With the 2016 Diggers & Dealers fast approaching, what can we expect? Cannings Purple’s Investor Insight team explain.
It wouldn’t be an understatement to say that the past few Diggers & Dealers have been a sober affair, despite the copious amounts of alcohol consumed in Kalgoorlie over the three day event.
Following the boom years of the mid-2000s, the GFC and subsequent commodity price retreat saw many resources companies retreat from their share price highs, finding a new normal in a cash constrained environment and wobbly share price performance.
However, this year, the tide seems to have turned, at least for some. Since the Mining Indaba and 121 conferences in Cape Town at the beginning of February, we have seen new life in the resources sector, particularly for companies holding assets in the gold and lithium space.
As we get ready for the next three-day liver torture test in early August, we can see the signs for a very positive conference emerging, albeit a smaller than average affair. Deals are being done, funds are being raised and drill results are being released on a regular basis.
This is all good news for the market.
Many of our clients are stepping-up their marketing and investor engagement activities, with a renewed focus on quality industry conferences and roadshows.
We are hopeful that there will be a small army of brokers, fund managers and analysts doing the rounds of the booths and bars, sniffing out the best investment opportunities.
Cannings Purple will have our full Investor Relations team on the ground to make sure that our clients are well looked after.