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Do Not Feed The Animals, Vancouver Resource Investment Conference edition (from IKN296)

The intro from yesterday's IKN Weekly, IKN296


Do Not Feed The Animals, Vancouver Resource Investment Conference edition
Last week there were a sudden crop of news releases from the moribund end of the mining world and they all started in much the same way:

“[NAME OF MOOSE PASTURE PEDDLER] is pleased to announce that it will be exhibiting at the upcoming Vancouver Resource Investment Conference on January 18 and 19, 2015.”

There are going to be a lot of stalls at this conference starting next Sunday January 18th  because we hear that Cambridge House has deeply discounted its normal exhibitors fees for certain companies (in order to keep numbers up, I’d guess), plus that it’s in Vancouver so a lot of the companies with nothing left in the treasury don’t have to fork out on plane tickets or hotels for this one. There are a few decent companies on the long exhibitor’s list (1) and the speakers’ list has three or four names worth listening to from a list of maybe 40, but for the most part there’s a whole lot of dross trying to coattail on the few that will survive and thrive over the long term*. It’s also free entry for you the visitor as long as you pre-register (yes, how times change) so why not drop by if you’re a local resident? And while you tour the stalls, count up the number of times you hear that the market has bottomed and that asset values will return to junior properties this year. And how smart you’d be to be a contrarian. And how the oil price will make low grade open pit projects economically robust again. I might even do one of those bingo cards for you and stick it on the blog next week.

But more seriously, remember that the healing process in the mining sector has not ended with the tax-loss selling window and the “January Bounce” we’re now experiencing, the healing has only just begun. There are still a whole lot of companies that must die before relative health returns to the junior mining sector and most of all, the exploration sector. The days of placements for directors’ fat salary cheques must remain a remnant of the past. Do not feed the animals, but by all means go visit the exhibition next weekend and do what kids do at the zoo; point at them, make funny faces at them, laugh at them.

*Applies to companies and pundits alike