The Energy Report: In your Morning Notes in January, you defined much of the energy mining industry as an oligopoly. What do you mean by that?
Chris Berry: Industries like uranium, lithium, vanadium, rare earths or potash typically have a few players at the top that control production and hence pricing. This is a huge barrier to entry for juniors looking to join the ranks of producers.
TER: If the majors are producing enough material to meet today's demand, what are the prospects for the juniors in this market?
CB: It's challenging in the near term because I see supply and demand in balance in many of the metals markets. This is why companies with ample cash on their balance sheets should attract attentionthey can survive until demand recovers. Economic growth has slowed across the globe, which implies lower demand and less need for the many juniors out there. Continue reading "Chris Berry: Energy-Metals Juniors with Derisked Projects Are Takeout Bait"