Mining Indaba Diary Day One

Alec Hogg reports from this years' Mining Indaba's hosting city, Cape Town, on the first days' movements at the meeting. He reflects on the realism that 2015's gathering emanates, chatting with junior miners and the plan throughout the conference.

https://www.youtube.com/watch?v=Z0z7J7t7PH4&feature=youtu.be

Well, it's been a great start to the Mining Indaba for those who come from the Northern Hemisphere.  Cape Town is in all her finery – beautiful weather today, as you usually find in Cape Town in February.  There's a sense of realism that is pervading the discussions here.  Those with money are holding out for better opportunities.  There are many junior miners scrambling around, trying to find any bit of potential that they can, and the boot is very firmly on the foot of those who have, rather than those, perhaps, who are looking for deposits.

We've had some interesting discussions.  The juniors are putting a brave face on it.  Those who sell mining rigs for instance, are saying that there are still opportunities, particularly on the African continent.  However, it is not an easy place to be if you're in the mining sector, particularly because in 2014 (in other words, a year ago), lots of optimism had surrounded the Mining Indaba with the view being that the worst had then been over.  People who left here without being able to consummate transactions felt rather cheated.  Well, this time around they're grateful that they didn't consummate those transactions.  In fact, it's easier to do deals now and the consolidation of the industry is the key word being used by many people who are looking at it with the benefit and experience of many years of attending this longstanding event.

We are going to be talking to private equity players over the next few days, as well.  They come into the market in a big way, looking for bargains and opportunities and that's really, what it's about.  Opportunists abound on both sides, but those who are doing the discovering of the minerals and metals around the world are finding the going a little tougher.  Those who do have genuine discoveries…even they are not finding it as easy to pass them on.

This is Alec Hogg from the Mining Indaba in Cape Town.