This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
After having seen a year of recovery in 2016 in the mining sector, John Meyer, founding partner of SP Angel, says 2017 could be all about the US economy.
He tells IG that a return to ‘Reaganonomics’, with a programme of building new roads, railroads and hospitals, means demand for base and industrial metals will be driven higher. While China took part in most of the gains seen in 2016, he says there will also be an input from there, but the main thrust for the sector will come from the United States.
On the dollar, which plays an important part in the prices of base metals, John says his base case is that the US currency will fall back from its near 14-year highs, thus helping to mitigate costs.
John’s picks for 2017 include copper/gold explorer SolGold. It has ongoing exploration work in Ecuador and he says that as the company moves forward with the project look there for some exciting news in 2017.
His pick from Europe comes from Georgia. Georgian Mining, formerly Noricum, has recently undertaken a 100-1 consolidation which gives its share chart a steep cliff edge, but as time goes on John believes this too is a stock to watch.
Then, for his third pick, he returns to his roots and is looking to a Cornish tin miner – Strategic Minerals. John says that costs in the UK mining industry have come down and Strategic has an interesting asset to follow.