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Do Not Feed The Animals, Vancouver Resource Investment Conference edition (from IKN296)

The intro from yesterday’s IKN Weekly, IKN296


Do Not Feed The Animals, Vancouver
Resource Investment Conference edition
Last week there were a sudden crop of news releases from
the moribund end of the mining world and they all started in much the same way:
“[NAME OF MOOSE PASTURE PEDDLER] is pleased to announce that it will be
exhibiting at the upcoming Vancouver Resource Investment Conference on January
18 and 19, 2015.”

There are going to be a lot of stalls at this conference starting next Sunday
January 18th  because we hear
that Cambridge House has deeply discounted its normal exhibitors fees for certain
companies (in order to keep numbers up,
I’d guess
), plus that it’s in Vancouver so a lot of the companies with
nothing left in the treasury don’t have to fork out on plane tickets or hotels
for this one. There are a few decent companies on the long exhibitor’s list (1)
and the speakers’ list has three or four names worth listening to from a list
of maybe 40, but for the most part there’s a whole lot of dross trying to
coattail on the few that will survive and thrive over the long term*. It’s also
free entry for you the visitor as long as you pre-register (yes, how times change) so why not drop
by if you’re a local resident? And while you tour the stalls, count up the
number of times you hear that the market has bottomed and that asset values
will return to junior properties this year. And how smart you’d be to be a
contrarian. And how the oil price will make low grade open pit projects economically
robust again. I might even do one of those bingo cards for you and stick it on
the blog next week.

But more seriously, remember that the healing process in the mining
sector has not ended with the tax-loss selling window and the “January Bounce”
we’re now experiencing, the healing has only just begun. There are still a whole lot of
companies that must die before relative health returns to the junior mining
sector and most of all, the exploration
sector. The days of placements for directors’ fat salary cheques must remain a
remnant of the past. Do not feed the animals, but by all means go visit
the exhibition next weekend and do what kids do at the zoo; point at them, make
funny faces at them, laugh at them.
*Applies to companies and pundits alike


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