Following a prolonged downturn, discretionary spending in the mining sector has begun to build. Recovered commodity prices and equity valuations have catalysed equity issuance which, alongside improved cashflow, has kick started exploration spending from critically low levels. For investors looking to participate in the mining sector recovery without direct exposure to individual exploration projects the drilling sector presents a sensible strategy in our view.
04 May 2017
Initiating Coverage: Early cycle beneficiary of increased mining sector spend
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Initiating Coverage: Early cycle beneficiary of increased mining sector spend
Capital Limited (CAPD:LON) | 102 0 0.0% | Mkt Cap: 200.7m
- Published:
04 May 2017 -
Author:
David Baker -
Pages:
23
Following a prolonged downturn, discretionary spending in the mining sector has begun to build. Recovered commodity prices and equity valuations have catalysed equity issuance which, alongside improved cashflow, has kick started exploration spending from critically low levels. For investors looking to participate in the mining sector recovery without direct exposure to individual exploration projects the drilling sector presents a sensible strategy in our view.