It has been lean and tough years for miners over the past years but this new report shows efficiencies and overall momentum in the sector. It is not knew for us.I have been posting the indicators and the reports from other analysts that have been hinting, highlighting and preparing for portfolio re-balancing with weighting towards mining. Now it is never 'kittens and cupcakes' when dealing with mining. There are plenty of stories from third world nations that remind us that are bad for PR. Glencore is currently in a situation right now but this is about the overall trend forward.The MSCI Metals and Mining Index of company share prices has rebounded even more dramatically—up more than two-and-a-half times from its low point, in January 2016. There has been a 2.8% increase in productivity of operated mines and employment in the sector is up.
Many companies have been focused on this efficiency, on technology to refine and mine better, and safer. New techniques and environmental regulations is helping to improve the impact mining can have, which is necessary. We have to mine. We will not survive in the modern world without mining. It is not a question, it is not worth pondering. We need mining for nearly everything we use in the modern world. Currently there are companies using environmentally friendly ways of leaching gold from tailing and we must continue to become greener as mining is the foundation of the green revolution.
Knowing that commodity prices have been rising, efficiency in operations has been strong it is obvious there is an opportunity in the stock price as these facts are not being priced. As previously reported John Paulson has created a fund to take advantage of this miss-pricing.
On top of that, there has been incredible spending by governments in favorable regions, and many explorers awaiting results from a summer drill season. Despite some of the gloom in the markets there is a lot of light in this sector.