Joanna Cameron
Nov 13, 2023
The global push towards renewable power and battery-electric systems, especially in vehicles, has generated greater interest in the mining sector for energy transition metals. While this has created awareness and demand for critical minerals and battery metals, there are also the broader macro-economic trends of inflation, rising prices and supply chain tightness, says Joanna Cameron in an interview with Lexpert.
“There are the headwinds of increased inputs,” says Joanna. “While you’ve got revenue, you don’t have as much margin, so the exploration spend has gone down, and that has put some companies, the mid-tier developers, into an M&A play because projects are just more expensive than anybody thought.”
Joanna says demand for uranium is heating up. “People are expecting it’s going to hit its metrics,” she says. “And the algorithms are predicting it’s going to hit a bull run that’s been over 10 years in the making. Some of that is banked on geopolitical uncertainties. Some is because governments are adapting their stances on clean energy and building reactors.”
Some countries are tightening control over foreign activity in the mining sector which means more risk for companies engaged in International M&A activity. “It depends on the jurisdiction, definitely, but you’re going to have to price in the risk,” says Joanna.
Read the full article by author Carolyn Gruske published by Lexpert on October 23, 2023.