We just attended one of the better-attended Prospectors & Developers Association of Canada (PDAC) conferences in recent memory. Interestingly, despite the strong turnout, the event had an unexpected feel – lacking in vibrancy and personality. This followed closely on the heels of Roundup 2024, echoing many similar themes.
“Investor Confidence & Lack of Awareness”
A notable point of discussion was the impact of behind-the-scenes actions by frustrated activist investors. Their concerns over massive dilution caused by poor governance were palpable. A case in point is the McClintock Group’s activities in 2022 and 2023 with Blue Moon Metals Inc., which led to defensive financings and other poor governance policies that wiped out 80% of share value.
Many company management teams seemed complacent, almost too relaxed, amidst shareholder concerns over fiduciary duties. This raises questions about the overall awareness and responsiveness of company leaders in the industry.
There’s a paradox in the air. Even those deeply entrenched in mining seem hesitant to invest in it. Recounted tales of being burned by past investments linger, yet there’s an undercurrent of hope and a desire to find a way back in.
“Technological Integration and Talent Dynamics in Mining”
The role of AI was a hot topic, too. While AI’s ability to streamline workflows, compress data, and compile GIS levels more efficiently is undisputed, gone is the belief that it will miraculously uncover new major deposits. The industry’s growth will depend on thorough exploration, strong targets, and capable development teams.
A common lament was the loss of high-level technical talent. The mining industry seems to be missing those seasoned professionals who’ve weathered cyclical ups and downs and developed the resilience to execute effectively. The space now feels crowded with ideas about how the industry needs to advance, but there’s a noticeable gap in seasoned expertise to guide these ideas to fruition.
These reflections point to an industry at a crossroads, grappling with change while trying to retain its core values and strengths. As we navigate these challenging times, focusing on sustainable and responsible growth is more important than ever.