Dig Deep Understanding the Impact of Geopolitics and Tariffs on the Global Mining Sector
In this episode, we chat with Cailey Barker, an experienced analyst and portfolio manager who started his career as a geologist getting experience in the field before moving into a senior position with the likes of Numis Securities and then more recently at Blackrock as their Director and Portfolio Manager.
An active listener to the podcast, Cailey wanted to come on and talk about his insights into the gold market, the current state and outlook of mining, investment thesis in the industry and how Trumps tariff wars look to affect our industry and much more.
KEY TAKEAWAYS
- The mining sector faces significant challenges, including cyclicality, poor past discipline among companies, increasing regulations, and public perception issues. Despite these challenges, companies are now in better shape with robust balance sheets and clear strategies focused on shareholder returns.
- While gold prices have reached all-time highs, interest in gold equities has waned. Factors such as high interest rates, geopolitical uncertainties, and a shift in investor focus towards sectors like technology and critical minerals have contributed to this trend.
- Junior mining companies struggle to secure financing due to a risk-averse capital market that favours large-cap established producers. This has led to a reliance on alternative funding sources, such as private equity and larger mining companies, for exploration projects.
- Environmental, Social, and Governance (ESG) factors remain crucial in the mining industry, although they may not be as prominently discussed as before. Companies are now expected to have clear, actionable plans for sustainability rather than just making broad claims.
BEST MOMENTS
"To have that sort of focus, attention to detail, and whatever situation you're in... you can always sort of relate back to the fact that it's not as bad as being in a ring with an 18 stone monster trying to take your head off."
"The opportunity set is incredibly compelling... I don't see it sort of returning to those lows that we've seen."
"There's been a dearth of mining investment over the last decade... the risk-averse capital markets have just sort of moved to favour large cap established producers mainly."
"If you can find something similar where you basically don't need to build a processing plant, all these sort of ESG considerations become a lot lower and the economics change dramatically."
VALUABLE RESOURCES
Mail: rob@mining-international.org
LinkedIn: https://www.linkedin.com/in/rob-tyson-3a26a68/
X: https://twitter.com/MiningRobTyson
YouTube: https://www.youtube.com/c/DigDeepTheMiningPodcast
Web: http://www.mining-international.org
This episode is sponsored by Hawcroft, leaders in property risk management since 1992. They offer:
- Insurance risk surveys recognised as an industry standard
- Construction risk reviews
- Asset criticality assessments and more
Working across over 600 sites globally, Hawcroft supports mining, processing, smelting, power, refining, ports, and rail operations. For bespoke property risk management services, visit www.hawcroft.com
GUEST SOCIALS
Website: https://caileybarker.com/
Email: contact@caileybarker.com
LinkedIn: https://www.linkedin.com/in/caileybarker1/
ABOUT THE HOST
Rob Tyson is the Founder and Director of Mining International Ltd, a leading global recruitment and headhunting consultancy based in the UK specialising in all areas of mining across the globe from first-world to third-world countries from Africa, Europe, the Middle East, Asia, and Australia. We source, headhunt, and discover new and top talent through a targeted approach and search methodology and have a proven track record in sourcing and positioning exceptional candidates into our clients' organisations in any mining discipline or level. Mining International provides a transparent, informative, and trusted consultancy service to our candidates and clients to help them develop their careers and business goals and objectives in this ever-changing marketplace.
CONTACT METHOD
https://www.linkedin.com/in/rob-tyson-3a26a68/
Podcast Description
Rob Tyson is an established recruiter in the mining and quarrying sector and decided to produce the “Dig Deep” The Mining Podcast to provide valuable and informative content around the mining industry. He has a passion and desire to promote the industry and the podcast aims to offer the mining community an insight into people’s experiences and careers covering any mining discipline, giving the listeners helpful advice and guidance on industry topics.