Like many established mining conferences Mines & Money Asia 2016 was down in the number of attendees and the number of exhibiting companies. However, this did not deter the core participants in this industry nor the investors that understand the cyclical nature of the mining sector. In fact, like any sector the conferences that are slow during the bottom of the cycle will present the strongest opportunities and management. These are the survivors. The Companies that will emerge and enter into the up cycle stronger, wiser and more attentive.
Every sector that goes through a severe downturn fuels the argument between “Things will never be the same” and “Things never change”. Is the mining industry forever changed or will the next bull market bring back the same irrational exuberance and belief that prices in both commodities and stocks will go up forever? Time will tell.
Regardless, one thing that is forever true, lessons are learned in failure. Hopefully the mining sector, and mining investors have learned a few new lessons but not at the expense of taking risk. It is risk taking that leads to new discoveries, new ideas and new opportunities.
Commodity prices have enjoyed upward performance year to date which has lead to many positive turnarounds in stock prices. Are we off the bottom? Its too early to call a trend. The position here is that we have scene the worst but may not see a strong, sustainable recovery for another year. Again. Time will tell.