Summary of Mines vs Mineralisation research paper.
Four key elements that need to work together: 1. Social Licence 2. Geological Factors 3. Financial engineering 4. Operating factors
Geology underpins linkages between the elements.
2/x For mineral deposit to be economic it must able to meet challenges related to high energy costs or even social license to operate.
i.e. Significant size and grade in a stable geographic location are important.
3/x As an investor it is really important to define what such project looks like in terms of dimensions, grade, depth, location etc.
It will help you to pick right companies to invest!
This is also critical for management teams and geos...define what you are looking for 🙏
4/x From the paper: Mindset of explorers needs to change from:
"finding mineralisation"
to
"finding significant economic deposit."
As business minded geo, this is where I often have to help other geos to re-focus on what matters: FINDING COMMERCIAL DEPOSIT.
5/x Paper highlights a need for "BOUNDARY SPANNERS" that can work cross-disciplinary and communicate knowledge effectively + find new solutions.
Universities predominantly produce "specialists" and do not encourage "generalist" route.
6/x Building PREDICTIVE MODELS that can answer - "what are common features of high quality mineral deposits that can be mapped, and used in mineral exploration."
We are utilising quite a lot of publicly available and proprietary tools in this area in Equivest. Work in progress.
2/x Reading macro analysts, following arguments emerge.
Current commodity run is:
- supply chain related only
- speculation fueled
- long term secular shortage in commodities
- caused by geopolitics, sanctions etc.
- going to end soon
- going to last a decade
3/x I am personally watching for short term pull back, but support long term commodity price increase trend from supply shortage perspective.
Uncertainties: china, wars, geopolitics.
Below is some data supporting long term commodity bull.