PDAC!!!!

The PDAC

I went to the Prospectors and Developers Association Convention in Toronto last weekend. Highlights and reflections follow.

The general mood was the most positive I have seen since before the Great Recession.  Most of the companies that I approached had money in the bank and real exploration or mining plans underway. There was a general sense that this will be a great year for junior exploration and mining companies. I think the confidence is warranted.

There were fewer companies at the PDAC than in past years. I have not been for four years, and it is obvious that many of the companies that were struggling at the time did not survive. I think that the ones that did have a much better appreciation of just how close they are to catastrophe - they are on the margin at all times, and I hope that this knowledge will drive much better management and more thoughtful risk-taking in years to come.

I did notice a few geologists who had rented booths in order to sell prospective claims. I don't recall seeing this before. It may reflect lower rental costs for booths, a stronger sense of the opportunities in the market, or both. One geologist advised that two of her properties were going to be gone by the end if the first day.

There was also a good share of more memorable exchanges with less reputable companies. Some of these follow...same company.

The IR guy was at the booth - no geologists or other managers, who we were told were on holidays. We were shown a group of about 12 prospective properties...

Q - "Are all of these properties in good standing?"

A - "Well...no."

Q - "Do you have any cash?"

A - "Not at the moment, but we are hoping for $70,000 in a private placement from insiders soon."

  

Q - "What does this company need to move ahead successfully?"

A - "We need new management, asap!!!"

Q - "Is there a search underway for new management?"

A - "Yes!  The new guy was supposed to fly in today.  I have no idea where he is."

Q - "Do you know who he is?"

A - "Well...no."

I took a pass on that one.

The quote of the Convention, courtesy of my cousin..."Let your winners run!"

The only difficult aspect was missing my father with whom I had attended all previous PDAC's that I went to. Here he is, about to launch on a tremendously interesting and eventful life. He is missed every day.