MM HK15 Investor Panel Session & Space Mining

Day 2 of Mines & Money Hong Kong 2015, and we arrive straight into an investor session of fund managers trying to be very excited about the opportunities pessimism brings. As usual lots of chat about China and India but most interestingly for us are the comments about money now looking for safer havens in terms of political risk. We are also exhorted to see Frank Holmes speak again at his next presentation on China. Andrew Ferguson of APAC believes copper is the bell weather of growth and when India and China appeared as growth economies, combined with a weak dollar, investors through the 00’s ‘hid’ in commodities. Ferguson  believes copper is very much a currency trade and that more money will flow out of commodities as it gets more comfortable with other areas. He is however positive about medium term mining prospects as new production still needs to be brought on stream as part of the ‘natural’ cycle of commodities.

The irrepressible Rod Whyte popped up again pointing the finger at banks and financiers not willing to back bankable feasibilities. Rod highlights the 30^th June as a key ‘capitulation’ date as the next cycle of financials come through and more companies go to the wall- this is where he believes you need a front row seat to pick up assets. 

Casey Research then stood to the podium and warned us  he is going to out-pessimism everyone and starts with “The Next Great Depression”. CSR21 always enjoys s a man who ask the rhetoric question “Well could I be wrong?” in a voice of enormous improbability.  His talk is all about quantative easing, massive debt etc, etc. Later he cites Aristotle, Einstein and why we don’t use lead as money but we must admit to having lost the thread at this stage. Interestingly he mentions that mining is a ‘19 Century choo choo train business for young people choosing careers’- which wins the days prize for “Restricted View held by A Western Citizen”.

The next part of Doug Casey’s talk is best summarized via our real time quote-tweet:

‘Casey Research- “NGO’s, Natives, Nimbis.. funded by stupid guilty people..spend more on lawyers than geos…natives troublesome” #MMHK2015’

Well there we go. Mr Douglas Casey rounds off his thesis by saying that the future of mining is on asteroids in space and through nano-technology. Perhaps his plan is to make the troublesome natives really small and leave them on comets?

Mickey Fulp, the ‘Mercenary Geologist’ ends this phase of the session and has the interesting opinion, not unfounded, that increasing ‘aboriginal’ issues are a major driver for metal prices as social issues are an increasing drag on the development cycle of mines.  Well, he does what he says on the tin.