Cannabis and blockchain plays are beating miners to investment dollars in Canada
Health & Biotech
Junior ASX-listed miners are enjoying a period of strong investment, but the same can’t be said for their Canadian counterparts which are having to fight off medical marijuana and blockchain rivals for cash.
Junior Canadian miners are at or near 12-month lows says Derek Macpherson, vice president of mining analysis for Toronto-based market dealer Red Cloud Klondike Strike.
“The [Canadian] Venture Exchange certainly has been dominated by junior miners, but particularly recently there are two things going on in Canada that are distracting your typical retail investor,” Mr Macpherson told an industry gathering in Perth on Thursday.
“One is medical marijuana and the second is blockchain.
“The interesting part in Canada is that obviously it’s the same risk profile of investor who invests in junior mining that takes a shot on a blockchain company or a marijuana company.”
It’s not all bad for miners though – pot and blockchain have bred a “bunch of new millionaires”, Mr Macpherson says.
“So there will be money for junior mining again,” Mr Macpherson said. “The downside is it’s not right now as those things are still in their uptick.”