David Hutchins, fund manager at Global Resources Investment Trust (LON:GRIT), says that the environment for junior mining companies remains tough, but insists there are opportunities.
The mining investment group’s half-year results reflected this climate, showing that the company’s net asset value has fallen 23% in the period.
Hutchins says people are waiting to see what Mick Davis buys with the billions of dollars his private mining venture X2 Resources has.
‘At some point he is going to spend that money,’ says Hutchins. ‘If he’s buying something on market he’ll probably have to pay a premium and people will say “these assets are cheap, we should get involved in this sector” – so I think that will be a catalyst.’