As the world awaits the full impact of what lies ahead following the decision of the UK people to leave the European Union, there is one clear winner in the Australian mining sector; gold.
However, junior miners focused on other commodities should prepare for even tougher conditions.
“Clearly the resources sector has suffered very challenging times over the past few years, yet we were starting to see signs of this turning, with strong investor interest in gold and lithium and the hope that this upturn would spread more broadly across the junior mining sector.
“However, the surprise Brexit vote on Friday creates significant uncertainty in global markets and uncertainty is what investors hate the most. So the confronting news for junior miners is that it may be a longer timeframe before investor sentiment picks up.
“On the flip side, for gold companies this is another boost (at least in the short term) to already strong investor interest, as investors flock to gold as a safe haven,” said Holly Stiles, National Energy & Resources Leader, Grant Thornton Australia.
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