Regardless of the metal or mineral you pick, you have a good chance of finding exploration and development stocks with high-quality assets and operations divorced from the promise of their target commodities. This dislocation between price and potential value can be attributed to a handful of factors unique to the recent economic climate. Here are three to note:
- Inflation has made it more expensive to explore a project and develop it into a mine, making non-producing companies especially at risk of illiquidity.
- High-risk, high-reward assets with the potential for exponential returns are especially plentiful at the moment, with cryptocurrency, venture capital, artificial intelligence and fractionalized art, among many others, vying for a retail allocation alongside undervalued miners.
- High global interest rates, though on a downward trend, have left a more difficult capital-raising environment in their wake, raising…
