Capital will return to mining

Investment bankers are certain that when the risks subside, more money will flow into the mining sector again. The current obstacles are growing fears of recession and inflation figures in the USA that are higher than expected. Financing on the Toronto Stock Exchange has fallen by around 60 to 70 percent year-on-year. Despite high commodity prices, this is due to risk aversion among investors. Nearly nine percent inflation in the U.S., with these figures being released on June 10, has spooked many after all. But the period of calm will also come to an end. Producing companies have to spend more money on wages, goods and other costs due to inflation. These cost increases are currently creating some headwinds for the mining sector. Commodity price risks have now been joined by inflation risks.

On the other hand, electrification and decarbonization and thus the need for sufficient quantities of raw materials have entered people’s minds. In Canada in particular, with its wealth of resources, risk capital for the mining sector should therefore increase. After all, an impending shortage in the supply of certain metals is not desirable. Mining could be given a new emphasis, and then more money would come into this important sector again.

A best positioned and producing company is Sibanye-Stillwater – https://www.youtube.com/watch?v=aVLvztbnzUw -. Platinum metals and gold as well as battery metals are the focus of the company. The projects are located in the USA and in Africa.

In the Nordic Arctic, Mawson Gold – https://www.youtube.com/watch?v=CV7pfLIZadQ  – is looking after its Rajapalot gold-cobalt project (Finland). In addition, there are rights to a gold project in Sweden and interests in gold fields in Australia.

Current corporate information and press releases from Mawson Gold (- https://www.resource-capital.ch/en/companies/mawson-gold-ltd/ -) and Sibanye-Stillwater (- https://www.resource-capital.ch/en/companies/sibanye-stillwater-ltd/ -).

In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.

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