Rule tips exploration boom, rational M&A

HEAVYWEIGHT US resources investor Rick Rule says unloved commodity markets are “constructive for an exploration boom” and the minerals exploration space, in particular, is ripe for a sustained bull market that yields big investment windfalls on companies that show they can deliver successful “research and development … and mergers and acquisitions”.

Rule tips exploration boom, rational M&A Rule tips exploration boom, rational M&A Rule tips exploration boom, rational M&A Rule tips exploration boom, rational M&A Rule tips exploration boom, rational M&A

The Sprott US Holdings president told a large audience of predominantly retail investors at this week's Vancouver Resource Investment Conference industry project pipelines devoid of high-quality deposits and emerging projects had left many companies – major, mid-tier and small – reliant on higher metal prices to make older, recycled ‘assets', including numerous large, lower-grade resources, and properties with the right postcodes, economically attractive.

Markets starting to rediscover commodities after a lousy hangover from the downturn that followed the 2003-2011 mining boom had generally latched onto companies that had accumulated large resource positions, with the right commodities, and started pouring money into drilling on relatively sa...