Exclusive interview editor Eric CoffinEric Coffin remarks that words of warning about the end of the bull market in metals from financial commentators in New York gives him great comfort that metals prices will be continuing their march higher. The issue that many don't account for is the declining production capability across many of the metals. Through years of low prices little new development took place. Now old mines are closing and new mines are generally a few years from production. There isn't the present capability to meet existing demand, let alone the increases in demand driven by growth seen in China, and really around the world. He said that companies with the courage to work towards extracting gold from difficult but highly mineralised places will do very well and he notes that Southern Arc Minerals, working in Indonesia, is one such company he is looking at with great interest and that he expects they will become one of the 'big ones' given the properties they hold there.
He also notes the recent pullback in the metals prices and the mining stocks has followed the pattern of the past few years, it just happened over a shorter period this year. Eric's confident that with the fundamentals to the bull market firmly in place, the pullback was, and over the summer may continue to be, a chance to pick up bargains in the market.