Ive Decided: Bear Market in Metals, But Bull Market in Mining Innovation

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Ive Decided: Bear Market in Metals, But Bull Market in Mining Innovation

  • Adem Tumerkan

    All of us can agree that the technology of Fracking revolutionized the oil industry and was highly disruptive to conventional oil companies (Saudi Arabia for example).  Coupled with low rates/cheap debt + $75> oil price + large amounts of shale oil potential, It turned the USA into a massive oil producer and also significantly reduced our imports and foreign reliability on a critical fossil fuel.

    But what has been done for mining? The prices of metals are crashing and the “low hanging fruit” are gone.
    One company I find extremely interesting with its potential to cut costs significantly for underground mining and also change how narrow vein mining is,
    is NIPPON DRAGON RESOURCES (TSXV: NIP.V; OTC: RCCMF). Here is an article I wrote about the company a few months back <—

    My thesis for long term is that with current mining managements being very old (not many young people go into the mining sector) and also with the signifcant drop in metal prices, changes need to be done for the sector.
    Diluting shareholders to temporarily be Loading up on cash a a producer or depleting precious reserves simply to cover basic costs/interest payments and hunker down until prices rise is not a way to generate value.
    Companies need to spend more on R&D to cut costs vertically since that is what the company controls, their own costs, relative to the actually commodity price, supply/demand.

    We need more disruptive technologies being created and implemented – does anyone know of any other innovative mining companies?

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