Stagnant Industry Cannot Keep Thousands Away From PDAC

Those involved in the mining and minerals industry really are an optimistic bunch. Faced with an economic downturn that has spread across the globe ? one, some say, that crept up on everyone ? mining professionals remain hopeful that the industry will return. An example of that optimism is the attendance at two of the industry?s key conferences and exhibitions. In February, more than 4,200 people attended the SME Annual Meeting and Exhibit in Denver, CO. And a week later, in Toronto, Ontario, more than 18,000 were on hand for the Prospectors and Developers Association of Canada?s (PDAC) meeting. Both are respectable numbers and run contrary to meeting attendance figures during previous downturns when attendance and the numbers of exhibitors fell off significantly. Like other downturns, this most recent one has resulted in massive layoffs, curtailments of production and outright closures. Exploration has been hard hit and many junior mining and exploration companies will either disappear or be swallowed up by others. Gold is its usual self The PDAC generally attracts the gold mining and exploration sectors. So that might explain some of the optimism at the meeting. Unlike base metals and construction materials, gold, not surprisingly, is doing well. And most of the companies in the Investors Exchange at PDAC were involved with gold. While the balance sheets for most base metals companies look bad, gold companies appear to be not as hard hit. Gold is doing what it usually does during a downturn ? act as a safe haven while the value of other assets collapse worldwide. Governments around the world are preparing to pour trillions of dollars in an attempt to resuscitate their economies. This will likely lead to inflation, some experts at the PDAC convention said, which will be good for gold. And gold mining companies are also benefiting from lower production costs. The result is that some gold watchers believe gold could reach $64/g ($2,000/oz) at some point.