Contributor

IMARC unites the investment community

Where global mining leaders connect with technology, finance and the future, IMARC is shaping up as a must-attend event for the industry in early 2022. 

As the leading international event series connecting sophisticated investors from around the world with mining company management teams both online and in person. 

Mines and Money will leverage off the scale of the International Mining and Resources Conference (IMARC) and bring its unrivalled network of thousands of investors in-person to Melbourne, and online for those that cannot attend in-person.

Being co-located alongside Australia’s largest mining event, will not only put mining companies in front of the hundreds of investors that attend Mines and Money events, but will also reach thousands of private investors, with the event expecting upwards of 8000 attendees.

Mines and Money @IMARC provides an excellent opportunity to identify and compare new investments. 

With professional investors meeting exciting explorers on the cusp of the next big discovery, near-production development companies and cash generative producers to discuss their next big mining investment. 

Gain insights into commodity trends that will guide your investments

Gold, silver, copper and battery metals are just some of the commodities you can expect to hear about from some of the greatest leaders in mining, investment and finance with more than 250 mining and resource experts providing the latest market commentary, project updates and insights into current commodity trends that can shape investment strategy. 

Connect with senior management of mining companies

More than 800 mining and energy companies are expected to attend the event. From diversified majors such as BHP, Rio Tinto and South32; to gold mid-tiers including OceanaGold and Evolution Mining; through to some of the most compelling exploration and development companies such as Multicom Resources and Wiluna Mining.

You will be able to assess and compare a range of companies from around the globe, across the commodity spectrum and at all stages of the life cycle by connecting with the senior management of mining companies directly on the expo floor.

Hundreds of networking opportunities

Whether you’re looking for private equity, or private investors, there will be ample opportunity for you to meet thousands of decision makers, mining leaders, investors and financiers with more than 70 hours of networking opportunities.

Our bespoke AI-driven matchmaking platform pre-qualifies your investment needs and gives you the power to search investors by type, commodities, project stages, regions and stock exchanges of interest.

Enabling you to identify the right investors for your projects so you can schedule lucrative meetings, leading to more deals and opportunities.

In-person and online

As a hybrid event, you can expect more meetings, more connections and to meet more international investors than ever before.

The hybrid event will welcome Australian attendees in-person to Melbourne, and international attendees from more than 130 countries online from January 31 – February 2, 2022.

Claim your complimentary investor pass at minesandmoney.com/imarc. Not an investor? Not to worry – receive 10 per cent off delegate passes by registering with the discount code AUSRI. 

 

Listen to insights from some of the greatest leaders in mining, including:  

  • Johan van Jaarsveld, chief development officer, BHP 
  • Sandeep Biswas, managing director & chief executive officer, Newcrest Mining 
  • Wendy Holdenson, chief operating officer, Mitsui & Co (Australia) 
  • Troy Hey, executive general manager – corporate relations, MMG 
  • Rohitesh Dhawan, chief executive officer, International Council on Mining and Metals (ICMM) 
  • James Agar, group procurement officer, BHP 
  • Mark Cutifani, chief executive officer, Anglo American 
  • Lisa Ali, chief people & sustainability officer, Newcrest Mining 
  • Rt The Hon. Helen Clark, chair, Extractive Industries Transparency Initiative (EITI) 
  • Ian Hamm, chair, First Nations Foundation 
  • Tom Palmer, president & chief executive officer, Newmont 
  • Chris Griffith, chief executive officer, Gold Fields 
  • Joanne Woo, global VP, division head of marketing & communications, ABB 
  • Tony Makuch, president & chief executive officer, Kirkland Lake Gold 
  • Michael Nossal, chair, IGO 
  • Robyn Dittrich, VP, procurement – technology, communities & enterprise, BHP. 

Gold

The great gold vs crypto debate

The recent performance of cryptocurrencies coupled with year-to-date outflows from gold ETFs has led to questions about whether cryptocurrencies are displacing interest in gold.

Andrew Naylor, regional CEO APAC (ex China) of the World Gold Council, explains why this is not the case.

A question often asked is the impact of cryptocurrencies on gold as an asset class, and whether interest in crypto will displace interest in gold.

The short answer is no – they are fundamentally different asset classes. Gold is also a physical asset and by definition crypto-currencies are not. But arguably one of the most significant differences is the very different nature of demand for both assets.

Unlike crypto, gold has a very diverse demand profile and use-case(s). It also has intrinsic value. If you look at the sources of demand for gold over the period 2010-2020, investment demand accounts for approximately 42 per cent of annual demand, jewellery 34 per cent, central banks 17 per cent, and technology about 7 per cent.

Each of these sectors of demand has different drivers – jewellery and tech demand often increase in times of economic expansion.

Investment demand is driven by uncertainty, and central bank demand by a combination of both. The unique and diverse nature of demand for gold, underpinned by different drivers, means gold performs differently from other asset classes, including crypto.

The result is that gold is often not significantly correlated to most other assets, particularly in downturns, making gold a potential diversifier.

There are other factors that distinguish gold from crypto – its liquidity, volatility profile and its role in a portfolio.

Crypto assets can be volatile and are not without risk so an argument can be made that the higher the exposure to crypto, the greater the need for an asset that can mitigate risk such as gold. It is therefore important to consider the different roles that cryptocurrencies and gold play.

Earlier this month bitcoin futures were launched. Whilst an interesting development, they are structurally different to physically-backed gold ETFs.

The bitcoin ETF does not hold the underlying asset – it is based on cash-settled bitcoin futures. Physical gold ETFs hold the underlying asset – physical gold.

The final point to consider on cryptocurrencies is the regulatory framework. This is constantly evolving and is not yet settled, adding another element of risk to the cryptocurrency market.

Andrew joined the World Gold Council in 2016 and has led the regional office in Singapore since 2020.

So if cryptocurrencies are not displacing gold, what are the reasons for gold’s mixed performance so far this year?

It has been an interesting year for gold. From last year’s record high gold price and inflows into ETFs, gold has so far had a more mixed year. The World Gold Council’s latest Gold Demand Trends Q3 report showed an overall decline in demand of seven per cent year-on-year.

Retail demand has started to pick up as the ending of COVID restrictions and recovery of economic activity in many markets has increased consumer sentiment – jewellery demand increased 33 per cent year-on-year and bar and coin demand – a category of physical gold products overwhelmingly bought by retail investors – saw a year-on-year increase of 18 per cent.

But despite consumer demand starting to recover, ETF outflows, albeit modest, were enough to place overall gold demand into a year-on-year decline. This is a reflection of gold’s dual nature.

Economic growth is a primary driver of consumer demand. But institutional investment demand has other drivers, including the interest rate outlook and market uncertainty.

Gold ETFs have experienced outflows in six of the first 10 months of the year as ETF investors have generally followed gold price trends. The picture though is mixed – European and North American ETFs have seen outflows, but Asia-based ETFs have seen modest inflows this year.

Outside of slightly negative Q2 flows, Asian gold ETFs have consistently stood out as the often lone growth driver among global funds, having added nearly $US1.3 billion ($1.8 billion), or 18 per cent, in the year to end-October as concerns mount around regional economic growth.

Australia has similarly seen inflows where (as at October 31), gold ETFs saw inflows of 6.5 per cent.

Despite the overall modest outflows from ETFs in the last quarter, gold is once again regaining its shine. In October, gold gained 1.5 per cent in the face of a surge in inflation expectations, higher bond yields, and a weaker dollar. More recent news suggests that this will be sustained, meaning institutional interest in gold could once again pick up.

Inflation may drive interest in gold

As countries emerge from lockdowns and economies continue to recover from the impact of COVID, consumer demand (jewellery, bars and coins, and technology demand) is likely to be supported. When it comes to institutional investment demand, the shifting policy environment may be a challenge.

While gold has been inversely correlated with nominal interest rates over recent years, gold strengthened during October despite higher nominal rates. One of the reasons for this could be inflation expectations.

In the United States, CPI and wages grew the most in 30 and 20 years respectively. Here in Australia, core inflation jumped higher than forecast at the end of October, the quickest increase in six years. Inflation will be a consideration in the minds of policymakers, businesses and investors for some time to come. This may renew institutional interest in gold.

This article appeared in the December issue of Australian Resources & Investment.

Austmine

Webinar: Unlocking efficient and productive growth in mining

Thursday 9 December, 3:00pm – 3:45pm AEDT

Join Austmine and Salesforce for an exclusive conversation about digital transformation with Craig Walker, former chief information officer (CIO) of Shell.

With 30+ years of global business experience, Craig understands the modern challenges of a CIO.

He will explore the impact of digital innovation in the mining industry and how it is transforming the way organisations operate, reflecting on how he unlocked efficiency, gained productivity and minimised risk on a global scale.

Craig will also explore the opportunity to mine your data, providing insights into how to extract value and operationalise your data properly, to avoid leaving value on the table.

This is a chance to explore and discuss recent innovations and technological developments that Salesforce can offer, focusing on changing the workforce, artificial intelligence & connectivity, and digital transformation.

Registration:

This webinar is free to attend. Login to the self-service portal to register. For assistance, please contact membership@austmine.com.au.

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Craig Walker – Salesforce senior vice president and strategic advisor in the office of chief executive officer.

Craig joined Salesforce from Shell where he has 32 years of oil and gas experience with key assignments in all regions, and in both upstream and downstream.

As a global CIO of one of Salesforce’s largest customers, he has a deep understanding of the challenges that face a modern CIO.

At Shell, he was responsible for the Salesforce executive relationship, and he trailblazed the setup of a global internal Salesforce Centre of Competence with 200+ people to drive the adoption and phenomenal growth of Salesforce solutions within all areas of Shell’s businesses, while significantly reducing IT operating costs.

Craig spent the last 15 years as a global CIO transforming the trading, supply, and downstream businesses (trading and supply, shipping, manufacturing, chemicals, B2B, and B2C).

Craig also served for six years as an associate partner in KPMG Consulting.

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