After experiencing what appears to be a bottoming phase in market cap/share prices prices in October 2023, it appears that the worst may be over for investors in the junior company exploration sector.
The market caps of many of the companies on the junior exchanges have risen 20% to 100% or more and many have held their gains – much to the relief of battered investors.

There are various reasons for the cyclical nature of this sector, some easier to identify than others.

The demand for traditional as well as more exotic minerals is not going away anytime soon it appears. In fact there is incredible demand for some metals and minerals in our current technological society.

-For example the demand for lithium hydroxide seems to know very few bounds and the price has soared to $79,000.00 per ton (U.S).
Lithium Chart- Feb 01, 2023

Lithium is used in batteries for the electric vehicle market and this has spurred a major amount of exploration activity for new lithium deposits around the globe.

-Demand for copper is reportedly going to reach unheard of numbers in the near future as well, although price has not really reflected that as of yet. As seen on the internet, a report from S&P Global forecasts that “global demand for the metal could double by 2035, from 25 million metric tons to 50 million metric tons.”
The report also stated that “by 2030, supply from both existing and projected copper mining activities will meet just 80% of our needs.”
Copper Charts from Kitco.com

-In fact all of the minerals used in electric vehicles such as copper, aluminum, manganese, indium, rare earth elements, helium, cobalt, graphite and potash are apparently much needed in our society moving ahead.

-This is not even mentioning the uranium sector which is really a great solution for a lot of our energy problems according to many experts in the field, as the carbon generation is virtually non-existent with nuclear energy.

-So in speaking for weary investors, we say let the good times return to this sector, it has been a long wait!!