Welcome to the Metals Exploration Industry
The Global Metal Exploration industry in its current form exists only since the 1990’s - before it was integral part of the large mining producer companies.
With falling metal demand and dwindling prices during the 20-years long bear-market from 1980 through 2000, large mining firms “divested their exploration teams” to reduce overall costs. As a consequence, mining rights were often sold at very low prices to formerly employed geologists who started up their own small Exploration company through venture capital funding.
Hence, we find today proven reserves and geological expertise almost exclusively among the Explorers and so they became prime targets of producer companies who desperately need to increase their reserves for continued operations.
Going forward, we anticipate tremendous corporate activities in the very fragmented Explorer market. Takeovers, merger and joint-ventures combined with a inherent high leverage to the underlying metal prices should offer above average investment returs for Explorer shares over the next decade.
