We check in on sentiment about the junior market at the AME BC Roundup conference in Vancouver BC.
VANCOUVER, BC (MINEWEB) – I’ve had a lot of where-is-this-junior-market-going conversations in the past three days here at the Roundup conference in Vancouver BC. As at the recent Cambridge International VRIC show there appears to be a small pickup in optimism about junior market.
It’s not euphoria. Far from it. There’s still lots of healthy scepticism.
I bumped into a consulting geologist, Andrew Abraham with Paradigm Shift 3D Geological Consulting, on the way into the conference this morning and he noted that at so many recent conferences there was a similar buzz. Only, afterwards, it invariably soured. He recalled following up once positive sounding leads only to get non-committals: sorry, we still don’t have any cash to spend.
There have been a spat of financings in recent weeks, however. And that has not escaped many people’s attention here. Many here also take that as a good sign.
But, on the other hand, some noted the rather hard terms in recent financing. in some cases stock is trading for cheaper than offered shares. One Vancouver-based analyst noted that it made it hard to generate momentum in the market with such weak financings out there.
The going prediction for juniors in 2014 is that we are in for a year of not much. That, of course, would be better than the awfulness of 2013. Newsletter writers such as Brent Cook and Mickey Fulp tend to see it this way and, by extension, that it is maybe time to get into some well thought out positions with next year or beyond in mind for market moves back up.
If there’s legs to the current run in the junior market – up about 10 percent in January, but far off recent highs – a few attendees said they will believe it if it extends past the PDAC conference in Toronto in early March. Typically, at least in recent years, there’s a selloff around that time.
Question is, can the Venture appreciate past PDAC?
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