As base metals prices continue to attract investor interest, I’m keeping a close eye on juniors like Norden Crown, whose Fredriksson Gruva target, and its resemblance to a Broken Hill Type deposit, appears to have the scale, the grades and the consistency of mineralization to interest a major.
The United States is back in the fold of countries pledging to reduce greenhouse gas emissions, and that is helping to drive demand for an assemblage of metals that a global push to decarbonize and electrify is expected to require.
When looking for an investment, the approach I take involves looking at the global, big picture conditions. I study trends, read the news, basically watch and listen to what’s going on in the world. Then I study the different sectors to select the one (or ones) that I think is going to match up well with the overriding, long-term theme. This is top-down investing.
The second part of my search for the dominant investment is a bottom-up approach. This is where I find individual companies, in the specific sector I have chosen to invest in.
Several factors influence gold prices (mainly the US dollar, gold ETF inflows/ outflows, inflation rate, bond yields, safe haven demand, physical gold demand, gold supply) but none is more reliable than real interest rates.
The demand for gold moves inversely to interest rates — the higher the rate of interest, the lower the demand for gold, the lower the rate of interest the higher the demand for gold.
The presence of BHT mineralization hosted in banded iron formations could be an important characteristic at Fredriksson to trace and find deposits with the potential for scale — something a junior like Norden Crown Metals must be able to demonstrate to a prospective major (or mid-tier) acquirer.