AME BC president says
Traditionally, summer is the most active exploration time; whether it involves drilling targets at advanced projects, taking rock samples, or flying airborne geophysics.
Since AME BC’s Mineral Exploration Roundup in January, we have witnessed an emerging sense of cautious optimism at many industry events this spring, particularly at the PDAC convention in Toronto and the Kamloops Exploration Group conference.
However, as has been true for our association’s 102-year history, we must remain alert to both the opportunities and challenges in the globally active B.C.-based mineral exploration and development sector.
Sluggish coal prices have resulted in challenging times for many developing coal mines. Overall, however, in the first half of the year, Canadian mining equities showed modest signs of improvement, underpinned by improved commodity prices and continued cost management.
According to many analysts, market activity shows majors remain focused on rigorous cost-control measures and disciplined merger and acquisition activity, while junior companies continue to pursue fundraising opportunities. And depressed share and asset prices are creating opportunities for companies to acquire assets at lower prices.
For many members, access to capital is an omnipresent challenge. Juniors continue to be creative in their approach to raising money, and those with good-quality assets, advanced projects, and strong management teams are best positioned.
Uncertainty over metal prices persists and will continue to drive some members to opt for hedging their future production.
In terms of recent and ongoing advocacy efforts, we continued to work on issues such as exploration tax credits for aboriginal engagement, proposed permit application fees, land access and use, and health and safety.
We pursued the latter in part through our annual exploration safety workshops, which attracted more than 80 participants in addition to 17 volunteer presenters and facilitators.
AME BC will continue as advocates for mineral exploration and development through the summer so that our members can focus on raising financing and exploring on the ground – ultimately making discoveries that can lead to the development of new mines in B.C. or elsewhere.
*Gavin C. Dirom is president and chief executive officer, Association for Mineral Exploration British Columbia (AME BC).
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