Mining Stocks Are Coiled Springs With Plenty Of Unrealized Value And Catalysts To Drive Them Much Higher
For several months I have been doing deep dives into projects as I see a strong market for mining stocks building up. We have seen best in breed gold miners, like our top two picks for gold miners, Agnico Eagle and Alamos Gold, significantly outperforming the bullish move in gold.
Mergers and acquisitions have picked up in 2024, including with one of our other top picks Silvercrest Metals being taken over. Another bullish trend for the metals stocks is that miners are making strategic investments into smaller companies to help them advance their high-quality projects. All of this is sending the message that miners are making a lot of money and are opening up their wallets because they see opportunities and that metals prices are heading much higher.
2024 saw significant improvement in select companies at the top of the food chain, some improvement in the mid-tiers and developers, while the explorers are still just getting off the canvas.
I see plenty of reasons to be bullish on gold, silver and copper for 2025 and for many years afterward. I’m even more bullish on the stocks involved in these metals, which is where investors that position themselves into high-quality projects that are well promoted using digital marketing will see the best returns. Primarily because there is so much unrealized value in them.
During my 30 plus years in mining, I have never seen the metals so well positioned to go much higher, while the metals stocks are coiled springs like never before, and ready to go into a powerful bull market.
It was similar prior to the 2001 to 2011 metals bull market. Gold did well for a couple years before a bunch of the gold stocks took off. And this brought other metals and metals stocks along for the ride.
Back then the US dollar was significantly overvalued as were the Wall Street stocks. The big cap tech stocks had insane valuations like they do today, as did the S&P 500 stocks.
This time around the debt situation has gotten to an unsustainable situation due to the level of debt, the cost of servicing the debt and of course the massive spending by politicians.
Back then, there was a bubble in the Dotcom stocks that is just like what is happening today in Bitcoin and other crypto currencies.
The foundation for bullish action in metals and the metals stocks has never been better than it is today.
When doing the deep dives into projects, what I’m finding is that the geological models are not well understood, nor are their graphics, and most importantly how the gold, silver and copper are distributed in the system.
The reason these key factors are not well understood is due to how they are explained in news releases and corporate presentations. For much too long they have been written by geologists trying to impress other geologists or lawyers and accountants that present information like they are writing for lawyers and accountants. The primary audience for public mining stocks are investors, but they need to be the focus of corporate communications.
The same can be said for when companies do online interviews and presentations at mining conferences. They need to grab the attention of investors when it comes to how critical mining is for everything in our modern world, and the compelling arguments to be bullish on metals, plus, why investors should pay attention to their projects.
Miners, developers and explorers are in the treasure hunting business. And they could do a lot more to present the industry in that way. It is tremendously exciting to be drilling for buried treasures, but the industry doesn’t bring investors into the treasure hunting process like it could.
They need to do a better job of explaining their projects to generalist investors. Instead of using geological, legal and accounting jargon, they need to explain what the process of exploration means in a way that investors can appreciate.
Drilling is the lifeblood of the mining sector. It is how the majors find additional metals in their current mines and around them. Drilling is how the developers move their projects toward production and then keep them in production. Drilling is how the smaller miners increase their production. And it is how new discoveries are made and turned into important discoveries.
When I look at great presentations, written or in videos, I see common themes. The storyteller is great at using the drill core, geological models, assay results and images to do what I call make the data dance.
A lot of the work I have been doing behind the scenes for several months is talking to geologists and executives looking closely at their drilling results, geological models, geology and reading scientific papers. What I have found is a lot of unrealized value based on what companies have found with their exploration work and where that could take them.
All of the behind the scenes work I have been doing lately has got my exploration juices flowing in a big way. And it is the foundation for a new series of videos I will be presenting soon. I’m going to be using companies and their projects as case studies to put them under the microscope. I will present them individually and talk about their drilling, geological models and catalysts.
I’m finding a ton of compelling information that I’m super excited to present to my viewers. Stay tuned, you will be seeing more of these starting in the coming days and weeks.
We are at a seminal moment for the mining stocks, especially the best in breed miners, new mine developers with high-quality projects and explorers with important discoveries. One because gold, silver and copper are primed to go much higher, secondly because they have a lot of unrecognized value.
All the best,
Allan Barry Laboucan
