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John Feneck of Feneck Consulting shared his thoughts on the health of the resource sector and junior miners he's watching right now.

John Feneck: Miners Have Faced Years of Pain, Now the Worst is

The mining sector has faced challenges in the last couple of years, especially on the junior side, but John Feneck, portfolio manager and consultant at Feneck Consulting, sees light at the end of the tunnel.

He noted that typically selloffs last from six to eight months in the mining sector, but the current rout has gone on for more than 24 months — this could create outsized gains for savvy investors if the trend continues.

"We're starting to see some real interest in the commodities sector in general, which is very exciting. We got some follow through yesterday and today," Feneck said on November 8. "We're starting to see some real momentum in our space, which is fantastic."

He's encouraged by signs that money managers are starting to look at the industry again, and said Q3's record central bank gold buying is also bullish. However, Feneck acknowledged that risks remain — although he doesn't think it will happen, he noted that some market watchers think gold could drop below US$1,560 per ounce, at which point US$1,500 would be around the corner.

"We need to see gold get back into that channel that it was in for months, US$1,750 to US$1,850," he said. "It was there for months — I want to see it get back there before I get too excited." In terms of silver, Feneck noted that it has "big resistance" from about US$22 to US$25 per ounce, and a breakthrough there would be encouraging.

He named a number of juniors he's watching right now, including Idaho Champion Gold Mines (CSE:ITKO,OTCQB:GLDRF), Thunder Mountain Gold (TSXV:THM,OTCQB:THMG), Silver X Mining (TSXV:AGX,OTCQB:AGXPF), Canadian Palladium Resources (CSE:BULL,OTCQB:DCNNF), Forum Energy Metals (TSXV:FMC,OTCQB:FDCFF) and Standard Uranium (TSXV:STND,OTCQB:STTDF).

"I think that the opportunity right now for the mining sector — whether it's juniors, mid-caps, large-caps — there's just so much opportunity in front of us over the next few weeks and months," Feneck said as the interview concluded. "I think the worst is really behind us as we look forward ... you want to look for certain things to hold, like gold at US$1,560, silver at US$16. If we see these things hold, then you've got to get more confident in your buying."

Watch the interview above for more from Feneck on the resource sector.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Forum Energy Metals is a client of the Investing News Network. This article is not paid-for content.

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.


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