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2017 look ahead: mining sector

John Meyer, SP Angel, says a return to ‘Reaganomics’ by the incoming Trump presidency would be good for the mining sector. He discusses copper and the stocks he's watching; SolGold, Georgian Mining and Strategic Minerals.

All trading involves risk. Losses can exceed deposits.

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.

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