The discrepancy between mining company valuations and commodity prices is at its worst levels in decades, the Precious Metals Summit in Colorado heard this week.
“This is probably the worst disconnect I've seen in over 20 years,” Haytham Hodaly, senior vice-president for corporate development for streaming pioneer Wheaton Precious Metals (TSX: WPM; NYSE: WPM), told the Precious Metals Summit in Colorado.
Eaun Gray, senior vice-president for business development at Franco-Nevada (TSX: FNV; NYSE: FNV) and a 30-year veteran of the sector agreed, calling the situation “unprecedented.”
"This is worse than the ‘little Bre-X thing’ when that came out and everything dropped,” Gray said.
At the same time, the panel of royalty and streaming companies noted that the current divide between mining equities and commodity prices is without parallel, creating a buying opportunity for strategic investors.