Bryan is a Senior Editor with INN. After graduating from the Langara journalism program he did some freelance reporting with community newspapers in British Columbia. He initially wrote about the life science space for INN and now spends his time covering the marijuana market, from Canadian LPs to US-based companies, and the impact of this sector on investors.
Learn about our editorial policies.