Michael Doggett is president of HanOcci Group, a resource investment and mining advisory service based in Toronto and Vancouver. Michael is an adjunct professor at Queen’s University, where he served as director of the Mineral Exploration Master’s Program from 1997 to 2007.
The minerals industry is characterized by cyclical periods of commodity price volatility, which typically range from seven to ten years in duration. These cycles result in somewhat predictable corporate behaviour as mining companies deal with windfall profits in the boom times and the inability to cover costs in the bust times. Junior exploration companies flourish in the upward portion of the cycle while many cease to operate at the trough in the cycle. These responses to short-term fluctuations in commodity markets take place within the long-term context of ever-rising demand for most mineral commodities. The challenges and implications of operating in a business environment with often conflicting short- and long-term objectives will be the focus of this presentation.