'We're right before the turning point': Widdup

6th December 2019
Resources Rising Stars

Hedley Widdup believes the events of 2019 are setting mining stocks up for another strong run (reports MiningNews).

Despite this year feeling like another tough one for many, it has delivered a number of discoveries.

"Discoveries are exciting because they come from nowhere," Widdup told the Resources Rising Stars Summer Series in Sydney today.

"2019 has seen a number of discoveries come to market - some still have a question mark over them."

This year, discoveries have included Rio Tinto's Winu, Newcrest Mining/Greatland Gold's Havieron, Alkane Resources' Boda, Stavely Minerals' Thursday's Gossan and, if the rumours are true, Legend Mining's Area D.

Widdup said the mining boom of the 1980s featured numerous discoveries, and only modest commodity price performance.

"To the extent that I think optimism around exploration was a very important driver of market sentiment," he said.

While Widdup noted discoveries were company-specific, the wave of optimism that can come from them is infectious, sparking nearology rushes and allowing juniors to raise money.

Off only one hole, Alkane's Boda hit has sparked a rush of companies to New South Wales' Lachlan Fold Belt.

The re-emergence of M&A - particularly in gold - is also exciting, according to Widdup.

"It's really, really important as a driver," he said.

"There is nothing tells the equity market ‘go buy some mining stocks' than when one miner buys another one. And when they start paying a premium it tells you that they might not be the only one with interest."

Read more at https://www.miningnews.net/events-coverage/news/1376993/%E2%80%98we%E2%80%99re-right-before-the-turning-point%E2%80%99-widdup

 

Image: Boardroom Media

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