Hot Chili board member Stephen Quin speaks to Proactive's Angela Harmantas at PDAC 2024
The annual Prospectors & Developers Association of Canada (PDAC) conference, a cornerstone event for the mining industry, saw a wave of optimism and resilience among participants, despite ongoing market volatility.
Representatives from various sectors within the industry shared their perspectives and insights, highlighting both challenges and opportunities shaping the sector's outlook for the year ahead.
Azimut Exploration Inc (TSX-V:AZM, OTCQX:AZMTF), a prominent player in the mining industry, echoed sentiments of confidence and optimism, emphasizing strong support from shareholders and partners.
“There are still strong believers in the mining industry. On our side, we are very optimistic,” CEO Jean-Marc Lulin told Proactive.
“We have many ideas in mind which must be developed, and these ideas will be developed on the ground. In 2024, for us, there is no change.”
Geologists, perennial optimists within the industry, found cause for hope amidst the backdrop of a $2,100 gold price.
Some CEOs highlighted the importance of collaboration at events like PDAC in fostering solutions and positive sentiment among industry stakeholders.
“There's always optimism among geologists. The $2,100 gold price helps," Western Exploration Inc (TSX-V:WEX, OTCQX:WEXPF) CEO Darcy Marud said. “Coming together here builds solutions and positive sentiment.”
Others drew parallels between the current market conditions and the optimism witnessed in 2015, particularly noting the promising developments in the gold and silver markets. With gold maintaining its price above $2000 and signs of tightness in the physical silver market, there is anticipation that silver may soon follow gold's lead and outperform in percentage terms.
“The recent price move in gold and silver has been less talked about, but it reminds me of the optimism seen in 2015,” Minaurum Gold Inc (TSX-V:MGG, OTCQX:MMRGF) CEO Darcy Rader told Proactive.
“Silver usually outperforms gold in percentage terms, and the physical market's tightness, along with gold's breakout, suggests silver could soon follow.”
The evolving dynamics of the electric vehicle (EV) market were also a focal point of discussions at PDAC, especially in light of several recent offtake deals signed between developers and battery manufacturers.
Critical Elements Lithium Corp (TSX-V:CRE, OTCQX:CRECF) highlighted the resilience of the global EV market, buoyed by growth in regions such as China, despite headwinds in North America and Europe.
“The lithium supply side is experiencing destocking, particularly in China, indicating a volatile but attentive market for lithium,” Critical Elements chair Eric Zaunscherb said.
Amidst the challenges, optimism remained palpable among attendees. Most executives expressed confidence in the sector's prospects for the year ahead, buoyed by the enthusiasm observed at PDAC despite stocks trading at all-time lows.
The CEO of Prismo Metals Inc (CSE:PRIZ, OTCQB:PMOMF), Alain Lambert, told Proactive that the mood was “better than I've seen it in a while.”
“It's been great that gold has maintained prices over $2,000. Walking the floor, there’s a lot of people here, a lot of enthusiasm. So, we're quite optimistic about prospects for this year in the sector as a whole.”