MDNGF - Mineral Exploration Co. Makes Important Discovery | Benzinga
Source: Ron Struthers 04/18/2024
Ron Struthers of Struthers Resource Stock Report takes a look at the hundreds of M&A agreements recently signed, the current state of copper as it is breaking out, and Zonte Metals, a company that recently made an important discovery.
A sure sign of a market bottom and turnaround in mining is increased merger and acquisition M&A) activity, and this is going through the roof. It does two major things that are very bullish:
- Shareholders of acquired companies get higher prices and cash;
- It reduces the number of mining companies on the market to buy.
So, basically, it increases demand and reduces supply at the same time.
How active has M&A been?
Literally, hundreds of agreements have been signed, with most flying under the radar of mainstream media and retail investors. Just the last quarter of 2023 is amazing:
- In the global mining industry, there were 298 M&A deals announced in Q4 2023, worth a total
value of $33.9 billion, according to GlobalData's Deals Database; - In value terms, M&A activity increased by 142% in Q4 2023 compared with the previous
quarter's total of $14 billion; - In the Canadian mining industry, there were 100 M&A deals announced in Q4 2023 worth a
the total value of $8.1 billion, according to GlobalData's Deals Database; - According to Fitch Ratings — The rise in M&A activity across the mining industry over the past
year is likely to continue into 2024.
Those in the industry know the market best, and they have been buying hand over fist for the last two years at the bottom and turnaround. We should be buying, too.
A lot of junior explorers are being bought out as well. I was surprised this week when Great Pacific Gold announced a buyout of a private copper junior, Tinya Valley Copper, for $16 million in stock. What surprised me is how grassroots the project is, as it has not had one drill hole yet. It is in a known copper belt, though, to its credit.
The key reason for this is that copper is in high demand, there will be shortages, and prices are rising. All the major mining companies are scrambling, trying to find more copper. I did a major dive into the copper market in December, which you can review on my Substack. I picked Capstone Mining CS, and it is our top-performing producer, up almost +50%.
In that report, I showed the next two levels of resistance on the chart, and copper just took out the 2nd resistance level this week. Copper is in a steep rising projection and will soon reach all-time new highs around $5. And copper is going to double digits. It is not a matter of if but when.
About 15% of copper supply comes from scrap, and usually, higher prices will bring out more scrap, but a lot of this has already happened in the past couple of years with the recent price rise. Copper mining is different and unique.
Copper mining is very rare in Canada as only about 1% of the world mine supply is from here. That means if Zonte or other juniors in Canada prove a copper deposit, it is quite unique and will be sought after.
Another huge factor is there is really no junior copper producers, small production is coming as a byproduct of other mines such ...