Most mining investors plan to maintain or expand their positions in the sector in 2024 as they seek to draw a line under disappointing returns last year, according to Mining Journal Intelligence's (MJI) Investor Sentiment Report 2024.
The report, now in its seventh year, highlights investors' intentions relating to the mining industry in the year ahead, as well as trends in 2023, based on a survey of 127 investors, managing estimated combined assets of more than US$11 billion.
While more than 60% of respondents said their mining positions performed below or well below expectations last year, 69% expect better for 2024. Against this positive backdrop, a massive 87% are planning steady or growing investment in the industry this year.
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There are strong grounds for this rising optimism, according to Colin Hamilton, managing director of commodities research at BMO. "The wider economic cycle is actually starting to improve. Some of the demand pressures and the destocking we saw through value chains through last year are reversing," he told Mining Journal Intelligence.
"We still have good margins in this industry, and with the lack of capex being put to work, that probably does mean that free cash should be a little bit better than the normal trend," he added.
The survey also revealed investor preferences in terms of target commodities, asset maturity, and world region, with results suggesting that a development-stage, base metals asset in Canada would attract the most investor interest this year (Canada replaced Australia as the top target jurisdiction in this year's survey).
The poll was run from mid-October to early December, targeting investors within Mining Journal's networks and those of sister publications in the Aspermont stable, including Miningnews.net.
Retail investors made up the bulk of respondents, while most were smaller investors, with those with assets under management (AUM) of up to US$50 million making up about 87% of respondents (4.7% managed assets of more than $1 billion).
The Investor Sentiment Report 2024 is available for free for Premium subscribers and can be purchased here.
