Jim Paterson, Co-Founder and Principle of Discovery Group joined me at the New Orleans Investment Conference to discuss the current trends in the precious metals market, the challenges faced by equity valuations, and the intricacies of fundraising in today’s financial environment.
Jim compares the rise in precious metals prices with the lag in equity movements, explaining factors behind this disparity. We discuss the high cost of capital in today’s market and how discerning funding decisions are shaping the industry’s future. Jim also offers insights into the daily challenges faced in exploration and the growing strategy of acquisitions. I also ask about the intricacies of permitting across different global regions and the role it plays in project development. Additionally, we discuss the interest of institutional and retail investors in various metals, emphasizing the shifting focus towards critical minerals like lithium and copper. Jim provides a thorough examination of M&A activities and the potential for junior companies to be acquired by majors.