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Ian Ball: Monetary Policy Will be the Main Driver for a Higher Gold Price

Ian discusses his previous experience working with Rob McEwen at Goldcorp and then McEwen Mining. His main take-away from that experience is to be open and willing to question your underlying assumptions that drive the business. Alternative ideas may be out of your comfort zone, but they often better.

It’s hard to create value in junior mining today, and there are a lot of headwinds even with the increase in the gold price. Permits are difficult to obtain and usually take longer. Junior miners need to be able to generate cash in a down market and ride it out without having to issue equity.

The gold market has traded sideways for the past two years, but when it broke through $1400 that was very significant. Investors should watch for more trade disputes and problems with China. However, the most significant driver for gold will likely come from the policies of the Federal Reserve. Overall, the environment is much healthier now than what we have experienced over the past five years.

He likes the book “The Essays of Warren Buffett,” which distills down a wealth of business knowledge.

A key driver for innovation in the mining sector is moving from diesel to electric hauling trucks. McEwen Mining has run some studies that show you could significantly reduce your expenses.

Time Stamp References:
0:40 – Ian’s early career with Rob McEwen
3:00 – Valuations with the juniors.
6:00 – Technicals and the gold price.
8:30 – Favorite books and authors.
10:15 – Efficiency in mining operations.

Talking Points From This Week’s Episode
• Question your underlying assumptions.
• Junior mining remains a tricky business.
• Fed policies will be the primary driver for gold.

Ian Ball is CEO and President of Abitibi Royalties. Mr. Ball worked 10.5 years, at Goldcorp and then McEwen Mining. He served as McEwen Mining’s president where he was responsible for overseeing production, construction and exploration activities throughout North and South America. He was responsible for discovering McEwen Mining’s El Gallo II project, scheduled to become one of the 15 largest silver mines in the world, building the El Gallo I gold mine (in addition to discovering several of the satellite deposits at that mine), in Mexico.

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