By Giles Gwinnett
Proactive Investors
The question of ‘location, location, location’ is a serious one for the mining company investor, suggests City broker Ambrian today.
There was a time when traders were happy just to see a development company pick up a mining project anywhere. But now that the race for “rapid growth” is over, the issue of company cash flow has come to the fore, it says.
Therefore, project sites with low costs become even more significant.
“Our house view is that jurisdictions that offer a well-supported infrastructure, where labour costs have come down, such as in the US and Europe (specifically Spain and Eastern Europe), should be taken more seriously, especially if permitting is becoming more commonplace,” it said in a note.