Rick Rule sat down recently with Robert Simpson of Resource World Magazine to share his view on the 2020 outlook for mining stocks.
RW: What are your predictions for resource investing in 2020?
RR: I think 2020 is going to represent some, but not a huge improvement over 2019. Of course, the word ‘improvement’ requires you to identify who you are and what constitutes improvement. So, from an issuer’s point of what point of view, I think that more funding will be available for exploration, but it won’t be on the same generous terms that the exploration industry came to expect in the last decade. Importantly too, I think the funding sources will change. The larger mining companies have newly restored balance sheets and are enjoying fairly strong free cash flows, at least in the precious metals business, as a consequence of increased pricing, so I think one of the things that you’ll see is a continuation of the trend where the best source of funding for high quality exploration projects, either through direct participation or through equity, will be the major mining companies.