An upbeat Giorgetta was formally opening Diggers this morning in its 25th year.
“Have we seen the bottom of the commodities prices?” he asked.
“Let’s hope so, but most of you here know that hope is not a strategy.”
Giorgetta noted that there had been a reasonably strong uptick in commodity prices over the past month, which he hoped would continue.
“Once again Diggers and Dealers will no doubt highlight numerous opportunities for investors,” he said.
“In the 2015-2016 financial year, the ASX index remained virtually unchanged at around the 5500 mark.
“And yet, if you invested $A1000 in each of the companies that presented at Diggers and Dealers last year, you would be showing a return of 39%.
“Even though investing in exploration companies is risky, the rewards, if you get it right, can be phenomenal.
“There are many examples, including some of the companies presenting at this forum, of share prices increasing by more than 1000% over the last 12 months. “Your challenge this year is to identify the next ten-bagger.”
Giorgetta said resources companies were better-placed today to benefit from an improvement in conditions.
“In the last few years, companies have relentlessly focused on cost cutting and productivity, and have achieved remarkable results,” he said.
“The cost structures inherited from the boom period have become a thing of the past, and our operating costs are now internationally competitive.
“We are now seeing companies with fewer members on their board, leaner and more hands-on staff, and, yes, executives are often flying at the back of planes.”
He urged companies to innovate, and to continue exploring.
Diggers will run until Wednesday.
