Mining Stock Daily Paul Gurney on Current Valuations of Explorers and Developers
Jan 15, 2026
Paul Gurney, a senior investment professional at Beacon Securities with expert insights on mining and commodities, joins the discussion to delve into the fluctuating commodities market. He highlights the recent uptick in gold and silver buying despite a price pullback. Gurney explores the critical role of discoveries in boosting explorer valuations and emphasizes the appeal of brownfield over greenfield projects. He also sheds light on the current interest in copper and the challenging economics involved in new mining ventures.
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Rally Has Multiple Durable Drivers
- Commodity rally has multiple drivers: currency moves, resource nationalism, and supply squeezes across metals.
- Expect mean reversion but also a multi-year rally supported by demonetization and supply constraints.
Don't Overpay Early-Stage Explorers
- Avoid paying high valuations for explorers with no discovery; target companies under C$100M when there's no discovery.
- Favor firms with a resource or scoping study before accepting C$300–500M market caps.
Funds Will Recycle Into Exploration
- Expect capital to move down into explorers as funds seek alpha after heavy producer exposure.
- Look for juniors with credible discovery potential since funds are hunting for exploration upside.