Case Studies

The rising price of gold has been one of the highlights of the past year on the financial markets and perhaps for many, one of the more positive developments. This state of affairs is likely to continue given that most commentators expect the interest rate cycle to have peaked on both sides of the Atlantic. Such a backdrop is something that should give gold and added boost from the $2500 an ounce area, and to further record levels. 

Of course, there has been a positive read across to many mining stocks over the recent past, especially those for whom their production costs have remained the same over the recent past. However, we have not seen the type of gold rush into the junior mining space that one might have expected given the lay of the land.

Nuestra Señora de las Mercedes

Kursk

SS Athenia 

HMS Victory 

SS Republic

Prestige

SS Arabic 

Marquise de la Tornay 

François Vieljeux

Beryl Field Loading Spar

RMS Lusitania 

5 German U-Boats

SS Gairsoppa

TSS Hesperian 

Piper Alpha

SS Mantola 

Plus, numerous expeditions documenting various shipwrecks of value throughout the Mediterranean Sea, Eastern & Western Atlantic, Western Approaches, Irish Sea and Caribbean in depths from 300 FSW to 17,000 FSW.

Various weapon retrievals on behalf of the US military and French Government to depths of 20,000 FSW.

Numerous recoveries of commercial aircraft.

Mining Sector Barriers

Part of this is a lack of liquidity at the small cap end of the market, but there is another much more important factor, something which affects mining companies both great and small these days in an ever- increasing way. Given all the rules and regulations regarding setting up mines both in first tier jurisdictions and developing countries, the time delay and barriers to entry increasing by the day. 

This not only includes the effects of the green lobby, but also increasing demand from nations groups, as well as the slings and arrows of bureaucracy, and the ironic fact that many of the best assets being found in conflict zones. This can mean that there are fewer stages to Nirvana then there are for many mining companies delivering production for the shareholders.