Top Stories This Week: Gold Awaits Fed Meeting, Who's Funding Juniors Right Now?
Financing for juniors was a key topic at this year's AME Roundup, with experts highlighting the importance of alternative sources of cash.
The gold price remained firmly above US$1,900 per ounce this week, continuing an upward trajectory that started around the beginning of November. By Friday's (January 27) close, the yellow metal was at about US$1,927 per ounce.
Market participants were waiting for the latest PCE Price Index data, which looks at personal consumption expenditures — in other words, the prices that people in the US pay for goods and services. Released at the end of the week, the new numbers show that core PCE, which excludes food and energy, rose 4.4 percent year-on-year in December and 0.3 percent month-on-month.
Attention is now shifting to the US Federal Reserve's next meeting, which is scheduled to run from January 31 to February 1. Speculation is rife that the central bank will hike by only a quarter of a percentage point, but for now we'll have to wait and see.
Experts focus on financing for juniors at Roundup
This week I had the chance to attend the AME Roundup in Vancouver. This event is described as being "by explorers for explorers," and it brings together geoscientists and prospectors, as well as financiers, investors and other key industry players.
Financing was a topic that received a lot of attention, and for good reason — 2022's volatility made it a tough year for many juniors to raise money. In a presentation, mining finance executive Daniella Dimitrov highlighted how important it's becoming to source capital from different areas, including royalty and streaming companies and alternative debt providers.
Cassie Boggs of Hecla Mining Company (NYSE:HL) also spoke about the financing challenge for juniors, saying that while the world is finally recognizing the importance of mining, new sources of cash are becoming increasingly necessary. She mentioned the rise of family offices, and also said more mid-tier miners are looking to work with juniors. Aside from that, supply chain security initiatives are boosting government support for some commodities.
Well-known investor and speculator Rick Rule had his own tips for juniors looking for funds. He said he's actively looking to write checks — but only for companies that can get through his extensive vetting process. Among other requirements, he wants to see management teams that can explain what questions they would address with the money he might provide.
INN gearing up for VRIC
With Roundup in the books, the INN team is now gearing up for the Vancouver Resource Investment Conference, scheduled to run from January 29 to 30. I'll be there interviewing resource sector favorites like Rick Rule, Ross Beaty, Lobo Tiggre and more — if you have any questions you want me to ask, please send me an email at firstname.lastname@example.org.
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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.
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