“We’re not talking about greenfields,” he said. “We’re talking about serious, 43-101 resources that’ve got considerable upside,” he said, referring to the technical study designation. The projects have strong net present values and internal rates of return that normally should trade at five to 20 times higher than they are, the CEO said.
Lynch, the founder of Save Canadian Mining, which fights predatory short-selling practices affecting junior miners, also spoke about how different rules for some traders like hedge funds allow them to pound down junior valuations.
On the positive side, there are signs that what has been a very difficult fund-raising markets for juniors is starting to turn, according to John Feneck, founder of Feneck Consulting. Since March, gold and silver CEOs in the junior space report they’re having an easier time raising funds, he said.
“That turned the corner last year, with gold’s breakout right now and then silver’s follow through,” he told delegates. “Where it would take them maybe a month to raise three or four million, now they’re doing it in two or three days, which is really exciting to see.”
The Energy Transition Metals event was organized by The Northern Miner and Precious Metals Summit Conferences and took place April 29-30 in Washington, D.C.
Below, watch the full discussion, moderated by The Northern Miner’s editor-in-chief, Alisha Hiyate.